Robert Bloink and Prof. William Byrnes’ (Texas A&M Law) weekly Tax Facts Intelligence strategy newsletter for financial advisors is available via the Tax Facts app or search.TaxFactsOnline.com
Archive for the ‘Pensions’ Category
Beware the Roth Conversion Penalty Trap
Posted by William Byrnes on August 21, 2023
Posted in Pensions, Retirement Planning, Taxation, Wealth Management | Tagged: #retirement #financial planning #wealthmanagement | Leave a Comment »
TaxFacts Intelligence December 3, 2020
Posted by William Byrnes on December 3, 2020
This week, we examine the new October regs (subscribers received this analysis the next day) on the process of establishing an ABLE account. The new rules provide increased flexibility in terms of who can establish the account, which may be an important factor when support for the beneficiary comes from multiple family members. We also have additional clarification on the Small Business Exemption to the Business Interest Deduction rules and a new online resource from the IRS that assists those who are closing a business. . .
Prof. William H. Byrnes | Robert Bloink, J.D., LL.M. |
Final ABLE Account Regulations Offer New Flexibility
The IRS final ABLE account regulations broaden the range of parties who are eligible to establish an account. Under the new rules, the beneficiary can designate any person to establish an account on their behalf. If the beneficiary is unable to designate a person, the account can be set up by an agent under a power of attorney, a conservator, legal guardian, spouse, parent, sibling, grandparent or representative payee appointed by the Social Security Administration (in that order of priority). The ABLE program itself is entitled to rely upon the person’s certification that he or she is authorized to set up the account for the benefit of a disabled person, and that there is no person with a higher priority who is willing and able to set up the account. Similarly, the person who establishes the account will generally have signature authority over the account. For more information on the ABLE Account rules, visit Tax Facts Online. Read More
IRS Clarifies Small Business Exemption to Business Interest Deduction Rules
The 2017 tax reform legislation changed the general rules for deducting business interest. While the 2020 CARES Act relaxed the new limitations, the new rule generally limits the business interest deduction. Small businesses that are not tax shelters are not subject to the new limits if they pass the gross receipts test (by having average annual gross receipts of no more than $26 million for the past three tax years). Related entities are generally aggregated if they’re aggregated for other tax code purposes. In past years, some small businesses were uncertain whether they fell into the definition of “tax shelter” because there was some uncertainty in the way “syndicate” was defined–multiple definitions apply in different tax code sections. The IRS clarified this by releasing proposed regulations specifying that “syndicate” is defined using the Treasury Regulation Section 1.448-1T(b)(3) definition. Because of this, only small businesses that have passive investors who are actually allocated losses are treated as tax shelters that are ineligible. For more information, visit Tax Facts Online. Read More
IRS Creates Online Resource for Closing a Business
Unfortunately, many small business owners have been forced to close due to the economic fallout of the Covid-19 pandemic. The IRS has now created an online resource giving business owners step-by-step information about how to close a business. The website reminds taxpayers that they are required to file a final tax return for the year the business closes. The relevant form will depend upon the type of business entity involved. Employers are also required to pay employees all compensation that they’re owed—and must pay related employment taxes on those wages. They must also report any payments in excess of $600 made to independent contractors. The business should also close all business accounts and cancel their EIN by sending a letter to the IRS. For more information on the tax obligations of employers, visit Tax Facts Online. Read More
Texas A&M University School of Law’s online wealth and international tax risk management graduate curricula for industry professionals has attracted over 160 enrollment this fall semester. Apply now for courses that begin January 11 spring semester. See the international tax course list by > weekly topic here. < Texas A&M, annual budget of $6.3 billion (FY2020), is the largest U.S. public university, one of only 60 accredited U.S. universities of the American Association of Universities (R1: Doctoral Universities – Highest Research Activity) and one of only 17 U.S. universities that hold the triple U.S. federal grant of Land, Sea, and Space!
