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June 2021 |
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PAST ISSUES |
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Advisor News Insight
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FACTS |
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BEST CE
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IN LOVING MEMORY OF DAN BARRETT |
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INDUSTRY NEWS
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Health Care Planning
A Comparison of Tax-Advantaged Accounts for Health Care Expenses
This Congressional Research Service report provides a brief summary of
each tax-advantaged account for health care expenses, highlighting key
aspects regarding eligibility, contributions, withdrawals, and the treatment
of unused balances for that particular account, as well as data on availability
and use. It also provides a side-by-side comparison of these accounts along related topics.
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Health Care Costs in Retirement Remain a Top Stressor
This article was written by
John Manganaro,
Managing Editor at
PlanAdvisor.com.
Fidelity’s latest analysis shows people often underestimate the potential cost of health care in retirement,
even after two decades of watching health care costs increase year-over-year. Fidelity published its 20th annual
health care cost estimate, finding a couple retiring today will need approximately $300,000 to cover medical
expenses. This is up 30% from 10 years ago and 88% since 2002, when the yearly tracking project began.
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IRS Announces HSA Limits For 2022
Revenue Procedure 2021-25 provides the 2022 inflation adjusted amounts for Health Savings Accounts (HSAs) as
determined under § 223 of the Internal Revenue Code and the maximum amount that may be made newly available for
excepted benefit health reimbursement arrangements (HRAs) provided under § 54.9831-1(c)(3)(viii) of the Pension
Excise Tax Regulations. For calendar year 2022, the annual limitation on deductions under § 223(b)(2)(A) for an
individual with self-only coverage under a high deductible health plan is $3,650. For calendar year 2022, the
annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible
health plan is $7,300. For calendar year 2022, a “high deductible health plan” is defined under § 223(c)(2)(A) as a
health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage,
and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,050
for self-only coverage or $14,100 for family coverage.
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IRA Planning
Is the Secure Act Good or Bad for Trusteed IRAs?
This article was written by
Natalie Choate,
Attorney at
Nutter McClennen & Fish LLP.
Depending on your view, the Secure Act has either “killed” the trusteed IRA or given it a new lease on life.
I’m in the latter camp. From my angle, the trusteed IRA is the perfect cure for one of the biggest Secure Act-created
problems – namely, how to control distributions to a beneficiary under the 10-year rule. But if you’re a financial advisor
looking for a sales pitch for the trusteed IRA, the Secure Act made your job harder.
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Medicare Planning
The Great Medigap Debate – What is Best?
This article was written by
Joanne Giardini-Russell,
Medicare Nerd & Owner at
Giardini Medicare.
How do you choose a Medigap product? And who do you purchase it from?
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Retirement Planning
U.S. Retirement Assets in 2020
The Federal Reserve’s Financial Accounts of the United States reported that
the total amount of U.S. retirement assets (outside of Social Security) was
$37.0 trillion at the end of 2020.
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What’s in the New SECURE Act 2.0?
This article was written by
Ted Godbout, Writer/Editor at
American Retirement Association.
The House Ways & Means Committee approved the Securing a Strong Retirement Act of 2021
(H.R. 2954) (a.k.a. the “SECURE Act 2.0”) on May 5 by a unanimous voice vote. Other than a
manager’s amendment that made technical clarifications to the underlying bill, no additional
amendments were offered during the markup. The new Securing a Strong Retirement Act of 2021
(H.R. 2954) now contains about 45 provisions, including new revenue offsets to pay for the bill.
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Social Security Planning
Social Security: Who Is Covered Under the Program?
Social Security pays cash benefits to about 65 million people each month. In all cases,
a Social Security beneficiary becomes eligible for benefits either by working in a job that
is covered by Social Security (a covered worker), by having a close family relationship to a
covered worker, or both (among other requirements).
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Supplemental Security Income for Children with Disabilities
This article was written by Jonathan Stein, Of Counsel at Community Legal Services,
Philadelphia and Linda Landry, Senior Attorney at Disability Law Center, Boston.
SSI helps low income families care for their children with mental or physical disabilities.
It can be difficult to meet a child’s disability-related needs. SSI can help meet these and
other needs to ensure the best outcome for the child.
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Tax Planning
The 3.8% Net Investment Income Tax: Overview, Data, and Policy Options
Since 2013, certain higher-income individuals have been subject to a 3.8% “unearned income Medicare contribution” tax,
more commonly referred to as the net investment income tax (NIIT). The statutory authority for the tax is included in
Internal Revenue Code Section 1411. The tax was included as a revenue-raising offset in the Health Care and Education
Reconciliation Act of 2010 (HCERA, P.L. 111-152), shortly after the Patient Protection and Affordable Care Act (P.L. 111-148)
was signed into law. These two laws are commonly referred to as the Affordable Care Act or ACA.
