A new Senate bill could provide a 50% tax exclusion on up to $40,000 in annual income from a non-qualified lifetime annuity.
The Retirement Security for Life Act, S. 1297, was introduced by Sens. Kent Conrad, D-N.D., and Pat Roberts, R-Kan., members of the Senate Finance Committee. If S. 1297 passes, a taxpayer could receive up to $40,000 per year in lifetime annuity income and keep half of that total out of taxable income.
A typical U.S. retiree in the 25% tax bracket who used a lifetime annuity could save up to $5,000 in taxes annually, according to officials at Americans for Secure Retirement, Washington.