Annuities Receive Attention in a Proposed Bill
The Retirement Security Needs Lifetime Pay Act, or H.R. 2748, was introduced this week by Rep. Earl Pomeroy (D-N.D.) and Rep. Ginny Brown-Waite (R-FL). This news comes from “Bill would let seniors take retirement funds through annuity” by Darla Mercado of InvestmentNews. Basically, retirees could use part of their retirement savings to invest in an annuity with a significant tax benefit. The Internal Revenue Code would be changed so that 50% of a non-qualified lifetime annuity would not be subject to taxes. This benefit is good for up to $10,000 yearly income. (This article continues below the table...)
This is a table illustrating today's top interest rates for deferred annuities. The table lists the name of the insurance company, annual effective yield, and the number of years for which the yields are guaranteed. To learn more about deferred annuities click any line in the chart or call 800-872-6684 for quick answers.
Deferred Annuity table
|Company / Product||Rate||Years|
|Sentinel Security LifePersonal Choice Annuity 10||3.45 %||10 yrs.|
|Midland National LifeGuarantee Ultimate 9||3.05 %||9 yrs.|
|Midland National LifeGuarantee Ultimate 8||2.85 %||8 yrs.|
|Sentinel Security LifePersonal Choice Annuity 7||3.20 %||7 yrs.|
|Midland National LifeGuarantee Ultimate 6||2.30 %||6 yrs.|
|Sentinel Security LifePersonal Choice Annuity 5||2.95 %||5 yrs.|
|Midland National LifeGuarantee Ultimate 4||1.90 %||4 yrs.|
Since lifetime annuities are the only financial product that provide guaranteed lifetime income, they are crucial to retirement planning. The proposed bill will now go to the House Ways and Means Committee and hopefully be passed into law.
Do you have questions about annuities? You can speak with an annuity expert toll-free at 800-872-6684 (Monday-Friday, 9AM-5PM EST). Or, send your questions and comments by email here. We'll get back to you quickly with an answer!