National Association of Insurance and Financial Advisors

DOL Final Fiduciary Rule Imposes Best Interest Standard on Advisors Working with Retirement Savers

April 15, 2016

On April 6, the Department of Labor (DOL) released its final new fiduciary rule. Changes made in the final rule address several of the concerns expressed by NAIFA—we are appreciative of the degree to which DOL listened to NAIFA input and responded positively to it. Despite NAIFA’s influence, and the improvements in the regulation from its earlier draft, we realize that the DOL rule is far from perfect. It is also very complex. NAIFA experts continue to analyze it, and will watch for any issue...

Bipartisan Senate Duo Introduces Expanded IRA-to-Charity Gift Bill

April 15, 2016

Two key Senators on the tax-writing Finance Committee have introduced NAIFA-supported legislation to expand the rule that allows limited direct tax-free gifts from an IRA to a charity. Introduced on April 5 by Sens. John Thune (R-SD) and Ron Wyden (D-OR), S.2750 would allow people over age 70 ½ to make direct tax-free gifts of up to $100,000 to donor-advised funds (DAFs). This is an expansion of the current rule, which limits the direct-from-an-IRA-to-a-charity rule to public charities. The b...

DOL Cites Lack of Consensus for Delay in Lifetime Income Illustration Work

April 15, 2016

While the Department of Labor (DOL) is committed to issuing regulations for showing workers how much their retirement savings would generate in lifetime retirement income, how to do it is proving difficult. Lack of consensus on the “how” is slowing DOL’s rulemaking initiative, a key DOL official said.   On April 5, speaking at the Defined Contribution Institutional Investment Association’s annual public policy forum, DOL’s Phyllis Borzi, head of the agency’s Employee Benefits Security Adm...

Congressional Tax Reform Background Work Ratchets Up

April 15, 2016

The House Ways & Means Committee is holding hearings on multiple tax reform issues. The effort is in some ways a repeat of the committee’s work leading up to the 2014 Camp tax reform proposal, but in other ways is an agenda-building effort in preparation for the November elections. The hearings include one last month on consumption-based tax reform and two this month on income-based tax reform and on tax rules governing health insurance.   On March 22, the Committee’s Subcommittee on Tax ...

SEC Chair Warns SEC Fiduciary Standard Might Not Mesh with DOL Rule

April 15, 2016

On March 22, Securities and Exchange Commissioner (SEC) chair Mary Jo White told a House Appropriations Subcommittee that if the SEC promulgates a uniform standard of care (a fiduciary rule for non-retirement financial advising), it might not match up with the rule just finalized by the Department of Labor (DOL). White said the SEC would try to “make them (the SEC and DOL rules) land identically…but they’re separate agencies with separate statutory mandates.” White noted that she supports a u...