|
|
|
|
|
July 2021 |
|
|
PAST ISSUES |
SUBSCRIBE |
UNSUBSCRIBE |
CONTACT US
|
|
Advisor News Insight
AFRs |
FACTS |
RECOMMENDED |
TOOLS |
REQUIREMENTS |
BEST CE
|
|
|
INDUSTRY NEWS
|
|
Charitable Planning
Senate Bill Proposes Dramatic Changes for Donor Advised Funds and Private Foundations
This article was written by
Dahlia B. Doumar, Partner,
Robin Krause, Partner,
Tanvi Mirani, Associate, and
Justin Zaremby, Associate at
Patterson Belknap Webb & Tyler LLP.
On June 9, 2021, United States Senators Angus King (Ind.-MA) and Charles Grassley (R-IA) announced plans to
introduce the “Accelerating Charitable Efforts Act” or the “ACE Act” (the “Act”) which, if adopted, would
implement significant changes with respect to the rules surrounding donor advised funds (“DAFs”) and private
foundations. The proposed changes, already being hotly debated in the philanthropic community, would, among other
things, mandate operational changes for DAF sponsoring organizations and offer financial incentives (in the form of
both excise taxes and tax relief) to motivate donors, sponsoring organizations, and private foundations to distribute
funds to public charities at a rapid pace.
|
|
|
Top ↑
|
|
|
IRA Planning
10-Year Rule: Beneficiary Planning “Loophole” Closed
This article was written by
Andy Ives, CFP®, AIF®, IRA Analyst at
Ed Slott and Company, LLC.
With the passage of the SECURE Act, once common IRA beneficiary planning strategies have been upended.
For example, no longer can just anyone stretch payments on an inherited IRA. You must qualify as an “eligible
designated beneficiary” (EDB) to stretch using your single life expectancy. As we have written many times, EDBs
include surviving spouses, minor children of the account owner (up to majority, or if still in school, up to age
26), disabled and chronically ill individuals, and individuals not more than 10 years younger than the IRA owner.
|
|
|
|
|
Beneficiary Distribution Options for 2021 Traditional IRAs and Roth IRAs (Generalized Summary)
The chart was taken from the 2021 Supplement to the 9th Edition of the Roth IRA Answer Book
(Wolters Kluwer, 2021).
Detailed 2-page chart showing distribution options in 2021 for various kinds of beneficiaries
(a surviving spouse who is the sole primary beneficiary, other named individuals, a trust, etc.)
under a traditional or Roth IRA, and how they are affected by the IRA owner’s date of death.
|
|
|
|
|
When and for Whom are Roth Conversions Most Beneficial? A New Set of Guidelines, Cautions and Caveats
This article was written by
Edward McQuarrie, Professor Emeritus
in the Leavey School of Business at
Santa Clara University.
Much has changed since penalty-free Roth conversions were inaugurated in 2010. Tax rates have gone up and down.
The re-characterization provision went away. Heirs can no longer stretch out inherited Roth accounts over a lifetime.
Medicare surcharges were expanded and began to adjust for inflation. The age to begin Required Minimum Distributions
was pushed out to age 72 and the IRS changed the RMD divisor tables to further slow the pace of distribution. Given
these developments it seemed worthwhile to re-examine the rationale for Roth conversions.
|
|
|
Top ↑
|
|
|
Long Term Care Planning
Washingtonians for a Responsible Future, Long-Term Care Trust Act Fact Sheet
Researched and distributed by
Washingtonians for a Responsible Future.
Washington State has approved the nation’s first publicly-funded long-term care insurance program.
The measure, called the Long-Term Care Trust Act, would provide a maximum benefit of $36,500 for people
who need assistance with at least three activities of daily living (ADLs) such as bathing, toileting,
transferring, dressing, or eating. It would be funded with a payroll tax (or what supporters call a premium)
of 0.58 percent of wages starting in 2022. The money would go into a trust fund so it could not be spent on
other programs.
|
|
|
|
|
Medicare & Medicaid Planning
CMCS Informational Bulletin
The Centers for Medicare & Medicaid Services (CMS) released a Medicaid Informational Bulletin with
the updated 2021 Supplemental Security Income (SSI) and Spousal Impoverishment Standards.
|
|
|
Top ↑
|
|
|
Retirement Planning
How America Saves 2021, 20th Edition
Prepared and distributed by
The Vanguard Group, Inc.