- Ranked in top 20 public universities by Wall Street Journal / Times Higher Education (2020)
- #1 endowment for U.S. public universities, #7 overall
- #1 of U.S. public universities for a superior education at an affordable cost
- #1 for most CEOs employed by Fortune 500
- Rank 11th “Best Public Colleges” Money’s Best Colleges Report, 2019
- Texas A&M ranks #1 in Texas, #1 in the SEC, and #12 in the U.S. in Washington Monthly’s 2020 overall college rankings based on the quality of education, accessibility, graduation rates, student involvement, and research: see tx.ag/WashMonth20
Posted in Pensions, Retirement Planning, Taxation, Wealth Management | Leave a Comment »
TaxFacts Intelligence Nov 23, 2020
Posted by William Byrnes on November 23, 2020
This week we analyze two updates on how the CARES Act is impacting retirement plans. First, we have additional information about re-contributing COVID hardship distributions for qualified plans. Recall that the CARES Act offers a generous window in which to make those re-contributions, so this may be an important topic for end-of-the year tax planning. We also see an update for single-employer defined benefit plans, including some important deadlines. Happy tax reading for Thanksgiving week!
Prof. William H. Byrnes | Robert Bloink, J.D., LL.M. |
Clearing up Confusion About Re-Contributing Coronavirus-Related Retirement Distributions
The CARES Act relaxed the hardship distribution rules so that plan participants suffering hardships because of the coronavirus pandemic could access their retirement savings. The law also allows participants to re-contribute those funds within three years of the distribution without penalty. Employer-sponsored plans, however, are only able to accept rollovers from participants (and sometimes new hires). Therefore, if an employee takes their entire account balance as a coronavirus-related hardship distribution and later stops working for the employer, the person is no longer a participant or new hire. For more information on the rules regarding CRDs, visit Tax Facts Online. Read More
Agencies Offer New CARES Act Contribution Relief for Single-Employer Defined Benefit Plans
Sponsors of defined benefit plans are generally required to pay premiums annually to the PBGC. Calculating the premium amount is complex. The first factor imposes a flat-rate, per-participant amount. The second portion is variable, and is based on the plan’s unfunded vested benefits. In calculating this amount, the sponsor is allowed to include any contributions made up to the filing due date. The CARES Act extended the deadline for making a 2019 defined benefit contribution until January 1, 2021. For more information on the defined benefit plan funding rules, visit Tax Facts Online. Read More
IRS Issues Final Regs on Post-TCJA Deductions for Estates and Non-Grantor Trusts
The IRS has released final regulations to clarify that estates and non-grantor trusts are entitled to take certain deductions even after the 2017 tax reform legislation eliminated miscellaneous itemized deductions and suspended the personal exemption for 2018-2025. Generally, non-grantor trusts are entitled to deduction otherwise deductible expenses that would not be incurred but for the fact that the property or assets are held in trust. For more information on the taxation of trusts and estates, visit Tax Facts Online. Read More
Texas A&M University School of Law’s online wealth and international tax risk management graduate curricula for industry professionals has attracted over 160 enrollment this fall semester. Apply now for courses that begin on January 18 spring semester. See the international tax course list by > weekly topic here. <
Texas A&M, annual budget of $6.3 billion (FY2020), is the largest U.S. public university, one of only 60 accredited U.S. universities of the American Association of Universities (R1: Doctoral Universities – Highest Research Activity) and one of only 17 U.S. universities that hold the triple U.S. federal grant of Land, Sea, and Space!
- Ranked in top 20 public universities by Wall Street Journal / Times Higher Education (2020)
- #1 endowment for U.S. public universities, #7 overall
- #1 of U.S. public universities for a superior education at an affordable cost
- #1 for most CEOs employed by Fortune 500
- Rank 11th “Best Public Colleges” Money’s Best Colleges Report, 2019
- Texas A&M ranks #1 in Texas, #1 in the SEC, and #12 in the U.S. in Washington Monthly’s 2020 overall college rankings based on the quality of education, accessibility, graduation rates, student involvement, and research: see tx.ag/WashMonth20
Posted in Pensions, Retirement Planning, Taxation, Wealth Management | Tagged: CARES Act, SECURE Act, tax facts | Leave a Comment »
Estate Planning Update 2020-21 (Lexis)
Posted by William Byrnes on October 22, 2020
Texas Estate Planning Publication Update (2020) [Lexis permalink is here]
Highlights
Current Developments: In this Release 27 of Texas Estate Planning, Prof. William Byrnes analyzes the latest developments and decisions in the federal and Texas courts, including the 2017 Tax Cuts and Jobs Act, the Bipartisan Budget Act of 2018, the SECURE Act of 2019, as well as legislation and consideration resulting from the 2020 COVID-19 pandemic that impact estate planners.
