Podcasts about pension protection act

This week, I interviewed Mike Simenstad, an LTC veteran with 34 years of experience working for several LTC carriers and distributors.  He currently works for National Guardian Life (NGL), a traditonal LTC company across the United States. Mike, and others in his role help me and other LTC specialists to be able to work smarter for our clients.  We all work together as a team to find the best solution for each family. Mike answers questions about tools/resources consumers use to research and why that can  get confusing.   We discuss actions people are taking today to plan, and we discuss how the traditional LTC industry has evolved and gotten much healthier over the last 50 years. Learn costs of care where you live Estimate LTC premiums for plans with a 6 year benefit period and 3% compounding inflation When we talk we will decide if larger or smaller plans will meet your needs better, but this a good start. Learn what you state's Medicaid program will currently let you keep and access the state Medicaid sysytem for care Schedule a phone or Zoom meeting with me  

This week, Diane shares how the PensionProtection Act passed in 2010 makes it possible to 1035 exchange non-qualified annuities into various LTC plans that generate tax-free income for extended care needs. Not all annuities are tax-free for LTC.  LIsten and learn how different rules apply to different annuity forms. If you or somone you know has an annuity that they don't want to use due to many years of taxable earnings when withdrawn, consider 1035 exchanging that into an LTC annuity with tax-free income for long term care. If care is never needed, the annuity is passed to beneficiaries just like  other annuities.   Let's work together to learn if you can design an LTC plan that saves taxes and dosen't impact your budget. Schedule with me at to learn what is available inyour state.

Brad Arends is the co-founder and CEO of Intellicents, an independent RIA based out of Minnesota that oversees $6 billion in assets under management for more than 3,000 households. Brad stands out for having built a multi-billion-dollar advisory firm by offering comprehensive financial planning to large company employees as an added benefit, rather than targeting multi-millionaire clients. Listen in as Brad delves into his transition from focusing on 401(k) plan participants to expanding into wealth management, addressing the challenges of shifting advisors' mindsets and the evolution of his multi-pronged business model. We also explore the implications of the Pension Protection Act on his decision-making, his strategic move to sell a significant portion of his business to prioritize personal wealth management, and his innovative use of data to craft personalized financial plans. For show notes and more visit: https://www.kitces.com/355

In part one of our pensions law episode with Ross Gascho, we discuss the recently-passed Pension Protection Act (Bill C-228) and canvass the broader implications of pension plan payments taking a "super-priority" in insolvency proceedings. ✨ Read the full episode transcript HERE ✨ Learn more about the topics/cases on the Lawyered website✨ Help to declutter the law on the Lawyered crowdfunding page

On this episode, we're discussing the most current topics in the area of pensions law, featuring the head of Fasken's practice group, Ross Gascho. Topics: "super-priorities" and the Pension Protection Act; fiduciary duties for pension plan trustees; correcting for pension over- and under-contributions.  ⚫ When pension plan payments take a "super-priority" in insolvency proceedings, how will that impact broader financing objectives? (8:59)⚫ What sorts of fiduciary obligations are owed by pension plan trustees? (18:18)⚫ How will new ITA amendments help to correct for under- and over-contributions for defined contribution pension plans? (29:15)⚫ Our Ask-Me-Anything segment, featuring questions submitted by patrons of the Lawyered community (37:00

The Setting Every Community Up for Retirement Enhancement (“SECURE”) Act of 2019 was the most significant retirement-related legislation since the Pension Protection Act of 2006. The Act significantly altered the estate planning landscape for retirement account owners by eliminating the stretch IRA for most non-spouse beneficiaries and introducing new rules for trust beneficiaries. To learn more about tax and estate planning with retirement account I'm joined on this episode by Bernstein National Director of Tax Research Bob Dietz.With any questions or comments, or to discuss your own financial situation, I can be reached at marc.penziner@bernstein.com or 212-969-6655.The information presented and opinions expressed are solely the views of the podcast host commentator and their guest speaker(s).  AllianceBernstein L.P. or its affiliates makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this podcast. This podcast is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor's personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AllianceBernstein or its affiliates.

