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. 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.
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