Release 27 of Texas Estate Planning includes 21 chapter revisions of the latest rulings, regulations, cases, and inflationary adjustments, as well as the amendments and additions to law by the biennial 2019 86th Texas legislative session, the Tax Cuts and Jobs Act, the Bipartisan Budget Act of 2018, the SECURE Act of 2019, and CARES Act of 2020. Highlights of this release include:
The SECURE Act. The SECURE Act that took effect in 2020 specifically targets estate planning opportunities for individual retirement accounts. The impact is analyzed in Chapter 1.
T.D. 9884; Treas. Reg. § 20.2010-1(c). The I.R.S. confirmed that gifts made during 2018 through 2025 will attach the transfer tax exemption amount applicable on the date of the gift, and thus allow credit for the higher pre-2026 amount post-2026 even though the transfer tax exemption will have reverted to the pre-2018 amount (adjusted for inflation). The impact is analyzed in Chapter 2.
State Imposition of Tax on Trust Income. Some states attempt to tax trust income based on the residency of the beneficiary. In North Carolina Department of Revenue v. The Kimberly Rice Kaestner 1992 Family Trust, the State of North Carolina imposed an income tax on accumulated income of an irrevocable trust created in New York because of the residency of three beneficiaries in North Carolina. The U.S. Supreme Court in a decision based on the specific facts of the case held that the tax violated the Due Process Clause. See Chapter 31.
Impact of Tax Cuts and Jobs Act Exclusion. The IRS for 2018 reported that it received 34,092 total estate tax returns and 245,584 gift tax returns. Of the estate tax returns for 2018, the IRS reported that it received 5,484 taxable returns (which most likely relate to deaths in 2017) reporting $106 billion of estate gross assets and a tentative estate tax liability of $34 billion. The Urban Institute Tax Policy Center estimates that for 2020 only 1,900 estate tax returns will have tax owing of a total $16 billion.
Tax Cuts and Jobs Act Exclusion. The Tax Cuts and Jobs Act of 2017 (“TCJA”) increases from 2018 until 2026 the transfer tax exemption to $10 million per individual indexed for inflation so that for 2020 the amount is $11.58 million or $23.16 million per married couple. The 2020 annual gift tax exclusion for gifts made to a non-citizen spouse is $157,000. In 2026, the transfer tax exemption reverts back to the 2017 level indexed for inflation (in 2018 it would have been $5.6 million). All chapters have been updated to reflect these changes as well as the inflation adjustments of Rev. Proc. 2019-44.
U.S. Estate Tax Regime On High Net Wealth Immigrants. Chapter 7 analyzes planning strategies to mitigate exposure of foreign assets to U.S. estate tax.
IRS Settlement Offer For Microcaptives. See Chapter 5.
- See the full chapter list here
Author and Contributors
Professor William Byrnes of Texas A&M University School of Law and author of ten Lexis legal treatises is the author of Texas Estate Planning. He has assembled a team of preeminent subject matter experts as chapter contributors, including: Tena Fox (Leach & Fox), Terry Leach (Leach & Fox), Patrick McCormick (Drucker Scaccetti), Benjamin Terner (The Einstein Group), Kim Donovan Uskovich (Kelly Hart), and James Weller (Greenway Capital Advisors).
Interested in the two volumes of Estate Planning book? See here
Posted in Pensions, Retirement Planning, Taxation, Uncategorized, Wealth Management | Tagged: estate planning | Leave a Comment »
Byrnes & Bloink’s TaxFacts Intelligence (September 30, 2020)
Posted by William Byrnes on September 30, 2020
Texas A&M University School of Law’s online wealth and international tax risk management graduate curricula for industry professionals has attracted over 160 enrollment this fall semester. Apply now for courses that begin January 11 spring semester. See the international tax course list by > weekly topic here. <
Texas A&M, annual budget of $6.3 billion (FY2020), is the largest U.S. public university, one of only 60 accredited U.S. universities of the American Association of Universities (R1: Doctoral Universities – Highest Research Activity) and one of only 17 U.S. universities that hold the triple U.S. federal grant of Land, Sea, and Space!