Join Kelly and her guest: Sheryl Moore, CEO of Wink and Moore Market Intelligence. Today we're talking about life insurance with living benefits and extended care protection.In this episode: Product trends and living benefits, product innovation, how hybrid LTC policies are structured, Pension Protection Act and LTC, what LTC solution is best, and roadblocks that insurance companies face in the hybrid annuity market.Find out more about Sheryl Moore:https://www.winkintel.com/Linkedin: https://www.linkedin.com/in/sheryljmoore/ For additional information about Kelly, check her out on Linkedin or www.SteadfastAgents.com. To explore your options for long-term care insurance, click here. Steadfast Care Planning podcast is made possible by Steadfast Insurance LLC, Certification in Long Term Care, and AMADA Senior Care Columbus. Come back next time for more helpful guidance!

In December 2019, The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was enacted and signed into law. The Act was the most significant piece of legislation impacting employee benefit plans since the Pension Protection Act in 2006, and includes a plethora of changes to the laws governing employer-sponsored retirement plans, specifically impacting defined contribution and defined benefit plans, IRAs, 529 plans and governmental plans. And then the pandemic hit. So while the SECURE Act has been in place for over two years, many employers are still grappling with what adjustments they need to make. How has the SECURE Act impacted post-death required minimum distributions? How has it impacted long-term part-time employees and their participation in defined contribution plans? Grab your cup of coffee and tune in to hear Richard and Sarah chat with Seyfarth's Irine Sorser about these pressing questions and more!

Every now and then you have a guest that like Prince, or Cher, that simply needs one name to know who they are. Today, I am happy to welcome Shlomo, more formally known as Dr. Shlomo Benartzi, Professor Emeritus, UCLA Anderson, Founder and CEO, PensionPlus. We dive into the compelling and complex topic of the good, the bad and the ugly of auto everything in retirement plans. As implied, auto features are powerful, but may or may not be the best solutions to everything. Love to hear what you agree or disagree with, please share and leave your comments on LinkedIn. I learned a lot, hope you do as well!   Guest Bio Shlomo Benartzi is a behavioral economist interested in combining the insights of psychology and economics to solve big societal problems. He works on creating digital nudges that leverage technology to achieve massive scale and help millions make better financial decisions. He received a Ph.D. from Cornell University's Johnson Graduate School of Management and is currently a professor emeritus and co-founder of the Behavioral Decision-Making Group at UCLA Anderson School of Management. He is also a Distinguished Senior Fellow at the Wharton Behavior Change for Good Initiative.   Benartzi's work has demonstrated the potential for far-reaching improvement. Along with Nobel Laureate Richard Thaler of the University of Chicago, he pioneered the Save More Tomorrow™ (SMarT) program, a behavioral prescription designed to nudge employees to increase their savings rates gradually over time. In their original research, Benartzi and Thaler found that SMarT increased employee savings rates from 3.5 percent to 13.6 percent. The SMarT program is now offered by more than half of the large retirement plans in the U.S. and a growing number of plans in Australia and the U.K. The program has also been incorporated into the Pension Protection Act of 2006, enabling approximately 15 million Americans to boost their retirement savings.   To help bridge the gap between academic research and the real world, Benartzi has worked with many financial institutions and served on multiple advisory boards. He is currently a senior academic advisor for the Voya Behavioral Finance Institute for Innovation, Acorns, Blast, Lili, Personal Capital and Wisdom Tree.   401(k) Fridays Podcast Overview Struggling with a fiduciary issue, looking for strategies to improve employee retirement outcomes or curious about the impact of current events on your retirement plan? We've had conversations with retirement industry leaders to address these and other relevant topics! You can easily explore over 250 prior on-demand audio interviews here. Don't forget to subscribe as we release a new episode every other Friday!

