National Association of Insurance and Financial Advisors

CMS Proposes Significant Changes to ACA Regulations to Stabilize and Improve the Individual and Market

November 15, 2017

On October 13, CMS proposed a series of changes to current Affordable Care Act regulations intended to give states increased flexibility in managing their health insurance markets, increase consumer choice, and reduce regulatory burdens on carriers as well as agents and brokers.  Below are some of the regulatory changes:   Medical Loss Ratio :  CMS proposes a series of changes to better enable states to obtain from CMS adjustments to current MLR requirements as it relates to the individua...

Ways & Means Approves Tax Reform Bill that Increases Life Company Taxes; Excludes New Taxes on Life/Health Insurance, Retirement Savings

November 15, 2017

On November 9 , the House Ways & Means Committee approved a bill, H.R.1, which imposes new tax liability on life insurance companies, but does not increase taxes on life/health insurance products or retirement savings. The full House is likely to consider the bill, The Tax Cuts and Jobs Act (TCJA) prior to Thanksgiving.   After four days of mark-up (the process by which a bill is readied for a floor vote), the Ways & Means Committee made significant changes to the bill as it was introduc...

Senate Finance Committee Releases Different Tax Reform Plan

November 15, 2017

Sen. Orrin Hatch (R-UT) released a tax reform plan on November 9 th , with subsequent modifications released on November 14 th that differs from the tax plan approved by the Ways & Means Committee . The Senate plan does not impose new taxes on life/health insurance or retirement savings, but does increase life insurance company taxes, largely through a substantial change to deferred acquisition cost (DAC) rules.   The modified Senate plan makes permanent the corporate tax rate reduction...

After Secure Family Fly-In, Tax Writers Make Significant Positive Changes to House Tax Reform Bill

November 15, 2017

NAIFA members who have close relationships with key Representatives and Senators came to Washington on November 7 to lobby Congressional leaders and tax writers on the emerging tax reform bill. This was part of the Secure Family Coalition fly-in. Their influence—at over 115 meetings—became clear on November 9 when the Ways & Means Committee approved a tax reform bill that favorably resolved many of the life insurance industry’s issues.   Constituent lobbyists met with Members of the House...

House Tax Reform Bill Includes Several “Small” Retirement Savings Changes

November 15, 2017

The House tax reform bill approved by the Ways & Means Committee on November 9 does not limit pre-tax contributions (within overall limits) to 401(k) plans (“Rothification” proposal), but it does include several small, largely positive changes to retirement savings plan rules.   The Tax Cuts and Jobs Act (TCJA), H.R.1, includes the following provisions: The bill allows plan participants to take hardship distributions (where the employer plan allows them) from account earnings and emplo...