- Ranked in top 20 public universities by Wall Street Journal / Times Higher Education (2020)
- #1 endowment for U.S. public universities, #7 overall
- #1 of U.S. public universities for a superior education at an affordable cost
- #1 for most CEOs employed by Fortune 500
- Rank 11th “Best Public Colleges” Money’s Best Colleges Report, 2019
- Texas A&M ranks #1 in Texas, #1 in the SEC, and #12 in the U.S. in Washington Monthly’s 2020 overall college rankings based on the quality of education, accessibility, graduation rates, student involvement, and research: see tx.ag/WashMonth20
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Happy October Fest! Several states now allow employers to use federal forms (1094-C and 1095-C) for state reporting requirements. This may be the beginning of an interesting trend towards simplification of state filing requirements. Obviously, not everything from a federal filing translates directly into state filings (for example, many states treat pension income differently in an attempt to lure retirees), but often much of the information that is filed for a state is redundant to the respective federal forms.
California Allows Employers to Use Federal Forms 1094-C and 10-95-C. Will Other States Follow?
California and several other states have imposed their own state-level individual mandates that closely resemble the Affordable Care Act mandate (now reduced to $0). California’s mandate became effective in 2020. Recently, the state announced that employers can satisfy their state-level reporting responsibilities using the same forms that apply for federal purposes. Employers who offer health insurance to California residents must now also submit their Forms 1094-C and 1095-C to the state franchise tax board (as well as the IRS under federal rules that continue to require employer reporting). Currently, however, the state-level forms must be filed by January 31. Historically, the IRS has extended the federal deadline to March 2. Employers should continue to pay close attention to ensure both state and federal requirements are satisfied. For more information on the employer reporting obligations, visit Tax Facts Online. Read More
PBGC CARES Act Relief for Defined Benefit Plans
Sponsors of defined benefit plans are generally required to pay premiums annually to the PBGC. Calculating the premium amount is complex. The CARES Act extended the deadline for making a 2019 defined benefit contribution until January 1, 2021. However, according to PBGC guidance, these contributions must be made by October 15, 2020 in order to be included in calculating the variable portion of the plan sponsor’s PBGC premium. Contributions paid before January 1, 2021 are not considered late, so the plan sponsor does not have to worry about incurring any additional filing obligations. For more information on the defined benefit plan funding rules, visit Tax Facts Online. Read More
Updated Model Safe Harbor Notice for Rollover Transactions
Retirement plan qualification rules periodically require employers to provide notice to participants who are eligible to take rollover distributions. In Notice 2020-62, the IRS released an updated safe harbor model notice that taxpayers can use under Section 402(f). That notice identifies several types of new distributions that are not eligible for rollover. This model notice can be modified, but is generally required for all 401(k), 403(b) and 457 plans that make distributions that are eligible for rollover to another retirement account. For more information on the notice requirements, visit Tax Facts Online. Read More
Byrnes & Bloink’s Tax Facts Offers a Complete Web, App-Based, and Print Experience
Reducing complicated tax questions to understandable answers that can be immediately put into real-life practice, Tax Facts works when and where you need it….on your desktop, at home on your laptop, and on the go through your tablet or smartphone.
- all Tax Facts books
- Tax Facts Intelligence weekly newsletters
- weekly strategy articles for client advisory
- weekly transcribed debate discussion for client soft-skill discussion
- among other weekly client advisory critical updates
Questions? Contact customer service: TaxFactsHelp@alm.com| 800-543-0874
Posted in Pensions, Retirement Planning, Taxation, Wealth Management | Tagged: tax facts | Leave a Comment »
Byrnes & Bloink’s Covid-19 TaxFacts Intelligence Weekly for April 3, 2020
Posted by William Byrnes on April 3, 2020
Texas A&M University School of Law has launched its online wealth management, risk management, and international tax risk management graduate curricula for industry professionals. Apply now for Summer courses that begin May: Legal Risk Management; Intro to Risk Management; FATCA & CRS Risk Management; International Tax Risk Management, Data, and Analytics I Texas A&M University is a public university and is ranked 1st among public universities for its superior education at an affordable cost (Fiske, 2018) and ranked 1st of Texas public universities for best value (Money, 2018).