Join Kelly and her guest: Tom Hegna, economist, retirement income expert, speaker, and author. Tom is on a mission to help the world's population understand the math and science to retire happy.Today we're talking about how no retirement plan is complete without a plan for long-term care (LTC).In this episode: the importance of planning for long-term care (LTC) and how it can affect your retirement plan, the three phases of retirement, Pension Protection Act annuities, increasing income in retirement, and why it's important to work with an independent LTC insurance Specialist. Watch this episode on Youtube:https://youtu.be/HT4qHJbNA68 Find out more about Tom Hegna:https://tomhegna.com/ Find Tom's books online:https://tinyurl.com/235z2722For additional information about Kelly, check her out on Linkedin or www.SteadfastAgents.com. To explore your options for long-term care insurance, click here. Steadfast Care Planning podcast is made possible by Steadfast Insurance LLC, Certification in Long Term Care, and AMADA Senior Care Columbus. Come back next time for more helpful guidance!

In episode 42 of Revamping Retirement, Jennifer Doss and Scott Matheson talk with Dr. Shlomo Benartzi, a behavioral economist widely known for the Save More Tomorrow (SMarT) program, which he pioneered with Nobel Laureate Dr. Richard Thaler. Save More Tomorrow is a behavioral nudge designed to help employees increase their saving rates gradually over time. The SMarT program was incorporated into the Pension Protection Act of 2006 and has since helped boost the retirement savings of more than 15 million Americans through auto-enrollment and auto-escalation features. More than 25 years later, Dr. Benartzi talks about the success of the SMarT program and shares why he feels there is a big opportunity to rethink the details, particularly when it comes to incorporating technology to elevate customization. He also discusses how proposed legislation like the Securing a Strong Retirement Act of 2021 (SECURE 2.0) could help move the dial for auto-features. Shifting the focus from the accumulation phase of retirement, Dr. Benartzi talks about why auto-features are not as relevant when it comes to decumulation—which he considers to be the next big retirement industry gap. He shares why moving from a savings plan mentality to a true retirement plan approach is key and speaks to the importance of personalization when it comes to addressing the differing retirement income needs of participants. In Minute with Mike, Mike Webb shares the differences between fiduciary liability insurance and a fidelity bond.  

Host Beth Garner talks to Norma Sharara, Managing Director, National Tax Office — Compensation & Benefits at BDO regarding the SECURE 2.0 Act of the House, the RISE & Shine Act of the Senate HELP Committee, and the as-yet-unnamed bill from the Senate Finance Committee, all aiming to supply greater access to workplace retirement. Beth and Norma discuss some of the provisions of each bill and how they differ, including a SECURE 2.0 provision for student loan debt.Listen in to get information on bipartisan supported expected improvements to workplace retirement plans.Key Takeaways:[1:07] On March 29, the U.S. House of Representatives passed Secure 2.0 with a vote of 414-5. [2:48] The Senate Committee on Health, Education, Labor, and Pensions (HELP) passed the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act (RISE & SHINE Act).[4:34] The Senate Finance Committee is considering over 1,000 changes to the House Secure 2.0.[7:44] The original SECURE Act became law in December 2019, before COVID-19. It was the biggest change to retirement plan law since the Pension Protection Act of 2006. SECURE 2.0 seeks to add enhancements to the 2019 act.[8:36] One change is increasing access to workplace retirement plans. Norma explains the differences in the House and Senate bills on mandatory enrollment. Another hot topic is emergency savings. SECURE 2.0 does not have a provision for emergency savings but RISE & SHINE allows a sidecar 401(k) account to build up for emergency use.[10:10] Norma discusses changing the Required Minimum Distributions from starting at age 72 to rising to start at age 75. There are other provisions like allowing additional catch-up contributions, for those close to retirement age and making all contributions after-tax Roth.[10:52] Other possible provisions are allowing employees to have their matching contribution be Roth, to pay tax on the matching contribution up front, and not at the withdrawal, electronic plan administration through email, Savers' Credit being refundable to encourage people to save, and some additional tax credits for small businesses to offset startup costs.[12:44] SECURE 2.0 (but not RISE & SHINE) allows you to treat student loan payments as elective deferrals for purpose of matching contributions. Students are graduating with too much debt and too few job opportunities.[14:39] Another SECURE 2.0 provision, not in RISE & SHINE, is a government-run “Lost & Found” for retirement plan assets of people leaving jobs behind.Resources:BDO.comBDO's ERISA Center of ExcellenceBDO.com/talksERISAEmail: bdotalkserisa@bdo.comHouse Bill Secure 2.0, “Securing a Strong Retirement Act of 2022”Senate RISE & SHINE ActNovember 2022 ElectionSECURE Act of 2019Pension Protection Act of 2006Quotes:“[There are] all sorts of things [in these bills] to encourage people to save more and to really help people have an idea about their retirement.” — Norma Sharara“It's very nice to see that there is broad bipartisan support for these rules and it's exciting to see what comes out of it.” — Beth Garner“The best parts of RISE & SHINE and SECURE 2.0 and whatever the Senate Finance is going to call their bill, hopefully, that will move and we'll see even greater access to workplace retirement savings.” — Norma Sharara

