GRIP
RETIREMENT
SM, LLC
A
Guaranteed Retirement Income Program
for pension and qualified rollovers.
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Pending
Bill - 20,000 Tax Free Annually! H.R. 4849 would exempt 50 percent of the taxable cash flow from an annuity (up to $20,000 annually) from income tax. The annuity must be a commercial, non-qualified payout policy that has a life contingency. Samples of how H.R. 4849 would work. Assume a male age 65, has a $200,000 cost basis and an accumulation value of $600,000. With a guaranteed life annuity payout that pays $50,000 annually and a life expectancy of 20 years, $10,000 ($200,000 divided by 20 years) is the tax-excluded income cost basis and $40,000 ($50,000 minus $10,000) is taxable. Under H.R. 4849, 50% of that $40,000 ($20,000) would be tax-free as well! Now, suppose a female, age 65, has $1.2 million in cash and tax-paid investments. She uses this cache to acquire a single premium immediate annuity that pays her $100,000 annually (for an anticipated 20 years). Of course, $60,000 of each payment ($1.2 million divided by 20 years) is tax-free, and $40,000 is taxable. But under H.R. 4849, $20,000 of each taxable portion would be exempt. Additional Links:
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