Interest Rate Appeal: Market Value Adjusted Annuities Surge
As clients have begun to feel the shifting winds with respect to the general economy, the annuity market is now undergoing its own type of evolution.
Trending—Universal Life Income Riders
A new product feature has emerged to help clients looking to supplement retirement income or protect against the risk of outliving their assets.
States Taxing IRAs at the Source, Despite the Move
For many clients today, post-retirement relocation has become the ultimate goal.
IRS Releases Unexpected Investment Tax Rules
The IRS has finally given high-income taxpayers a break with the release of the final regulations governing the new 3.8 percent tax on net investment income.
The Disappearing Tax Break: Reduce the Tax Bite before It’s Too Late
The days of relying on Congress to automatically renew expiring tax provisions—including those governing the tax-free IRA charitable rollover and bonus depreciation—might finally be coming to a close.
Avoid the Medicaid Spend-Down: Court Clears Path for Annuities
The winds are finally changing for Medicaid recipients, as evidenced by a recent court case that has eased state-imposed restrictions on the use of annuities.
New Crop of Hybrids Ushers in the Future of LTCI
Changes in the long-term care marketplace have recently inspired a new crop of products that can alleviate some concerns of clients who are already feeling the pinch of a persistently low interest rate economy.
IRS Gives Double Tax Benefits of Health FSAs a Boost
Many clients are gearing up for a potential reduction in covered health benefits in 2014 as insurers have begun cancelling coverage in anticipation of the Affordable Care Act effective date.
Can a Twitter Freeze Slash Your Client’s Tax Bill?
Although it might seem that your clients have little in common with the inside executives at Twitter, the company’s recently released initial public offering documents would indicate otherwise.
Tax Court Takes the Bite out of the Three-Year Bringback Rule
Reversing course from a previous line of cases, the Tax Court recently blessed a valuation strategy for lifetime gifts that can be used to reduce overall estate tax liability.
Deferred Annuities: Pension Building Blocks for the Next Generation
Many advisors are accustomed to selling deferred annuity products to older clients. However, insurance carriers have taken steps to break free of this typical market by changing product cost structures to appeal to a much younger client base.
Indexed Variable Annuities—A Product Curveball
Low interest rates may have created a challenging environment for annuity carriers in recent years, but many clients remain skeptical about the prospect of returning to the more volatile equity markets. Indexed variable annuities can represent the perfect solution for these market-shy clients.
ACA Ups the Ante for Small Business Employee Classification
The Affordable Care Act contains a mandate requiring employers with more than fifty full-time employees to provide coverage for those employees or pay a penalty.
Don’t Let Policy Loans Trap Clients in a Transfer for Value Rule Snare
Making a gift of a life insurance policy can prove to be anything but simple for clients who do not know what questions to ask regarding potential tax consequences.
ACA Silver Lining: SHOP Exchange Generates Small Business Tax Incentives
Your small business clients know that the health insurance exchanges set up under the Affordable Care Act are coming, but they may not realize that they create significant benefits for employers in the form of savings beyond the current rules governing deductibility of premiums and eligibility for certain tax credits.
Whole Life—A New Asset Class to Allocate?
Clients who think they’ve seen all that whole life insurance has to offer need to take a closer look—insurance carriers have taken steps to bring whole life products back to relevance in today’s competitive environment.
The Deferred Income Annuity Boom: Retirement Income Security in a Single Package
Your clients are always looking for the latest and greatest strategy to ensure their income needs will be met during retirement.
Secure Retirement in a Decade with a DB(k) Plan
For many baby boomer clients who own small businesses, a new strategy that combines a defined benefit plan with elements of a voluntary 401(k) plan can allow the client to save more than ten times as fast as a traditional plan and with dramatic tax savings.
Next Generation Term Life
Advisors who think they know all there is to know about term life insurance might be surprised to learn that these policies are finally being brought up to speed.
Build Your Own Fully-Funded LTCI Policy with Hybrid Annuities
A relatively new method of securing tax-preferred long-term care benefits has emerged. Hybrid annuity products that combine the estate and income planning features of an annuity with the protection of long-term care insurance are becoming increasingly popular among clients looking for replacement insurance.
