National Association of Insurance and Financial Advisors

IRS Extends Discrimination Rule Relief for Closed DB Plans

December 16, 2019

 On November 13, the Internal Revenue Service (IRS), in Notice 2019-60, extended for another year the relief from discrimination rules needed by defined benefit (DB) plans that are closed to new employees and thus become increasingly top-heavy as the years go by. This is an extension from the original relief provided in Notice 2014-5.   Generally, if a DB plan meets specified eligibility conditions, “the plan will be deemed to have satisfied certain of the nondiscrimination testing requir...

The Federal Advisory Committee on Insurance (FACI) meets at Treasury

December 16, 2019

On December 5, the Federal Advisory Committee on Insurance (FACI) met at the Department of Treasury in Washington, DC. Topics of discussion included: (1) the recent activities and priorities of the Federal Insurance Office (FIO); and (2) updates from the subcommittees on FIO’s International Work, Availability of Insurance Products, and Addressing the Protection Gap through Public-Private Partnerships and Other Mechanisms. Steven Seitz (Director, FIO) and Bimal Patel (Assistant Secretary of...

Tax-Writing House Democrat Introduces Estate Tax Bill

November 15, 2019

On October 24, Rep. Jimmy Gomez (D-CA), supported by 37 cosponsors, introduced legislation to expand the estate tax. Rep. Gomez, a member of the tax-writing Ways & Means Committee, characterizes his bill as a way to address income inequality.   The bill, H.R.4857, is titled the “For the 99.8% Act.” A companion bill, S.309, introduced by Sen. Bernie Sanders (I-VT), is pending in the Senate.   The bill would take the top estate tax rate to 77 percent, on estates valued at over $1 billio...

Senate Tries—and Fails—Again to Enact SECURE Act—

November 15, 2019

On November 7, the Senate again tried to pass H.R.1994, the SECURE Act, by unanimous consent (UC). Again, objections (largely unrelated to the legislation itself) were heard, thus preventing enactment. A letter from 51 NAIFA members from each State and the District of Columbia, representing a wide range of metropolitan and rural areas and businesses large and small, went to Senate leadership, urging enactment. And NAIFA signed on to a multi-industry letter to Senators asking them to enact the...

Congress Scrambling to Fund the Government amidst Impeachment Stress

November 15, 2019

Congress is finding it difficult to find the compromises that will allow for a government funding bill that can also change policy. To date, none of the 12 required appropriations bills have passed. And Congress has all but thrown in the towel on the effort to do a funding bill prior to the November 21 deadline. So, it appears that another continuing resolution (CR)—with no policy changes—will be needed, or the government will shut down.   The House has passed 10 of the 12 regular-order a...