WASHINGTON BUREAU — Members of the Senate today voted 61-38 to pass H.R. 5297, the Small Business Lending Fund Act bill.
The version of the bill that the Senate approved would do nothing to eliminate or reduce the scope of broad new Form 1099 tax reporting requirements.
Both Democrats and Republicans have been trying to use H.R. 5297 as a vehicle for easing the effects of the requirements, which were included in the Affordable Care Act, the legislative package that includes the Patient Protection and Affordable Care Act (PPACA), and will require businesses and other entities to send Form 1099 reports to any vendor that gets $600 or more from them in a single year.
The bill does include a provision that would simplify the rules governing partial withdrawal of funds from an annuity contract and a provision that would help individuals with traditional 401(k), 403(b) and 457 plans roll plan assets into the Roth versions of the accounts.
The partial annuitization provision originally was proposed by Rep. Earl Pomeroy, D-N.D. It would let annuity owners annuitize a portion of contract while leaving the rest of the cash in the contract, rather than having to prepare for partial annuization by exchanging an annuity for two separate annuities, then annuitizing one and leaving in the other annuity alone, according to the American Council of Life Insurers (ACLI), Washington.
Senate Finance Committee Chairman Max Baucus, D-Mont., and Sen. John Kerry, D-Mass., helped get the provision through the Senate, the ACLI says.
The provision “provides additional flexibility to a product that is playing a crucial role in helping Americans achieve retirement income security,” ACLI President Frank Keating says in a statement.