1035 an Inherited Annuity?
The constant evolution of investment trends may have your clients wondering what type of value their annuities will offer beneficiaries.
New Annuity Offerings for the Long Haul: Reforming the Annuity Image Problem
Today’s media coverage of the variable annuity market has focused on company buybacks and modifications to existing clients’ product guarantees—a prospect that has many clients feeling more wary than ever about annuity purchases.
The Clock Is Ticking on GRATs
In a low interest rate environment, a grantor retained annuity trust (GRAT) can serve as a powerful estate planning tool to allow your high net worth clients to transfer assets with minimal—and in some cases zero—tax liability.
The Stretch IRA’s Ouster from the Estate Planning Arena –What Clients Need to Know Now
As Congressional budget negotiations over the need for increased tax revenue heat up, some of the tools that your clients have grown accustomed to including in their estate planning strategies are taking center stage once again
Net Unrealized Appreciation Tax Break: Still a Tax Break in 2013?
The tax break provided for net unrealized appreciation (NUA) on 401(k) account distributions once provided a powerful tax savings strategy for clients with large 401(k) balances—allowing some clients to reduce their taxes on these retirement funds by as much as 20 percent.
FASB Proposes Changes to Life Insurance Accounting: Are Higher Premium on the Horizon?
A Federal Accounting Standards Board proposal to change the way companies account for life insurance contracts is gathering steam and may change the way companies reserve for and value policies internally.
Variable Annuity Guaranteed Benefits: Going, Going, Gone?
Clients who have purchased variable annuity products containing lifetime guarantees need to watch their mail in the upcoming weeks and months because a recent study by Moody’s indicates that insurance companies issuing these guarantees will soon be seeking substantial modifications to outstanding contracts.
The End of DOMA: Married in the Eyes of the IRS
By striking down key provisions of the Defense of Marriage Act (DOMA), the Supreme Court has brought about a major change in the way same-sex couples will be viewed in the eyes of the Internal Revenue Service.
SEC Comments Muddy the Waters in Common Fiduciary Standard Debate
The debate over the fiduciary standard that will become applicable to many financial professionals may be coming to a head as the looming deadline for comments on SEC proposals has motivated some advisors to express disapproval over a perceived weakening of the potential standard.
The Not-So-Irrevocable Trust: Unlocking Trust Assets
The “irrevocable” label might have some clients feeling like they’re locked into previously established irrevocable trusts for life, which might not always be the case.
The Affordable Care Act Raises the Stakes for HSAs
The looming deadlines for implementing many key Affordable Care Act provisions have many of your clients wondering how they can cushion the impact of the rising premium costs they fear will accompany them.
In Medicaid Planning, Don’t Surrender Life Insurance—Trade It for Long-Term Care Instead
Your clients who are nearing retirement age might often wonder why they bother maintaining the life insurance policies they’ve funded for years.
The Value of Variable Life Insurance: Surrender Charges and Fair Market Value
The Ninth Circuit recently affirmed the Tax Court’s position on the use of surrender charges in the valuation equation when a nonqualified employee benefit plan that holds a life insurance policy distributes that policy to a taxpayer upon winding up of the plan.
Did Portability Kill the Credit Shelter Trust?
Many clients may have begun to skimp on estate planning this year because the generous $5 million transfer tax exemption has been made permanently portable between spouses. The
Income-Based Premiums Triple the Cost of Medicare under the ACA
For your high net worth and upper middle class clients, Medicare planning has become a critical component of a well-executed retirement income plan.
The Investment Income Tax: Don’t Get Caught in the Passive Activity Trap
Your clients may have mastered the more obvious points of the new 3.8% tax on investment income that became effective this year, but with this complicated set of tax rules, what they don’t know can hurt them.
Time Is Running out for Social Security’s File and Suspend—Cash in Now
Looming changes to the Social Security system meant to shore up its pending insolvency have created a renewed sense of urgency for maximizing Social Security benefits for high net worth clients.
