National Association of Insurance and Financial Advisors

Democrats Float New Tax Proposals Mostly Focused on “Tax the Rich”

November 15, 2019

Democrats are bursting with new tax ideas, most of them targeting high-income individuals. Virtually all the candidates for the Democratic nomination for President are proposing tax increases, including wealth taxes and hikes in the corporate and top individual income tax rates. By contrast, President Trump is floating the possibility of further tax cuts.   Among the tax proposals offered in the past few weeks are:   Increase the top individual tax rate—usually back to the pre-Tax Cu...

Senate Rejects Roll-Back of State STLD Health Plan Rules

November 15, 2019

On October 30, the Senate rejected Democrats’ effort to roll back the Administration’s 1332 waiver rule that allows states to permit expanded short-term limited duration (STLD) health insurance. The vote came under the auspices of the Congressional Review Act (CRA), a process that allows Congress to undo a regulation, within specified time constraints, that it does not like. A CRA vote requires only a simple majority to succeed.   The Senate voted 43 to 52 against the CRA motion brought b...

DOL Proposes Expanded Ability to Use E-Disclosure—

November 15, 2019

On October 23, the Department of Labor (DOL) proposed a new rule (RIN 1210—AB90) that would expand employers’ ability to meet certain of their retirement plan disclosure obligations via electronic means. The permitted e-disclosure would be subject to a rule requiring employers to allow plan participants to receive their disclosure notices on paper, rather than via email or on a website.   The rule proposes a new additional safe harbor that allows employers to send required disclosure docu...

IRS Proposes Revised RMD Calculations Based on Increased Longevity

November 15, 2019

On November 7, the Internal Revenue Service (IRS) proposed a new rule that changes how required minimum distributions (RMDs) are calculated based on actuarial increases in life expectancy. RMDs are required, starting at a plan participant’s age 70 ½, from 401(k)s, 403(b)s, traditional IRAs, and other tax-favored retirement savings plans.   The changes are expected to result in smaller RMD requirements spread out over a longer number of years. For example, according to the IRS proposal (RE...

Retirement Plan Contribution Limits Updated

November 15, 2019

On November 6, the Internal Revenue Service (IRS) announced inflation-adjusted contribution and benefits limits for pension and other retirement savings plans. They are:   401(k), 403(b) and most 457 plan contribution limits will go from $19,000/year to $19,500/year.   Maximum catch-up contributions (for those over age 50) will rise from $6,000/year to $6,500/year.   The limit on an annual benefit under a defined benefit (DB) plan will go from $225,000 to $230,000.   ...