In this 20th annual survey of its own 1,700 retirement plans and 4.7 million participants,
the full-service plan provider and fund giant offers a detailed snapshot of plan design and
participant behavior.
|
|
|
|
|
Tax Planning
General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals
The Department of the Treasury’s recent “Greenbook” of revenue proposals, taxing transfers of
property into and distributions from, certain entities including partnerships.
|
|
|
|
|
Practice Management - IRA Rollovers
Reg BI Compliance Only Partly Covers DOL Requirements
This article was written by
Steven A. Morelli, Editor-in-Chief for
InsuranceNewsNet.
Broker-dealers, investment advisors and insurance distributors realize that they must prepare to
comply with the Department of Labor’s investment advice guidance, but what do they need to do?
|
|
|
Top ↑
|
|
ASSUMED FEDERAL RATES (AFRs)
|
§7520 Rate for July is: 1.2%
Break down:
|
|
|
|
|
Top ↑
|
FINANCIAL FACTS OF THE MONTH
|
Hard to Catch Up
Source: BTN Research
A 30-year old who is investing $500 at the beginning of every month in a tax-deferred 401(k) will
accumulate $588,032 by age 60 if the funds grow at ⁺7% per year. If that individual was forced to
suspend his/her monthly deferral for just 5 years from ages 35-39, he/she would have to earn ⁺8.8% per
year from ages 40-60 to accumulate $588,032 by age 60. This mathematical calculation ignores the impact
of taxes on the account which are due upon withdrawal, is for illustrative purposes only and is not intended
to reflect any specific investment. Actual results will fluctuate with market conditions and will vary.
|
|
|
|
|
Just Pay Your Fair Share
Source: Internal Revenue Service (IRS)
A House of Representative subcommittee met on Wednesday (5/12/21) to discuss “reforming the tax code’s
advantageous treatment of the wealthy.” The top 1% of US taxpayers (for tax year 2018) reported at least
$540,009 of adjusted gross income (AGI), received 21% of all AGI nationwide, and paid 40% of all the federal
income taxes that were collected for that tax year.
|
|
|
|
|
Make a Quick Decision
Source: National Association of Realtors
Existing homes that were sold nationwide in March 2021 were on the
market on average of just 18 days (2½ weeks) before selling.
|
|
|
Top ↑ |
|
|
Money In, a Lot More Out
Source: U.S. Department of Treasury
Halfway through fiscal year 2021, i.e., the 6 months ending 3/31/21, the US government has
taken in $1.7 trillion of receipts (i.e., taxes), paid out $3.4 trillion of outlays (i.e.,
spending), resulting in a 2021 fiscal year deficit to date of $1.7 trillion with still 6 months
to go in the fiscal year. Last year’s fiscal year 2020 budget deficit of $3.1 trillion is our
nation’s all-time record.
|
|
|
|
|
State Money
Source: U.S. Census Bureau
The average US state receives 48% of its tax revenue from sales taxes,
41% from income taxes, 6% from license taxes, and 5% from other taxes.
|
|
|
|
|
Tax Cheaters
Source: IRS
The government projected in September 2019 that our nation’s “tax gap,” i.e.,
the difference between what all taxpayers should have paid compared to what they
actually paid, was $441 billion per year. On 4/13/21, IRS Commissioner Charles
Rettig testified before the Senate Finance Committee that the “tax gap” could be
as high as $1 trillion annually, or more than double the previous estimate.
|
|
|
Top ↑ |
RECOMMENDED READING
|
|
State of Medicare Advantage
by Better Medicare Alliance
The Better Medicare Alliance has published the latest edition of its annual
State of Medicare Advantage Report. The report is really a fact book that agents
can use to develop marketing content or support legislative affairs efforts. The
alliance is a Washington-based group that represents insurers, consumers and other
people and organizations with an interest in the Medicare Advantage program.
|
|
|
|
Top ↑
|
ADVISOR TOOLS
|
2021 Federal Income Tax Guide
Our Tax Guide contains tax information such as:
- Individual income tax rates
- Estates and trusts tax rates
- Roth IRA contribution limits and much more...
Download the Tax Guide below:
|
|
|
|
|
2021 Social Security & Medicare Reference Guide
Our Reference Guide contains information such as:
- Social Security income limits
- Medicare Parts A-D deductibles and premiums
- Medicare surtaxes and much more...