Multiplying Deductible Familial IRA Contributions
With the diverse array of estate planning tools that advisors have in their arsenals today, it might be easy to overlook one relatively simple, tax-advantaged way to pass wealth to the next generation—individual retirement accounts.
Estate Planning Tools in the Administration Budget Proposal’s Crossfire
Estate planners should take note that the administration’s budget plan is soon expected to take aim at some of their most effective planning tools.
The Price of Longevity: When Clients Outlive Their Longevity Insurance
The IRS has recently allowed using qualified pre-tax dollars to purchase longevity annuity contracts.
Navigating the Maze: Social Security, Spouses, and Survivors
Determining Social Security entitlement is often a more difficult piece of the puzzle than anticipated when it comes to helping clients project anticipated retirement income.
Guaranteed Lifetime Income Variable Annuities: Eliminating the Confusion—and the Price Tag
Variable annuities with guaranteed lifetime benefits have become increasingly popular among clients planning for retirement income in recent years.
High-Income Clients Take a Detour to Funding Roth IRAs
There is an alternative route to Roth IRAs for high-income clients looking to minimize their tax burden in retirement.
Pre-Tax Dollars Generate Guaranteed Lifetime Income
Clients today want more in the way of flexibility and control with respect to investment options from their retirement savings accounts, but also more assurances against the possibility of outliving their retirement savings.
Annuities: To Surrender or Not?
Whether they realize it or not, clients considering the surrender of an annuity product have many factors to weigh before determining whether walking away is the wisest course of action, and the scenario is becoming more common each day.
Supplemental Policies Bridge the Emerging Health Coverage Gap
Despite the fact that the employer mandate under the Affordable Care Act has been delayed once again, many clients have already begun to feel the effects of changes to their health coverage in the form of leaner coverage and higher out-of-pocket expenses.
Transition into Retirement Seamlessly with Combo DIA-Variable Annuity
While deferred income annuities have gained a prominent position in the retirement income planning game, the newest entrant into the annuity marketplace is poised to change the way these products operate for good.
IRS Grants Reprieve for Late Portability Elections
Today’s estate tax exemption has created an unexpected problem among clients: failure to take advantage of the portability of a first-to-die spouse’s unused estate tax exemption.
Regulators Shine Spotlight on IRA Rollover Suitability
Threats of heightened regulatory scrutiny have loomed large in the first weeks of 2014, and perhaps no area has received greater attention than the IRA rollover transaction.
Yesterday’s Yields: Secondary Market Annuities Attract Client Attention
Staying ahead of client demands in the annuity product game is no simple feat for even the most informed of financial producers.
Counterintuitive Social Security Strategy Funds and Early Retirement
While it may seem obvious to some advisors that clients should be counseled to delay collecting Social Security in order to maximize benefit levels, in reality, this may not be the most effective strategy for many clients.
ESOPs: The Road to Business Succession
Employee stock ownership plans can serve a number of purposes for your small business clients, providing a powerful motivator for employees and simultaneously reducing corporate taxes.
|Buy Sell Agreements
Stock Redemption and Cross Purchase Agreements, Family Attribution, Business Succession Planning...
Wills, Trusts, Joint Tenancy, Tenancy in Common, POD accounts, Custodial Accounts, Intestate Succession...
|Business Life Insurance
Key Person Insurance, Executive Bonus, Deferred Compensation, Rabbi Trusts, Secular Trusts, Split-Dollar, ...
IRAs, SEPs, 401(k)s, Qualified Retirement Plans, ESOPs, Rollovers, Life Insurance in Qualified Plans...
Disability Income Insurance, Long Term Care Insurance, Health Insurance, 529 Plans, Taxation of Investments...
Group Term Life Insurance, COBRA, Cafeteria Plans, Flexible Spending Accounts, Health Savings Account...
Estate shrinkage is closely related to estate liquidity—or lack of liquidity. A certain amount of liquidity is needed to meet estate settlement costs that cause the shrinkage.
