National Association of Insurance and Financial Advisors

NAIFA President Testifies at DOL on Fiduciary Proposal

August 18, 2015

Accompanied by one of her small business clients, NAIFA President Juli McNeely testified on August 11 at the Department of Labor (DOL) hearings on the agency’s proposed changes to fiduciary rules governing financial advice to retirement savers. NAIFA outlined to DOL the changes to the new rule itself and to the best interest contract and annuity/mutual fund prohibited transaction exemptions (PTEs) that are needed to make the proposal workable. Without the changes, the proposal would result in...

Congress Enacts Estate Tax, Pension Provisions in HTF Extension Bill

August 18, 2015

On July 31, President Obama signed into law legislation enacted by Congress that reauthorizes and funds the Highway Trust Fund (HTF) until October 29, 2015. The new law contains two provisions of some interest to NAIFA members:   The new law requires estates to report the value of the estate’s assets as of the date of the decedent’s death. This is intended to prevent differing valuations between estates and heirs and was estimated to raise some $1.5 billion over 10 years. Also...

Members of Congress Tell DOL to Protect Middle-Income Retirement Savers’ Access to Affordable Professional Investment Advice

August 18, 2015

Several members of Congress have written to Department of Labor (DOL) Secretary Tom Perez to urge the agency to make sure their new fiduciary proposal does not limit retirement savers’ access to affordable professional investment advice. Each letter highlighted the need to avoid rules that would limit or in some instances eliminate access to professional affordable investment advice by retirement savers of modest means. The most recent such letters include:   A letter by Sens. Jon Te...

Congress Punts on Tax Extenders until after August Recess

August 18, 2015

Congress left Washington for the six-week in-district work session without acting on the tax extenders package (S.1946). However, lawmakers vow they will move extension of the package of more than 50 expiring tax rules this fall.   Included in the package are two provisions of considerable interest to NAIFA members. They are:   Section 179 expensing:  This special rule expired at the end of 2014 and must be reinstated and extended for 2015 and years going forward. Currently, the ...

DOL Secretary Perez Promises DOL Will “Clear a Path” for State-Based Retirement Plans

August 18, 2015

Department of Labor (DOL) Secretary Tom Perez said in a July 13 DOL blog post that President Obama has directed his agency to “clarify the path forward” for state-based retirement savings initiatives. The coming DOL rule will address state plan requirements to automatically enroll employees and for employers to offer coverage to workers without current access to retirement savings plans through their jobs, he said.    “Many states have been active in this space, creating safe and secure s...