H.R. 5297: Partial Annuitization Provision to Take Effect Jan. 1, 2011
September 28, 2010 by Allison Bell
- By ALLISON BELL
Published 9/27/2010
President Obama today signed H.R. 5297, the Small Business Jobs Act of 2010 bill, into law.
The bill has been a vehicle for getting many loan programs and tax break extension provisions through Congress.
One provision, for example, will ease the rules small businesses follow when deducting cell phone costs from taxable income.
Another provision will let self-employed individuals deduct the cost of health coverage when calculating 2010 self-employment taxes.
Among life insurers and annuity issuers, Section 2113, a partial annuitization provision, has been the bill provision getting the most attention.
Section 2113 will let annuity holders annuitize some of the assets in an annuity and keep the other assets in the contract. The provision will apply to annuity income that taxpayers receive in taxable years beginning after Dec. 31.
Today, annuity holders who want to annuitize a portion of the assets on a contract must exchange the annuity for two separate annuities.
The Insured Retirement Institute (IRI), Washington, has put out a statement praising Obama for his efforts to expand access to products that offer streams of guaranteed lifetime retirement income.
“While Boomers continue to express concern that they are not prepared for retirement, this new law will give them the flexibility to adjust their savings strategies to fit their unique retirement income needs,” IRI President Cathy Weatherford says in a statement.
