National Association of Insurance and Financial Advisors

Congress Returns for Pre-Election Sprint to Fund Government

September 13, 2016

Congress came back September 6 from its almost two-month summer recess to face just one “must do” piece of legislation, a bill to fund the government after this fiscal year (FY 2016) ends September 30. Some kind of new spending bill is required to avert a government shut-down on October 1. In play in this initiative will be policy riders—provisions that deny funding to federal agencies for specific programs and activities. Among the policy riders likely to be debated is one to halt the new De...

Key Senator Proposes Retirement Savings Plan Changes

September 13, 2016

On September 8, the Democrats’ leader on the Senate Finance Committee, Sen. Ron Wyden (D-OR), released a discussion draft proposal that would change IRA and tax-favored retirement savings plans rules. Specifically impacted would be mega IRAs, stretch IRAs, minimum required distribution (MRD) rules, and 401(k) matching contribution rules.   The Retirement Improvements and Savings Enhancements (RISE) Act would: Make the Saver’s Credit refundable, but require that the credit be deposited ...

House Financial Services Committee Plans to Mark Up Financial Services Reform Bill

September 13, 2016

The House Financial Services Committee will mark up H.R.5983, its chairman’s financial services reform bill. The Financial CHOICE Act, authored by the committee’s chairman, Rep. Jeb Hensarling (R-TX), includes provisions impacting the Security and Exchange Commission’s (SEC’s) pending regulatory project that could impose a uniform fiduciary duty on broker-dealers as well as registered investment advisors.   The mark-up is due to start on September 15, and could take multiple days to finis...

Congress Considers ACA Penalty Modifications, Other ACA Legislation

September 13, 2016

On September 8, the House Ways & Means Committee approved a bill that would waive Affordable Care Act (ACA) individual penalties for those whose health insurance was lost when their ACA co-op failed. The bill, H.R.954, was offered by Rep. Adrian Smith (R-NE). Other penalty-waiving bills are pending in the Senate, and a bill to move the medical expense deduction threshold back to 7.5 percent awaits a scheduled House vote.   According to Ways & Means Republicans, 23 ACA-authorized co-ops, a...

Treasury Finalizes DB Plan Lump Sum/Annuity Retirement Payment Rules

September 13, 2016

On September 8, the Treasury Department finalized rules (T.D.9783, RIN:1545-BJ55) that allow a retiree to take his/her defined benefit (DB) plan retirement payments in part as a lump sum and in part as a stream of lifetime annuity payments.   The now-final rules contain one significant change from the rules as proposed—instead of three mechanisms by which a DB plan can provide bifurcated (partial lump sum/partial annuitized) benefits, the final rules allow for only two. Generally, the tax...