The Small-Business Jobs Act (H.R. 5297), signed into law by President Obama last week, contains a provision that aims to make annuities more attractive to consumers looking for retirement income.
The legislation includes a provision that allows holders of non-qualified annuities to carve out some of the funds from a deferred annuity and buy an immediate annuity contract with those proceeds. The original deferred annuity will continue to grow and accumulate tax-deferred income. Designated as an offset, it is designed to promote retirement preparedness.
The Obama administration has been a strong supporter of using annuities for retirement income.