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ASSUMED FEDERAL RATES (AFRs)
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§7520 Rate for June is: 1.2%
Break down:
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FINANCIAL FACTS OF THE MONTH
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Adding More Debt
Source: Federal Reserve Bank of New York
Total US household debt, including mortgages, credit cards and auto loans, was $12.67 trillion as of 12/31/08.
Over the next 5 years, total household debt fell $1.15 trillion to $11.52 trillion as of 12/31/13. But over the
last 7 years, total household debt has increased $3.04 trillion to $14.56 trillion as of 12/31/20.
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Almost All Sent out
Source: American Rescue Plan Act of 2021
As of 4/21/21, 159 million stimulus payments totaling
$376 billion have been disbursed under the 3/11/21 “American Rescue Plan Act.”
22% of the $1.9 trillion bill, or $411 billion, was scheduled to be paid to
eligible Americans in the form of $1,400 payments.
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Have Kids, Get Money
Source: Tax Policy Center
An estimated 40% of the 126 million households in the United States have children under the age of 18,
or 50 million households. An estimated 90% of the 50 million households (45 million) will qualify for the
expanded Child Tax Credit (CTC) per the American Rescue Plan Act of 2021. The new CTC could pay $300 per
month per child under age 6and $250 per month per child between ages 6-17beginning 7/01/21. Please consult
a tax expert for details.
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Highest Ever
Source: Internal Revenue Service (IRS)
The top capital gains tax rate in 2021 for a married filing joint taxpayer with taxable income of
at least $496,600 is 23.8%. On Thursday 4/22/21, reports surfaced that the White House favors increasing
the top capital gains tax rate in 2022 for a married filing joint taxpayer with taxable income of at least
$1 million to 43.4%. The highest capital gains tax rate in U.S. history is 39.875%, last levied in 1978.
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Hope They Stay Low
Source: Congressional Budget Office (CBO)
U.S. federal debt is expected to push well past 100% of GDP – levels not seen since 1945 and 1946 in response to World War II.
Even though debt expanded by $4 trillion last year, interest payments on that debt declined by approximately 8%.
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In the Right Direction
Source: Centers for Disease Control and Prevention (CDC)
U.S. deaths from all causes (e.g., natural causes, cancer, heart disease, COVID, etc.) for the week ending Saturday 1/02/21 peaked at
84,192 (12,027 per day), but has since fallen for the next 15 weeks to 32,343 deaths for the week ending Saturday 4/17/21 or 4,620 per day.
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Infrastructure
Source: American Society of Civil Engineers (ASCE)
American roads and bridges will require an estimated $2.8 trillion of repairs and upgrades over the 10 years from 2020-2029.
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No Commute
Source: U.S. Census Bureau
3 out of every 4 American families (73%) reporting household income of
at least $200,000 switched to a “work-from-home” structure when the pandemic
began in 2020.
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Wait Till the Cost of Money Goes Up
Source: U.S. Department of the Treasury
During fiscal year 2020, i.e., the 12 months ending 9/30/20, the US government spent $345 billion for
interest payments on the national debt or $945 million a day. 5 years earlier, i.e., fiscal year 2015, the
U.S. government spent $223 billion for interest payments on the national debt or $611 million a day.
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RECOMMENDED READING
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2021 Investment Company FACT BOOK
Investment Company Institute (ICI)
[This Fact Book provides] detail on the remarkable range of products our industry has
created to help investors save for their goals, on how our industry is evolving ... to meet
investors’ changing demands, and on the substantial declines in fund fees Main Street investors
incur to gain exposure to stocks and bonds through pooled, professionally managed funds....
[It also provides] considerable detail ... about the tens of millions of U.S. households that use
funds to save for their goals and how funds support them as they save for retirement and education.
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ADVISOR TOOLS
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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:
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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:
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Financial / Insurance Calculators & Websites
An extensive list of online calculators and informational websites.
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REQUIREMENT UPDATES
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View updates by state, CE requirements and more by clicking on the link below.
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BEST CE PROGRAMS
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BEST 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
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BEST Virtual Super CE Events
We provide advisors with:
- Study material, a 1.5 hour live webinar (review of study material) and a
50-question electronic exam (amount of questions vary by state)
- Maximum amount of State Insurance CE credit (varies by state)
- 10 CE credit hours of CFP
- 5 CE credit hours of CIMA/CPWA/RMA
- Cost is $74.95 per event plus state insurance filing fees when applicable
If you are unable to attend the live webinar, you may view a recording of the webinar or
credit may be transferred to the next available live webinar. (NOTE: A $20.00 cancellation
fee will apply for all refunds requested.)
- Includes certificate for CFP/CIMA/CPWA/RMA and other professional designations
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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.)
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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.
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DISCLAIMER
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BEST INFORMATION
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