IRS

SECURE Act Floor Action / Ambassadors in Action with Sens. Scott and Cornyn / DOL Rule

Topics: Advisor Standard of Care, Congress, DOL, IRS, Regulation, Retirement security, SEC, Treasury Department

May 17, 2019 This Week in Washington We learned yesterday that the full House of Representatives will vote on the SECURE Act (H.R. 1994) next week. AALU’s Capitol Hill Club Day during TRANSFORM 2019 played a key role in driving this legislation forward. Ambassador in Action During TRANFORM 2019, Ambassadors met with Sens. Tim Scott...

Client Piece – Transfer for Value

Topics: IRS, Regulation, Treasury Department

The Details – Courtesy of Ken Kies, Federal Policy Group The Code generally excludes death benefits from being treated as taxable income.1 However, there is a general exception to this exclusion for death benefits paid on contracts that were transferred for “valuable consideration.”2 This “transfer for value” rule (“TFV Rule”) generally applies to any “transfer”…

Retirement Income Strategies, What Boomers Need, Future of Insurance Regulation, and More

Topics: COLI/BOLI, IRS, NQDC, Regulation, Retirement security

May 09, 2019 Assets Under Management The Flooring Approach: Creating a Baseline for Retirement Income The flooring approach to retirement income involves building a baseline income to ensure mandatory expenses are met annually, while still having upside potential in your retirement portfolio for non-essential expenses. In this Forbes piece, Jamie Hopkins discusses the fundamentals of…

Re: CC:PA:LPD:PR (REG-103083-18)/Proposed Reportable Policy Sale Regulations (REG-103083-18) (“Proposed Reportable Policy Sale Regulations”)

Topics: IRS, Regulation, Treasury Department

May 9, 2019 Via: Federal eRulemaking Portal: www.regulations.gov (REG-103083-18) The Honorable Steven Mnuchin Secretary of the Treasury U.S. Department of the Treasury 1500 Pennsylvania Avenue, N.W. Washington, D.C. 20220 The Honorable Charles Rettig Commissioner Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, D.C. 20224 CC: PA:LPD:PR (REG-103083-18) Room 5203 Internal Revenue Service P.O. Box 7604…

Comparing Retirement Income Strategies, SCOTUS Case on State Taxation of Trusts, Section 1035 E

Topics: 401(k), Estate planning, IRS, Qualified Plans, Regulation, Retirement security, Trusts

April 25, 2019 Wealth Transfer U.S. Supreme Court Hears Case on States’ Ability to Tax Trust Income A case with significant implications for States’ ability to tax trust income was before the U.S. Supreme Court on April 16, when oral arguments were heard in the case of North Carolina Department of Revenue v. Kimberly Rice...

Retirement bills on the move; Who in Congress worked in Life Insurance; NY Best Interest Rule; Ambassadors in Action; Exec Comp Tax

Topics: Advisor standard of conduct, Congress, IRS, Regulation, Retirement security, Treasury Department

April 5, 2019 Retirement Bills on the Move Late last Friday, Ways and Means Committee Chairman Richie Neal (D-MA), Ranking Member Kevin Brady (R-TX), Rep. Ron Kind (D-WI), and Rep. Mike Kelly (R-PA), introduced the Setting Every Community Up for Retirement Enhancement Act (SECURE Act / H.R. 1994). The SECURE Act builds on legislation AALU…

RE: Excise Tax on Executive Compensation Paid by Tax- Exempt Organizations (Notice 2019-09)

Topics: IRS, Regulation, Tax treatment

April 2, 2019 The Honorable David J. Kautter Assistant Secretary for Tax Policy Department of the Treasury 1500 Pennsylvania Avenue, N.W. Washington, D.C. 20220 Mr. William M. Paul Acting Chief Counsel Internal Revenue Service 1111 Constitution Ave, N.W. Washington, D.C. 20224 RE: Excise Tax on Executive Compensation Paid by Tax- Exempt Organizations (Notice 2019-09) The…

Exec Comp Traps to Avoid, IRS Change Could Expand Rollover Market, Recent Business Valuation Cases, and More

Topics: 162(m), IRS, Regulation, Split-dollar

March 14, 2019 Reminder: March 15th is the deadline for S-Corp and Partnership tax extensions. Business Insurance and Employee Benefits Top Five Executive Compensation Tips & Traps This Baker Donelson piece summarizes five common executive compensation issues that can snare employers and advisors – including both tips to avoid them altogether and solutions for getting...

Recreating a DB Plan, Charitable Contribution Rules, FICA Taxes + NQDC Plans, and More

Topics: 199A, Charitable giving, Defined benefit plans, IRS, NQDC, Qualified Plans, Retirement security

February 14, 2019 Assets Under Management How to Recreate A Defined Benefit Plan in a Retirement Income Portfolio Defined benefit plans are a thing of the past, but Steve Parrish explains how an individual can build a defined benefit element into his or her retirement income portfolio, and establish a floor income during retirement that…