Variable Annuity Account C
Aetna Life Insurance and Annuity Company
Supplement dated January 1, 1997, to Prospectus dated May 1, 1996
This information supplements your current Prospectus and should be read and
retained with that Prospectus.
The Small Business Job Protection Act of 1996 (the "Act"), signed into law on
August 20, 1996, has several effects on the Contracts offered in connection with
this Prospectus; these are summarized below.
[bullet] Repeal of Death Benefit Exclusion
While payments received by your beneficiaries after your death are
generally taxed in the same manner as if you had received those payments, a
limited death benefit exclusion may have applied for payments due to deaths
occurring on or before August 20, 1996. This exclusion no longer applies to
payments due to deaths occurring after August 20, 1996.
[bullet] Individual Retirement Annuity ("IRA") Availability
Currently, the IRAs offered in connection with this Prospectus are not
available as "SIMPLE IRAs" as defined in section 408(p) of the Internal
Revenue Code (the "Code").
[bullet] Spousal IRA Limits
As a result of the Act, beginning in 1997, the maximum tax-deductible
contribution a married couple with one working spouse may make to an IRA is
increased to $4,000.
Also, the Health Insurance Portability and Accountability Act of 1996, provides
two new waivers of the 10% penalty tax on certain distributions from IRAs. As of
January 1, 1997, the penalty tax is waived on the amount of distributions from
IRAs for certain unreimbursed medical expenses, and for certain medical or
health insurance premiums if you have been unemployed and receiving unemployment
benefits as described in the Code.
X75992-2
X75988-2
