Bill Would Let Seniors Take Retirement Funds Through Annuity
Retirees would be able to take a portion of their retirement savings in the form of an annuity if a bill introduced today by Rep. Earl Pomeroy, D-N.D., were passed into law.
We had heard about annuities and were investigating them for our IRAs. We also heard bad things about pushy brokers over the years. So when we went to the ImmediateAnnuities.com site we were skeptical about calling them. But whenever we called their staff was really friendly. They answered all our questions and one of their reps even told us that at our ages there was no advantage to buying the annuity with our IRAs. These guys are really honest!
H.R. 2748, the Retirement Security Needs Lifetime Pay Act, would adjust the Internal Revenue Code and allow a 50% tax exclusion from a non-qualified lifetime annuity for up to $10,000 a year.
Twenty-five percent of income payments from individual retirement accounts and qualified retirement plans — other than defined benefit plans — also would be tax-exempt.
Additionally, the bill would exclude the value of longevity insurance from amounts subject to required minimum distributions and would clarify the tax effect on payments from partially annuitized deferred annuities.
Mr. Pomeroy announced the bill’s introduction this morning at NAVA’s Government and Regulatory Affairs Conference in Washington.
The bill has been referred to the House Committee on Ways and Means.
NAVA, the variable annuity trade association, is based in Reston, Va.