What is a target date retirement fund? If you are invested in a 401k, you are likely invested in a target date retirement fund as well. On this episode, I'll dive into the four things you need to know about target date funds, including what they are and how they can help you save for retirement.  You will want to hear this episode if you are interested in... What is a target date fund and why am I invested in it? [1:12] Comparing target date funds [4:03] How do target date funds work and should I invest in them? [6:55] The pitfalls of target date funds [9:22] Identifying target date funds In 2006, the Pension Protection Act was signed into law with the hope that it would bolster retirement plan design and the number of people saving for it. This required 401k providers to adopt automatic enrollment features and have default investment funds other than a money market account. Thus, target date funds became the new default and many people became invested in them without realizing it. This is also true for the employees of companies who change 401k providers. Most people are unaware of what their default investment fund is if they don't specifically look into it. However, it's easy to spot target date funds in your portfolio. These mutual funds are easily identifiable because they have a year in the name, such as the Vanguard 2035 Fund. The year corresponds to the year you expect to retire, often when you turn 65. These funds use a preset mix of stocks, bonds, and cash so that investors don't have to put much thought into who they are investing in. The companies that put together target date funds try to build the best portfolio for someone at their expected retirement age. Compare and contrast By design, target date funds start out as an aggressive investment that gets more conservative the closer you get to retirement. This benefits investors who don't want to keep a close eye on their portfolio as they get ready to begin their third act. Upon reaching retirement age, the fund will remain mostly static, with no more than 50% invested in stocks. When deciding which target date fund to invest in, the first thing you should determine is your asset allocation. This is the percentage you are invested in high risk/high reward investments like stocks, real estate, and commodities versus safer, low-yield investments like bonds and cash.  Once you determine your desired allocation, it's time to pick a target date fund! The key here is research. Look into either the fund you are currently invested in or the other options available to you to see which one is closest to your ideal asset allocation. Additionally, you should rebalance your allocations to make sure you aren't taking a loss or leaving money on the table. Listen to this episode for more information on target date funds! Resources Mentioned The 5 Step Portfolio Process, #17 Vanguard Target Retirement 2035 Fund (VTTHX) Fidelity Freedom 2035 Fund (FFTHX) American Funds 2035 Target Date Retirement Fund (AAFTX) BlackRock LifePath Index 2035 Fund (LIJAX) Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Wade Behlen is the Owner and Managing Director of Retirement Plans/Foundations at WealthPLAN Partners, an RIA that manages the retirement plans of over 250 companies across the country. Passionate about helping companies build “best in class” retirement plans, Wade has spent the last 15 years specializing in retirement plan advising with WealthPLAN and has been recognized as one of the Top 401k Advisors by Financial Times. Wade joins us today to share his insights on the 401K and retirement planning industry. He describes his professional journey and explains why he switched careers from the medical field to retirement planning. He reveals the top reason advisors fail to sell retirement products and offers advice on how advisors can open conversations on retirement planning. Wade also discusses WealthPLAN's efforts in supporting financial wellness education and outlines best practices for turning retirement plan participants into wealth management clients.   “The combination of aggressive and conservative investing works well in the 401k space, where you help business owners set the best types of plans while managing risk.” - Wade Behlen   This week on The Model FA Podcast: Wade's career path and pivot from the medical field to the retirement industry Why being both an aggressive and conservative investor helps in the 401k sector The Pension Protection Act of 2006 and how the 401k space has evolved over the years The importance of relationships in financial services The difference between “specialists” and “dabblers” How WealthPlan partners with businesses and advisors How businesses and financial advisors eliminate risks by outsourcing retirement planning Business development and discovering retirement planning opportunities What cash balances are and how to start a conversation about retirement plans Why advisors fail to sell retirement plans Best practices for converting retirement plan clients into wealth management clients WealthPlan's Auto-Educate program   Resources Mentioned: Book: The 7 Habits of Highly Effective People by Stephen Covey Book: The Dream Manager: Achieve Results Beyond Your Dreams by Helping Your Employees Fulfill Theirs by Matthew Kelly Fearless Investing Summit  - Hosted by Riskalyze - Use Promo Code: ModelFA.com to save $50 on registration tickets!   Our Favorite Quotes: “Whether it's partnering with someone regarding retirement plans or offloading marketing to a different company, it all comes down to leverage so you can grow faster.” - David DeCelle “Perception is reality. If I can be perceived as having a bigger team, it may edify me in the eyes of my prospects.” - David DeCelle “It's difficult to sell a retirement plan in one call. Each advisor has to find their own story and comfort zone, but you have to be bold enough to ask those initial questions.” - Wade Behlen   Connect with Wade Behlen: WealthPlan Group App: Auto-Educate by WealthPLAN Partners WealthPlan on LinkedIn WealthPlan on Twitter Wade Behlen on LinkedIn Email: wade@wealthplan.partners   About the Model FA Podcast   The Model FA podcast is a show for fiduciary financial advisors. In each episode, our host David DeCelle sits down with industry experts, strategic thinkers, and advisors to explore what it takes  to build a successful practice — and have an abundant life in the process. We believe in continuous learning, tactical advice, and strategies that work — no “gotchas” or BS. Join us to hear stories from successful financial advisors, get actionable ideas from experts, and re-discover your drive to build the practice of your dreams.    Did you like this conversation? Then leave us a rating and a review in whatever podcast player you use. We would love your feedback, and your ratings help us reach more advisors with ideas for growing their practices, attracting great clients, and achieving a better quality of life. While you are there, feel free to share your ideas about future podcast guests or topics you'd love to see covered.    Our Team: President of Model FA, David DeCelle   If you like this podcast, you will love our community! Join the Model FA Community on Facebook to connect with like-minded advisors and share the day-to-day challenges and wins of running a growing financial services firm.

