Tax, Wealth, and Risk Management Graduate Program Blog

Professor William Byrnes (Texas A&M University School of Law)

Posts Tagged ‘Wealth’

Tax Facts Intelligence (July 30 – Aug 5)

Posted by William Byrnes on August 5, 2026


Weekly newsletter of Prof. William Byrnes & Robert Bloink of Texas A&M Law’s wealth management program: full articles available on ThinkAdvisor TaxFacts (https://www.thinkadvisor.com/tax-facts/)

1. IRS Fixes 1035 Life Insurance Exchange Trap: IRC Section 1035 allows taxpayers to trade life insurance contracts and annuities for new contracts without creating an immediate taxable event. We discuss the new IRS regulations that provide clarity with respect to exchanges of life insurance contracts that qualify for nonrecognition treatment.

2. IRS Announces 2027 Contribution Threshold for Premium Tax Credit Eligibility Purposes.

3. Trump Accounts Shine Spotlight on Kiddie Tax Rules. Now that Trump accounts have officially gone live, it’s important to understand the potential application of the so-called kiddie-tax when the beneficiary becomes entitled to withdraw Trump account funds or execute taxable Roth conversions.

4. Byrnes & Bloink Debate: Should Congress deny tax benefits for retirement savings above $10 million?

5. DOL Clarifies How Mid-Day Commuting is Treated for FLSA Purposes.

Tax Facts Intelligence sample of articles from July newsletters

1. IRS Raises Standard Mileage Rates for Remainder of 2026!

2. IRS Confirms QCD Code Y Optional in 2026. Code Y was introduced in 2025 to give taxpayers a method for reporting Qualified Charitable Distributions (QCDs) to the IRS and, thus, avoiding taxable distribution treatment upon failure to report QCDs.

3. SECURE Act 3.0: What Might Be Included? We report what Congress is bipartisan negotiating.

4. NLRB Stance on Non-Competes Flips Again. Most recently, the National Labor Relations Board (NLRB) Division of Advice issued a memorandum expressing the current General Counsel’s view on the use of post-employment non-compete agreements, flipping the script in favor of employers.

5. Debate: Should Congress be barred from trading in individual stocks? Or is disclosure enough?

  1. Illinois Enacts First State-Level Digital Asset Tax. Illinois has created the nation’s first explicit tax on digital assets. Read the full newsletter and articles on https://www.thinkadvisor.com/tax-facts
  2. Understanding the Interaction Between Unpaid FMLA Leave and Paid Time Off. Many employers wonder whether they may require employees to use any accrued paid time off (PTO) before accessing FMLA leave.
  3. IRS Announces Gift Tax Safe Harbor for Trump Account Contributions. Trump account contributions do not qualify for the annual gift tax exclusion (currently, $19,000).
  4. Underappreciated Solo 401(k)s: A Game-Changer for the Self-Employed. There’s no question that the labor market has shifted in massive ways in the wake of the COVID-19 pandemic. By this point, many pre-pandemic common-law employees have no plans to return to more traditional employment settings, as they’ve found success in careers that operate entirely under their own control. Many self-employed and contract workers are at the point where they’re beginning to amass significant wealth and increasingly looking for ways to shelter larger portions of their income from taxation. Many of these so-called “gig” economy entrepreneurs have historically taken a DIY approach to their retirement income planning. In today’s market, fueled in part by President Trump’s executive orders that allow traditional retirement plans to invest in alternative assets, there is significant opportunity for advisors to introduce these entrepreneurs to the benefits of the solo 401(k).
  5. Debate: Whether the current retirement plan startup tax credit is meaningful enough to encourage small business owners to adopt plans? William Byrnes argues yes, and Robert Bloink counters no. 

1. Self-Certification for SECURE Act 2.0 Hardship Withdrawal Expansions. The SECURE Act 2.0 significantly expanded the options for taking penalty-free withdrawals from tax-preferred retirement accounts. Read the newsletter here.

2. Federal Court Finds RSUs Exempt from “Regular Rate” for FLSA Overtime Purposes. A federal court in California ruled that Apple was correct in excluding restricted stock units (RSUs) when calculating overtime under the Fair Labor Standards Act (FLSA).