Download the Reference Guide below:
|
|
|
|
|
Financial / Insurance Calculators & Websites
An extensive list of online calculators and informational websites.
|
|
|
Top ↑
|
REQUIREMENT UPDATES
|
View updates by state, CE requirements and more by clicking on the link below.
|
|
|
Top ↑
|
BEST CE PROGRAMS
|
Online CE Courses
At BEST we provide you with a lot of CE credit. Courses are
cost-effective, updated annually and nationally approved for
state insurance and professional designation credits
(CFP/CIMA/CPWA/ RMA). Our CE courses are specifically
designed for quick completion and include:
- Self-paced courses
- Unlimited retakes of review questions and final
examinations
- Instant grading
- Course material accessible for up to six (6) months
from date of purchase
- Excellent customer support team
|
|
|
|
|
CFP/CIMA/CPWA/RMA Ethics CE 2-Hour Live Webinar
“Ethics CE: CFP Board’s Revised Code and Standards:
Ethics for CFP Professionals”
(CFP Course#: 277681 | CIMA/CPWA/RMA
Course#: 21BEST011)
Earn two (2) credit hours of CFP/CIMA/CPWA/RMA Ethics CE with NO EXAM!
(“Investments & Wealth
Institute® has accepted this CFP Ethics webinar for
2 hours of CE credit towards the CIMA®, CPWA® and
RMA® certifications.”)
WEBINAR DOES
NOT INCLUDE STATE INSURANCE CREDIT!
*PAYMENT OPTIONS:
- CFP ONLY license: $49.00
- CIMA/CPWA/RMA ONLY license: $49.00
- CFP AND CIMA/CPWA/RMA licenses: $49.00 plus an
additional fee of $25.00
NOTE: Attendees MUST participate in all exercises and polling questions during the webinar.
Credit received for attendee time logged and participation, NO EXAM at end of webinar.
(A $10.00 cancellation fee will apply for all refunds requested.)
|
|
|
|
|
Self-Study CE Course List
As a top-notch continuing education provider we:
- Deliver CE to financial and insurance
advisors
- Offer up‑to‑date and industry pertinent CE
courses that maximize credits
- Provide ClearCert certified long-term care
and annuity training CE courses
- Supply CE courses that are approved in all
50 states and the
District of Columbia
Order
CE courses toll free at: 1-800-345-5669 OR send an
email to
self_study@brokered.net.
|
|
|
Top ↑
|
DISCLAIMER
|
|
Reproductions of our Advisor News
Insight newsletter are prohibited unless you have received
prior authorization from Broker Educational Sales &
Training, Inc. (BEST), but you are free to email this copy
(in its entirety) to colleagues.
This newsletter may not be posted
to any website without written consent.
This newsletter is a digest of
information published by a variety of web-based sources and
is published as a service to our users. BEST is not the
author of the material unless specifically noted.
Articles are copyrighted to their
publishers. All links were tested before this newsletter was
emailed to ensure that they are still functional, but
publishers move and/or delete articles. Therefore, we cannot
guarantee that the links provided will remain operational.
BEST does not endorse and
disclaims any and all responsibility or liability for the
accuracy, content, completeness, legality, or reliability of
the material linked to in this newsletter. Reliance on this
material should only be undertaken after an independent
review of its accuracy, completeness, efficacy, and
timeliness. Opinions expressed are those of the author of
the article and do not necessarily reflect the positions of
BEST.
THIS
NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY
AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING OR LEGAL ADVICE.
|
Top ↑
|
INFORMATION
|
© 1986 - 2021 Broker Educational Sales & Training, Inc. All Rights Reserved.
7137 Congress Street, New Port Richey, FL 34653
Hours of Operation: Monday - Friday, 8:30AM to 5:00PM Eastern Time
|
Top ↑
|
SERVICES
|
|
|
|
|
|
|
Leave a review: |
|
|
|
|
|
|
UNSUBSCRIBE* |
ABOUT BEST |
CONTACT US |
PRIVACY POLICY |
REFUND POLICY
|
*Unsubscribing? Please allow one (1) business days for removal. |
Ensure newsletter delivery to your inbox by adding newsletter-owner@best-ce.com to your address book.
|
Top ↑
|
|
|
|