Litigation

If you hold an annuity outside  of a retirement plan it may get easier to annuitize only a portion of your annuity contract while allowing the remaining amount to grow tax-deferred

The small-business lending bill HR 5297 which just passed in the United States Senate.,included a provision enabling just this very thing.

The Retirement Income Journal reports that HR 5297, which passed the Senate by a vote of 61-38, resembles an earlier version passed by the House of Representatives, and reflects an idea that has been around for a while. "This is something that has been proposed before," said Whit Cornman, an ACLI spokesman, citing work by Sens. John Kerry, D-MA, Max Baucus, D-MT, and Rep. Earl Pomeroy, D-ND.   

Please note that differences between the House and Senate versions of the bill still need to  be resolved and there is little time to complete this before the upcoming November elections. According to Congress? Joint Committee on Taxation, the annuities provision would generate revenue of $956 million over ten years, from 2011 to 2020.

The ability to do a partial annuitization represents a  welcome income planning option