Under common law minors cannot own property in their own names. This does not mean that a minor cannot inherit an IRA or be designated as the beneficiary of an IRA; it means that their are special considerations.
Powers of appointment are a valuable tool in estate plans, because they allow for future flexibility in the ultimate disposition of the donors property which is placed in a trust.
For wealthier and more sophisticated investors 529 Plans may not be the best option to financially prepare for college.
A substantial portion of the wealth possessed by Americans today consists of IRAs, 401(k)s and 403(b)s. This article covers all the distribution rules and all aspects of trusts as beneficiaries of tax deferred retirement accounts including sample forms.
Certain high income clients who have not previously made deductible IRA contributions ought consider opening a traditional IRA this year and contributing the largest allowable nondeductible contribution they can manage.
The will approach is based upon one of two major assumptions. At the time of the interview, either the prospect has a will or doesn`t - there`s no middle ground.
Significant tax advantages can be achieved by widows and widowers who are beneficiaries of credit shelter trusts (established upon the deaths of their respective spouses), through the purchase...
Estate Tax, Generation-Skipping Transfer Tax, Gift Tax, Valuation
Exchange-Traded Funds (ETFs), Hedge Funds, Mutual Funds, Real Estate Investment Trusts (REITs), Unit Trusts
Amounts Not Received as an Annuity, Amounts Received as an Annuity: Fixed Annuities, Annuity Rules: Variable Annuities, Charitable Gift Annuity, Death, Disposition, Divorce, Estate Tax, Gifts and Charitable Gifts, In General, Loss, Private Annuity, Structured Settlements, Taxation, Withholding
Bond Premium, Corporate Bonds, Inflation-Indexed Bonds, Market Discount, Municipal Bonds, Original Issue Discount, Other Issues Affecting Bonds, Short-Term Taxable Obligations (Maturities One Year or Less), Treasury Bonds and Notes
Accumulated Earnings Tax, Alternative Minimum Tax, Death Proceeds of Business Life Insurance, Estate Tax Issues, Gift Tax Issues, Premiums, S Corporations, Sale or Liquidation of Partnership Interest, Stock Purchase Agreement, Transfer of Policy
Funded Deferred Compensation (Annuities and Trusts), Unfunded Deferred Compensation
New Disclosure Regulations for Retirement Plan Service Providers
Corporations And Other Business Entities, General Rules
Abbreviations, About Summit Business Media, About the Editors, Introduction
Death Benefits, Group Permanent Insurance, Group Survivor Income Benefit, Group Term Life Insurance, Retired Lives Reserves
Employer-Provided Health Insurance, Health and Medical Savings Accounts, Health Insurance And The Estate Tax, Health Insurance And The Gift Tax, The New Health Care Reform Law
Distributions, Early Distributions, Eligibility, Employer-Sponsored IRAs, Estate Tax Issues, Filing Requirements, In General, Required Minimum Distributions, Simple IRA, Simplified Employee Pension (SEP)
Cash Value Increases, Collection of Delinquent Income Taxes from Life Insurance, Creditor Insurance, Death Proceeds, Demutualization, Disability Provisions Under Life Policies, Divorce, Gift Tax Issues, Gifts and Charitable Gifts, Government Life Insurance, Life Insurance Trusts, Life Insurance: Estate Tax Issues, Living Proceeds, Policies Insuring More Than One Life, Premiums, Single Premium Whole Life Insurance Policy, Taxation Of Distribution of Life Insurance Contract, Value of Unmatured Policy
In General, Non-Qualified Long-Term Care Insurance Contract, Premiums, Reporting Requirements, Taxation of Benefits
Insurance & Employee Benefits, Investments
Employer Deduction, Plan Types And Features, Qualification, Qualified Plans And The Estate Tax, Taxation of Distributions
Dividends, Sale or Exchange, Stock Options, Stock Warrants, Worthless Securities
Amounts Received Under the Plan, Changing Issuers, Contract Requirements, Contributions, Distributions, Excise Taxes, Plan Termination, Social Security and Withholding Taxes