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WEBINAR
Small Business Incentives Under the CARES Act: Will it Help My Business?
Tuesday, April 7, 2020, 12:00 noon – 1:00 p.m. Central
Learn how the CARES Act affects your business.
Texas A&M Law faculty experts share practical, fact-based information regarding how the CARES Act is affecting those of us in Texas in this free webinar.
- Access to and eligibility for loans for small businesses
- Implications for payroll tax payments and employee tax credits
Presenters:
- Neal Newman, Professor of Law
- William Byrnes, co-author of the Tax Facts books
- William Henning, Executive Professor of Law (Moderator)
Posted in Pensions, Reporting, Retirement Planning, Tax Policy, Wealth Management | Tagged: Covid-19, tax facts | Leave a Comment »
Byrnes & Bloink’s TaxFacts Intelligence Weekly for Financial Advisors (March 16, 2020)
Posted by William Byrnes on March 16, 2020
Texas A&M University School of Law has launched its online wealth management, risk management, and international tax risk management graduate curricula for industry professionals. Apply now for Summer courses that begin May: FATCA & CRS Risk Management; International Tax Risk Management, Data, and Analytics I Texas A&M University is a public university and is ranked 1st among public universities for its superior education at an affordable cost (Fiske, 2018) and ranked 1st of Texas public universities for best value (Money, 2018). To apply for Summer, call or fill in the form https://law.tamu.edu/distance-education/
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2020’s Tax Facts Offers a Complete Web, App-Based, and Print Experience
Reducing complicated tax questions to understandable answers that can be immediately put into real-life practice, Tax Facts works when and where you need it….on your desktop, at home on your laptop, and on the go through your tablet or smartphone. Questions? Contact customer service: TaxFactsHelp@alm.com| 800-543-0874
Posted in Pensions, Retirement Planning, Taxation | Tagged: Retirement planning, tax facts | Leave a Comment »
Byrnes & Bloink’s TaxFacts Intelligence Weekly for Financial Advisors (March 5, 2020)
Posted by William Byrnes on March 5, 2020
Texas A&M University School of Law has launched its online wealth management, risk management, and international tax risk management graduate curricula for industry professionals. Apply now for Summer courses that begin May: FATCA & CRS Risk Management; International Tax Risk Management, Data, and Analytics I Texas A&M University is a public university and is ranked 1st among public universities for its superior education at an affordable cost (Fiske, 2018) and ranked 1st of Texas public universities for best value (Money, 2018). To apply for Summer, contact Jeff Green, Graduate Programs Coordinator, T: +1 (817) 212-3866, E: jeffgreen@law.tamu.edu or contact David Dye, Assistant Dean of Graduate Programs, T (817) 212-3954, E: ddye@law.tamu.edu. Texas A&M Admissions website: https://law.tamu.edu/distance-education/
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2020’s Tax Facts Offers a Complete Web, App-Based, and Print Experience
Reducing complicated tax questions to understandable answers that can be immediately put into real-life practice, Tax Facts works when and where you need it….on your desktop, at home on your laptop, and on the go through your tablet or smartphone. Questions? Contact customer service: TaxFactsHelp@alm.com| 800-543-0874
Posted in Pensions, Retirement Planning, Taxation, Wealth Management | Tagged: tax facts | Leave a Comment »
Client’s Seeking Market Value Adjusted Annuities
Posted by William Byrnes on March 16, 2014
As clients have begun to feel the shifting winds with respect to the general economy, the annuity market is now undergoing its own type of evolution. While products that tie fluctuations in an annuity’s cash surrender value to prevailing market interest rates may have seemed unacceptably risky to most clients just a few months ago, changes in today’s interest rate environment now have clients flocking to find these features.
Annuities with market value adjustment (MVA) features may be the next hot product for clients looking to beat the return on other conservative investment products, so make sure you are ready for this emerging product trend.
Read the full analysis of Professor William Byrnes and Robert Bloink at Think Advisor !
