Retirement Security for Life Act of 2005

The Retirement Security for Life Act of 2005 (S. 381) was a legislative proposal designed to encourage retirees to choose steady, lifelong income streams over lump-sum payouts. The bill would have allowed individuals to exclude 50 percent of their annual income from certain life insurance or annuity contracts from their federal gross income, up to a maximum of $20,000 per year. For a typical retiree, this would have effectively reduced their taxable income, providing a financial incentive to utilize "lifetime annuities" that guarantee payments for as long as the person lives. The bill was referred to the Committee on Finance but did not advance further during the 109th Congress.