A House bill introduced by Representative Earl Pomeroy, D-N.D., would affect the tax treatment of certain annuities and income from IRAs.
H.R. 2748, the Retirement Security Needs Lifetime Pay Act, would create a tax exemption for 50% of the income drawn from a non-qualified annuity. The exemption would be capped at $10,000 per year.
The bill would also create a 25% tax exemption for income payments from an individual retirement account (IRA).
Last, the bill would exclude the value of longevity insurance from the amounts subject to required minimum distributions from IRAs. This has been somewhat of a gating issue for longevity annuities, so the bill could pave the path for increased adoption of these products.
Source: Investment News
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