AALU Celebrates Insurance Business Tax Win

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January 31, 2019                                                                                                                                         (202) 772-2493

AALU Celebrates Insurance Business Tax Win

Cadin: “The IRS announcement of tax relief for life insurance businesses is not only a giant victory for thousands of small employers and the consumers they serve – it is a significant advocacy achievement for AALU”


WASHINGTON, D.C. – The Association for Advanced Life Underwriting (“AALU”) – the leading organization of life insurance professionals – is very pleased that the Department of Treasury’s final regulations on the new 20% deduction on qualified business income for owners of pass-through entities (199A) allow commissioned-based life insurance sales income to qualify, and may provide meaningful tax savings related to the deduction for business owners or independent contractors principally engaged in this activity.

That the final rules reflect our rationale for allowing commission-based life insurance sales activity to qualify for the deduction – as AALU expressed in an October comment letter to Secretary Steven Mnuchin and Commissioner Charles Rettig – provides reason for thousands of small life insurance professionals and firms across the country to celebrate.

“AALU applauds the administration’s move, which recognizes the important role that life insurance plays in our society,” said CEO Marc Cadin. “Critical tax relief will enable small and mid-size businesses to invest more on their workforce and to provide greater financial and retirement security through life insurance – a vital product for 75 million American families and thousands of businesses nationwide. The IRS announcement of tax relief for life insurance businesses is not only a giant victory for thousands of small employers – it’s a significant advocacy achievement for AALU.”

BACKGROUND:

 On October 1, 2018, AALU Submitted A Comment Letter to Treasury Secretary Steven Mnuchin And IRS Commissioner Charles Rettig To Ensure the Availability of Section 199A’s Deduction for Life Insurance Professionals.

  • Read the letter HERE

About AALU

AALU’s Mission is to advocate on behalf of their members, who provide the financial and retirement security for the American people.  Since 1957, AALU has consistently delivered results on behalf of these professionals who provide life insurance and retirement planning solutions for individuals, families, and businesses. We believe that the American people live better, healthier, more productive lives when they have an advisor who helps make good financial choices. AALU is headquartered in Washington, D.C.