A new bill proposed in the House would exempt up to $20,000 in annuity income from federal taxation. The Retirement Security for Life Act of 2004 proposes that 50% of annuity income, up to $20,000 annually, be free of taxes, amounting to savings up to $5,000 for someone in the 25% tax bracket.

The bill is supported by both republicans and democrats and is backed the Americans for Secure Retirement, a coalition that includes insurance company groups, the National Association for Variable Annuities, women’s groups and various agri-business groups.

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