Authoritative and easy-to-use, 2014 Tax Facts on Insurance & Employee Benefits shows you how the tax law and regulations are relevant to your insurance, employee benefits, and financial planning practices. Often complex tax law and regulations are explained in clear, understandable language. Pertinent planning points are provided throughout.
Organized in a convenient Q&A format to speed you to the information you need, 2014 Tax Facts on Insurance & Employee Benefits delivers the latest guidance on:
- Estate & Gift Tax Planning
- Roth IRAs
- HSAs
- Capital Gains, Qualifying Dividends
- Non-qualified Deferred Compensation Under IRC Section 409A
- And much more!
Key updates for 2014:
- Important federal income and estate tax developments impacting insurance and employee benefits including changes from the American Taxpayer Relief Act of 2012
- Concise updated explanation and highlights of the Patient Protection and Affordable Care Act (PPACA)
- Expanded coverage of Annuities
- New section on Structured Settlements
- New section on International Tax
- More than thirty new Planning Points, written by practitioners for practitioners, in the following areas:
- Life Insurance
- Health Insurance
- Estate and Gift Tax
- Deferred Compensation
- Individual Retirement Plans
Plus, you’re kept up-to-date with online supplements for critical developments. Written and reviewed by practicing professionals who are subject matter experts in their respective topics, Tax Facts is the practical resource you can rely on.
Posted in Insurance, Pensions, Retirement Planning | Tagged: Annuity, Byrnes, Market Value Adjusted Annuities, Retirement planning, William Byrnes | Leave a Comment »
ESOPs: A Tax-Advantaged Business Succession Plan
Posted by William Byrnes on February 12, 2014
Employee stock ownership plans (ESOPs) can serve a number of purposes for your small business clients, providing a powerful motivator for employees and simultaneously reducing corporate taxes. In today’s market, however, the most important function of an ESOP may actually solve one of your retiring small business client’s most pressing problems—how to exit the business upon retirement.
This business succession strategy can actually allow a small business client to gradually transition into retirement through a sale of the business to his employees while deferring recognition of any gain on the sale far into the future.
Read the full analysis of Professor William Byrnes and Robert Bloink at Think Advisor !
Authoritative and easy-to-use, 2014 Tax Facts on Insurance & Employee Benefits shows you how the tax law and regulations are relevant to your insurance, employee benefits, and financial planning practices. Often complex tax law and regulations are explained in clear, understandable language. Pertinent planning points are provided throughout.
Organized in a convenient Q&A format to speed you to the information you need, 2014 Tax Facts on Insurance & Employee Benefits delivers the latest guidance on:
- Estate & Gift Tax Planning
- Roth IRAs
- HSAs
- Capital Gains, Qualifying Dividends
- Non-qualified Deferred Compensation Under IRC Section 409A
- And much more!
Key updates for 2014:
- Important federal income and estate tax developments impacting insurance and employee benefits including changes from the American Taxpayer Relief Act of 2012
- Concise updated explanation and highlights of the Patient Protection and Affordable Care Act (PPACA)
- Expanded coverage of Annuities
- New section on Structured Settlements
- New section on International Tax
- More than thirty new Planning Points, written by practitioners for practitioners, in the following areas:
- Life Insurance
- Health Insurance
- Estate and Gift Tax
- Deferred Compensation
- Individual Retirement Plans
Plus, you’re kept up-to-date with online supplements for critical developments. Written and reviewed by practicing professionals who are subject matter experts in their respective topics, Tax Facts is the practical resource you can rely on.
Posted in Insurance, Pensions | Tagged: Employee stock ownership plans, ESOP, Retirement planning | 1 Comment »
The next hot annuity for clients is ?
Posted by William Byrnes on January 20, 2014
As clients have begun to feel the shifting winds with respect to the general economy, the annuity market is now undergoing its own type of evolution.
While products that tie fluctuations in an annuity’s cash surrender value to prevailing market interest rates may have seemed unacceptably risky to most clients just a few months ago, changes in today’s interest rate environment now have clients flocking to find these features.
Annuities with market value adjustment (MVA) features may be the next hot product for clients looking to beat the return on other conservative investment products, so read the full analysis of this emerging trend by Professor William Byrnes and Robert Bloink at Think Advisor !
