National Association of Insurance and Financial Advisors

DOL Releases Fiduciary Proposal

April 17, 2015

The Department of Labor re-proposed a fiduciary regulation on April 14 that would drastically increase the number of retirement advisers under a legal fiduciary duty to their clients. The almost 450-page proposal is complex, and NAIFA is currently analyzing it to determine exactly how it will impact broker-dealers, registered representatives, and their clients. The rule would create a new prohibited transaction exemption, called the “best interest contract exemption.” The DOL claims the co...

Congressional Budget Sets Up ACA Repeal-and-Replace Effort; Allows for Tax Reform

April 17, 2015

Late last month, both the House and Senate approved their own versions of a fiscal year (FY) 2016 Congressional budget.  Both allow for filibuster-protected repeal and replacement of the health reform law, and both call for tax reform. The two different budgets will be reconciled into a unified spending-and-revenue blueprint, probably by the end of April.   Both chambers’ budgets reflect majority party (GOP) priorities—neither drew any minority (Democratic) support. This is the usual outc...

Ways and Means Committee Approves Estate Tax Repeal Bill

April 17, 2015

On March 25, on a 22-10 party-line vote, the House Ways and Means Committee approved H.R.1105, a bill that would completely repeal the federal estate tax. The bill, while it retains the gift tax, also lowers the top gift tax rate from 40 percent to 35 percent.   H.R. 1105, sponsored by Rep. Kevin Brady (R-TX) and cosponsored by 135 House colleagues, will likely come to the full House for a vote on or around April 15, although that date could slip. According to the Joint Committee on Tax...

Ways & Means Chairman Predicts a Business Tax Reform Bill by October

April 17, 2015

The House’s key tax writer, Ways & Means Committee chairman Rep. Paul Ryan (R-WI), thinks Congress may move a business tax reform plan by October of this year. Rep. Ryan is in near-daily negotiations with Treasury Secretary Jack Lew on the contours of a business tax reform plan. Details on the progress of those negotiations are sparse, but several key elements have emerged. They include:   According to Chairman Ryan, the plan would have to result in pass-through business owners p...

NAIFA Submits Comments to Finance Committee Tax Reform Working Group on Savings & Investment

April 17, 2015

The Senate Finance Committee Tax Reform Working Group on Savings & Investment has called for stakeholder comments on savings and investment tax issues by April 15. In response, NAIFA submitted comments on the importance of current tax rules to middle America’s ability to save adequately for retirement, and the importance of maintaining current tax rules for life insurers and for the products they provide to help families mitigate risk and plan for their financial security.   NAIFA’s comme...