Life insurance products

Timing a Sale of a Business under 199A, Tips for Naming IRA Beneficiaries, SALT Workaround Analysis, Qualifying for QSBS Status, and More.

Topics: 199A, IRAs, Life insurance products, Regulation, Retirement security, Tax reform

February 28, 2019 Wealth Transfer How the Timing of the Sale of a Small Business Can Impact the Section 199A Deduction Lou Vlahos at Farrell Fritz explains how, all things being equal, changes in the TCJA mean that the point during the tax year that a passthrough business sells its qualified business may have a…

What You Need to Read

Topics: IRS, Life insurance products, Regulation, Tax reform

January 17, 2019 Wealth Transfer Modern Divorce Settlements Are About to Look A Lot Different Due to a provision in last year’s tax bill, the income tax ramifications of alimony payments will likely cause divorce settlements to look differently going forward. In response to the change, instead of requiring the wealthier spouse to pay alimony...


Topics: Annuities, Life insurance products

The Michigan Department of the Treasury recently issued Michigan Revenue Administrative Bulletin No. 2017-25 to provide guidance on the tax treatment of contributions to and distributions from a IRC §403(b) annuity plan.

President Trump Signs Resolution Eliminating Safe Harbor Exemption for “State Auto-IRAs” Run by Local Governments

Topics: IRAs, Life insurance products

So-called “state auto-IRAs” allow employees to contribute to an IRA program run by a state or local government with automatic payroll deductions that are made and submitted to the program by the employer. Recent Dept. of Labor (DOL) regulations provided safe harbor rules that could be followed to exempt state auto-IRAs from ERISA requirements.

State Auto-IRA Update- Congress Acts to Block DOL Rules Allowing State & Local Government Sponsored Retirement Programs

Topics: DOL, IRAs, Life insurance products, Regulation

Automatic IRAs allow employees to make contributions to an IRA run by a state or certain local subdivisions with automatic payroll deductions made and submitted to the state/locality by the employer (“State Auto-IRAs”). In 2016, the DOL issued regulations that provide State Auto-IRAs with a safe harbor exemption from ERISA requirements, while similar, private payroll…

Taxpayer’s Receipt of Outright Cash from Original Insurance Company Barred 1035 Treatment for Annuity Exchange

Topics: Annuities, Life insurance products

The taxpayer inherited a non-qualified annuity from his father and wished to exchange the annuity for a new annuity issued by another insurance company. He assumed the exchange would be tax-deferred under Code Section 1035, but he failed to exchange annuity contracts as required by Section 1035. Instead, he cashed in the inherited annuity contract,…