Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Saving for Retirement

Senate Gets Annuity Bill

Your article was successfully shared with the contacts you provided.


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.

S. 1297 is similar to H.R. 2748, a bill recently introduced in the House by Reps. Early Pomeroy, D-N.D. and Ginny Brown-Waite, R-Fla.

“This legislation is a critical component of retirement policy, and we are pleased that Congress is making helping Americans secure a financially sound retirement a priority,” ASR Chairman Bill Waldie says in a statement.

S. 1297 would be especially helpful to taxpayers who are not covered by employer-sponsored retirement plans and who build retirement savings by using a life insurance policy or by selling a home or business, according to the American Council of Life Insurers, Washington.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.