Bill To Offer Tax Incentives for Annuity Conversion
Legislation that would offer workers tax incentives to convert some of their retirement savings into annuities was introduced today by Rep. Earl Pomeroy, D-N.D., and Rep. Ginny Brown-Waite, R-Fla., according to a news release from Mr. Pomeroy’s office.
Under the bill, the Retirement Security Needs Lifetime Pay Act, households that convert after-tax dollars into lifetime annuities would not have to pay tax on up to 50% of the first $20,000 in taxable annuity payouts they receive annually, said Sandra Salstrom, Mr. Pomeroy’s spokeswoman.
Individuals who convert pre-tax retirement account savings to annuities would not have pay tax on 25% of the first $20,000 of annuity payments they receive each year, Ms. Salstrom said.
The bill is expected to be referred to the House Ways and Means Committee.