3. Tax Court Holds Staking Rewards Includable in Gross Income on Receipt. In the first opinion addressing the issue, the U.S. Tax Court held that cryptocurrency staking rewards must be included in gross income upon receipt.

4. Trump Accounts – A New Employee Benefit? As of July 4, 2026, Trump accounts are officially live. Parents, grandparents, and even employers can fund these kiddie IRAs. As the rules evolve, employers and advisors should pay close attention to opportunities to provide a valuable, potentially income-tax-deferred, employment benefit to help business clients attract and retain top talent as flexible and diverse benefit programs become more in demand. Full article is here.

5. Debate about HSAs Healthcare Affordability? William Byrnes and Robert Bloink debate opposing political viewpoints about whether HSAs are the answer for making healthcare more affordable overall. The full debate is here.

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Using IRS income stats for where to locate your financial planning firm

Posted by William Byrnes on August 7, 2014


IRS logoCombing through the IRS’ income tax data by county and by zipcode can provide valuable insight for, by example, where to locate a business that depends on foot traffic, where to live (for a well funded local public school) and where to direct marketing efforts for financial planning and wealth management.

Take for instance California.  Some counties have substantially more tax filers in the category above $200,000 income, than others.  The entire state has 802,100 tax filers reporting $200,000 and greater income, 83% being married couples (665,110).   That’s almost twice New York State’s with just 413,720 (of course, to understand New York City, I would need to add in the metropolitan stats from the tri-state Connecticut and New Jersey suburbs of the City).  However, Texas beat out New York at 433,150 high earner returns, whereas Florida only had 278,560.

Read my analysis by country and metropolitan area in my International Finance Professor Blog article.

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Are the Mass Affluent Missing from Your Client Profile?

Posted by William Byrnes on July 19, 2011


Individuals in the fastest growing class of investors—the mass affluent—need your advice.  According to a recent report, there is a void in representation by financial professionals this group. As a corollary, they lack confidence in their ability to meet their financial goals, making them desirable candidates for professional services.

The mass affluent are investors occupying the upper tier of the mass market—the biggest group of consumers. But “mass affluent” isn’t just a synonym for “upper middle-class”; it is a subset of the upper middle-class with $50,000 to $250,000 in “investable assets.”

Depending on your career trajectory, the mass affluent can be resourceful in establishing the foundation for a successful practice. A majority (55 percent) of the mass affluent believe they will be wealthy one day. Although only a small number of the mass affluent will move into high-net-worth territory, you can get in on the ground floor of the upward career trajectory of those who will. Read this complete analysis of the impact at AdvisorFX(sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).

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New Report Shows Room for Growth for Wealth Managers

Posted by William Byrnes on December 2, 2010


New York Stock Exchange on Wall Street in New ...

Image via Wikipedia

According to a recent report by Javelin Strategy and Research (California); “[a]lthough the recent ‘Great Recession’ has caused millions of Americans to tighten their belts financially, nearly one out of five consumers are financial sleepwalkers”—those who do not manage their personal finances. [1] That’s right; at least 20% of Americans are not currently using wealth managers to manage their personal finances. The report states that the rate is more than double that of 2009. [2] This presents a vast opportunity for wealth managers to expand their market share.

The United States Department of Labor project that personal financial advisors are estimated to grow by 30 percent over the 2008–18 period.  “Growing numbers of advisors will be needed to assist the millions of workers expected to retire in the next 10 years.” [3] Further, “[a]s more members of the large baby boom generation reach their peak years of retirement savings, personal investments are expected to increase and more people will seek the help of experts.” [4]

Moreover, there is a trend in corporate America to replace “traditional pension plans with retirement savings programs, so more individuals are managing their own retirements than in the past,” creating additional opportunity for wealth managers. [5] In addition, as medical technology continues to advance and people on average, live longer, the need for additional financial planning arises.

The average compensation for wealth managers is around $89,920 to $110,130 for those marketing insurance products and services as well as other financial investments. [6] New York has the most wealth managers in terms of total numbers. [7] In addition, New York wealth managers made on average $146,460, the most from any state. [8] Read the entire article at AdvisorFYI.

For previous blogticles covering the wealth management industry, see the series beginning The Future of Wealth Management

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