Tax break sought for non-qualified lifetime annuities

Two senators have reintroduced legislation that would provide tax breaks to those with non-qualified lifetime annuities. Sens. Kent Conrad, D-N.D., and Pat Roberts, R-Kan., have proposed the Retirement Security for Life Act, or S 1297, which would provide a 50% tax exclusion on the annual income from a non-qualified lifetime annuity, up to $20,000. The Conrad-Roberts bill is similar to the Retirement Security Needs Lifetime Pay Act, HR 2748, which was proposed recently by Reps. Earl Pomeroy, D-N.D., and Ginny Brown-Waite, R-Fla. That measure also would provide a 50% tax exclusion for a portion of lifetime-income payments from non-qualified annuities, up to $20,000, as well as a 25% tax exclusion for a portion of payments received under a qualified retirement plans. The new Conrad-Roberts bill was referred to the Senate Finance Committee.