ThinkAdvisor.com supports the professional growth and vitality of the Investment Advisory community, from RIAs and wealth managers of all kinds, to independent broker-dealer and wirehouse representatives. We provide unparalleled access to the knowledge, information and critical resources they need to succeed at every stage in their career, including professional development, education and certification, industry news and analysis, reference tools and services, and community networking opportunities.
Posted in Insurance, Pensions, Retirement Planning, Wealth Management | Tagged: Brokerages, Business, Collective investment scheme, Financial services, Investing, Investment, Investment Advisory, Life annuity | Leave a Comment »
The benefits to clients from the deferred income annuity sales boom
Posted by William Byrnes on September 24, 2013
When it comes to lifetime income planning, clients are always looking for the latest and greatest strategy to ensure that their income needs will be met during retirement.
Deferred income annuities are finally experiencing a dramatic growth spurt in the market, which has motivated insurance carriers to design products with features that allow each product to be tailored to meet the individual client’s needs. As the number of carriers offering deferred income annuities expands, a corresponding boost in client demand is expected — especially when clients discover that they can find the income features they have come to expect from an annuity product, but with a level of flexibility in required contributions and income options unique to the deferred income annuity market.
Read William Byrnes and Robert Bloink’s full analysis of this boom in the sales of deferred income annuities at LifeHealthPro: http://www.lifehealthpro.com/2013/09/11/the-benefits-to-clients-from-the-deferred-income-a
Posted in Pensions, Retirement Planning, Uncategorized, Wealth Management | Tagged: annuities, Annuity, Business, Deferred income, Financial services, insurance, Life annuity, Retirement | Leave a Comment »
Post-Retirement Health Care: A Quarter-Million-Dollar Dilemma
Posted by William Byrnes on December 3, 2012
After expenses covered by Medicare are taken into account, many of your clients retiring this year are likely to incur about $240,000 per couple in out-of-pocket health care expenses during retirement. … You may be able to alleviate the retiree health-expense problem by using guaranteed income annuities or life insurance alternative funding solutions.
Posted in Insurance, Pensions, Retirement Planning, Wealth Management | Tagged: life insurance, medical expenses, Retirement planning | Leave a Comment »
When Clients Get Lump-Sum Pension Offers, What to Advise?
Posted by William Byrnes on November 30, 2012
An increasing number of your clients are facing the novel possibility of choosing a lump sum payout from their pensions instead of the traditional annuity option. See the full article at –http://www.lifehealthpro.com/2012/08/16/when-clients-get-lump-sum-pension-offers-what-to-a
Posted in Insurance, Pensions, Taxation, Wealth Management | Tagged: Life annuity, Pension, Retirement, Retirement planning | Leave a Comment »
Preparing Clients for the Reality of PPACA’s Investment Income Tax
Posted by William Byrnes on November 26, 2012
… the PPACA provisions proposing an additional 3.8 percent tax on investment income will shortly become effective … and your high-income clients will need advice on how to reposition their investments today to minimize its effect. Read the full article at http://www.lifehealthpro.com/2012/07/19/preparing-clients-for-the-reality-of-ppacas-invest
Posted in Pensions, Retirement Planning, Taxation | Tagged: Patient Protection and Affordable Care Act, PPACA, tax | Leave a Comment »
my newest book: 2013 Tax Facts on Insurance & Employee Benefits
Posted by William Byrnes on November 21, 2012
http://www.nationalunderwriter.com/2013-tax-facts-on-insurance-employee-benefits-269.html
Organized in a convenient Q&A format to speed you to the information you need, 2013 Tax Facts on Insurance & Employee Benefits delivers the latest guidance on:
- Estate & Gift Tax Planning
- Roth IRAs
- HSAs
- Capital Gains, Qualifying Dividends
- Non-qualified Deferred Compensation Under IRC Section 409A
- And much more!
Key updates for 2013:
- Enhanced explanation of the Disclosure Regulations for Retirement Plan Service Providers
- Expanded section on the taxation of annuities
- More than 30 new Planning Points, written by practitioners for practitioners, in the following areas:
- Life Insurance
- Health Insurance
- Federal Income Taxation
- Estate Taxation
Plus, you’re kept up-to-date with online supplements for critical developments.
Posted in Estate Tax, Pensions, Retirement Planning, Taxation, Wealth Management | Tagged: Capital gain, Deferred compensation, estate planning, Internal Revenue Code section 409A, life insurance, Pension, Roth, Roth IRA, tax | Leave a Comment »
The ticking estate tax time bomb
Posted by William Byrnes on November 21, 2012
For your clients who have been playing the wait-and-see game in estate planning this year, the time for waiting is over. Absent congressional action, the current $5.12 million exemption will revert to $1 million in less than three months, and the current 35% maximum estate tax rate will jump to 55%. The entire article is available at http://www.lifehealthpro.com/2012/10/17/the-ticking-estate-tax-time-bomb-less-than-90-days
Posted in Estate Tax, Pensions, Retirement Planning, Taxation, Trusts, Wealth Management | Tagged: estate planning, Inheritance tax, tax, Tax exemption | Leave a Comment »
How New Deferred Annuities Provide Income Early in Retirement
Posted by William Byrnes on November 19, 2012
…insurance companies have begun building annuity products in a variety of shapes and sizes, and the latest crop of deferred income annuity products could pave the way for clients seeking to maximize retirement income security in the years leading up to retirement. Read the full article on AdvisorOne – http://www.advisorone.com/2012/11/08/how-new-deferred-annuities-provide-income-early-in
Posted in Estate Tax, Pensions, Retirement Planning, Taxation, Wealth Management | Tagged: annuities, Financial services, insurance, Life annuity, Pension, Retirement, tax | Leave a Comment »
Wealth Managers Offering Trustee Services
Posted by William Byrnes on February 8, 2011
Recently some wealth managers have established trustee services with regards to retirement accounts. It’s a good fit, generally, when the wealth manager can offer clients information regarding deductible contributions to a retirement account, and further act as a fiduciary vis-à-vis trustee of those funds.
What are the basic requirements in order to act in the capacity as a trustee for IRA and other retirement account purposes?
First, an Individual Retirement Account (IRA) must be a trust created or organized in the United States for the exclusive benefit of an individual or his beneficiaries. Such trust must be maintained at all times as a domestic trust in the United States. The instrument creating the trust must be in writing.
Secondly, the trustee of an IRA trust may be a person other than a bank if the person demonstrates to the satisfaction of the Commissioner of the Internal Revenue Service that the manner in which the person will administer trusts will be consistent with the requirements of the tax code. The person must submit a written application including the information discussed below. Read further at AdvisorFYI
Posted in Pensions, Trusts | Tagged: Individual Retirement Account, Internal Revenue Service, Retirement, Roth IRA, tax, Trust law, Trustee, United States | Leave a Comment »
Nonqualified Pension Plans and Life Insurance
Posted by William Byrnes on November 18, 2010
Why is this Topic Important to Wealth Managers? Provides information on one additional planning tool that many wealth managers find useful for affluent clients who own a small business. Gives an overview of the nonqualified plans as well as proving a common use of life insurance to fund plan obligations well into the future.
Simply a nonqualified pension plan is a retirement plan that does not meet the requirements under the tax code and federal employment law to be considered qualified, and therefore the nonqualified plan is treated differently for tax purposes. [1]
What are some of the advantages of using a nonqualified plan over a qualified retirement plan? [2]
- Flexibility and selectivity—because the plan is not subject to requirements under the qualified plan rules, employers have much more control in terms of who may be included and the varying terms of each individual participant.
- Vesting and contingencies—nonqualified plans allow for the employer to exclude all amounts not met by vesting conditions or contingencies that the employee must achieve to obtain the benefit. Say for example, that the retirement funds become available to the employee after 10 years of faithful service to the company. If the employee does not work for 10 years, no benefits have thus accrued and the employee has no benefit under the plan.
- Cost savings through minimal reporting requirements—since nonqualified plans do not usually fall within major regulatory scope of qualified plans, the cost to administer these plans is generally less than some alternatives.
How are nonqualified plans treated for tax purposes? Read the entire blogticle at AdvisorFYI.
Posted in Insurance, Pensions | Tagged: Business, Employment, Financial services, Human Resources, life insurance, Pension, tax, United States | Leave a Comment »