Because I included a case study in last week's episode, go back and listen to Aaron's options for a plan to provide LTC and also reduce his tax obligations.  This week, listen and learn about two laws that have been enacted, LTC Partnership Act and Pension Protection Act, to help consumers preserve assets and let insurance companies create tax reducing strategies for policyholders.  Contact me for guidance and plans to meet your unique needs at diane@preparing4tomorrow.com

While saving for retirement has been simplified and streamlined in recent decades, with tools like auto-enrollment and target date funds, the retirement savings ecosystem is anything but simple. It's a complex confluence of innovators, service providers, employers, workers, consultants, lawyers, and, yes, government officials. Regulators play a huge role in our industry, so understanding who they are and how they work is an important factor in the outcomes for plan sponsors and plan participants. In this episode, we speak with two former Department of Labor EBSA directors, Brad Campbell and Phyllis Borzi, about the challenges and opportunities in regulating the employee benefits space, including the enactment of the landmark Pension Protection Act of 2006. Key Takeaways: [:04] Josh opens up today's episode with a quick recap of episode 5 which focused on the work of two innovators in the field. He opens up this part of the conversation on what made the start of Target Date Funds and automatic enrollment so very impactful, the passage of the Pension Protection Act of 2006.   [2:18] Josh explores the regulatory carrots and sticks of EPSA through the eyes of two of its leaders, we begin with Bradfrod Campbell. Brad shares about how he came to shape the world of modern retirement savings as the Assistant Secretary of Labor for Employee Benefits in the United States Department of Labor.   [4:18] The Pension Protection Act was passed while Brad worked as a young Republican, he speaks about his beginnings in the Government and how he found ERISA, enrolled in law school and weathered the Enron scandal.   [8:15] Phyllis Borzy took over Brad's position as the Assistant Secretary of Labor for Employee Benefits in the United States Department of Labor. She talks about how she was always drawn to law and enrolled the year ERISA passed.   [11:14] Her love for ERISA was cemented after her stay in corporate law and she brought it into her career in government all the way up to what she calls the Gingrich revolution.   [13:45] Brad and phyllis had similar challenges but different approaches. Brad talks about the balancing act between carrot and stick.   [15:09] Josh offers a quick explanation of 404C — a pivotal part of the Accidental Plan Sponsor story as well as the Pension Protection Act. Brad weighs in on the way 404C functions.   [19:14] Phyllis shares her profound hate for 404C, her multiple reasons why and what she would do differently.   [22:25] The Pension Protection Act from Brad's point of view — both pre and post Enron — and the legal implications that had to be thought over in that context.   [26:15] More carrots! 404C generated a proliferation of offers without much structure for participants to direct their investment, Brad describes how they helped write the QDIA regulation and define 3 mechanisms for an appropriate default investment that would stand the test of time.   [30:00] Brad shares the difficulties of putting regulations in place, from congress to burgeoning lawsuits inter-administration. Phyllis shares her take and the work she did on the regulation, get ready for some bi-partisan agreement!   [34:44] Phyllis takes a moment to denounce the attacks her co-workers received from the nay-sayers.   [35:54] With overwhelming bi-partisan support, the Secure Act was passed in 2019, Josh touches on some of the issues this rule attempts to address. Brad and Phyllis share their joy having worked on ERISA.   [37:48] Josh thanks his guests for sharing their stories and ends with a taste of what episode 7 has to offer.   Thank you for tuning in. If you liked what you heard, please subscribe and leave us a review wherever you listen to your podcasts.   Links: The Accidental Plan Sponsor   Mentioned in this episode: More about Bradford Campbell. More about Phyllis Borzy.

Episode 130 - For businesses that employ only owners and their spouses, the Pension Protection Act of 2006 extended an unparalleled opportunity to save significant sums in a tax-favored retirement plan. Conventional wisdom of the past few decades was to use a Simplified Employee Pension (SEP). Now there is another choice that may be far better: The Micro(k)® Plan.

Episode 130 - For businesses that employ only owners and their spouses, the Pension Protection Act of 2006 extended an unparalleled opportunity to save significant sums in a tax-favored retirement plan. Conventional wisdom of the past few decades was to use a Simplified Employee Pension (SEP). Now there is another choice that may be far better: The Micro(k)® Plan.

Our guest on the podcast is Jerome Clark. He is the portfolio manager of the asset-allocation target-date strategies and oversees the college savings plan portfolios in T. Rowe Price's multi-asset division. He's also a member of the firm's asset-allocation committee and serves on the multi-asset steering committee. Clark joined T. Rowe's fixed-income division in 1992 as a portfolio manager of the firm's U.S. Treasury Long Term Bond strategy. He began managing multi-asset portfolios in 2001. Before joining T. Rowe Price, Clark was a captain in the United States Marine Corps and a mathematics instructor at the U.S. Naval Academy. He earned his bachelor's degree in mathematics from the U.S. Naval Academy, his master's in operations research from the Naval Postgraduate School, and his Master of Business Administration from Johns Hopkins University. Clark is also a CFA charterholder. For his accomplishments during his tenure, Morningstar analysts recently named Clark the winner of the Outstanding Manager Award at the 2020 Morningstar Awards for Investing Excellence. He's slated to step down from his current role in early 2021.BackgroundJerome Clark bio "Winners of the 2020 Morningstar Awards for Investing Excellence,"  by Sarah Bush, June 22, 2020. "Meet the U.S. Winners of Our Awards for Investing Excellence," by Christine Benz and Sarah Bush, Morningstar.com, June 22, 2020. "Pioneer of Target-Date Funds Looks to the Future: Hedging and 'Tail-Risk' Strategies," by Howard Gold, MarketWatch, July 16, 2020. Target-Date FundsTarget-date fund Liability matching Pension Protection Act of 2006"The Pension Protection Act's Impact on Defined-Contribution Plans," T. Rowe Price, May 2016. "Success Story: Target-Date Fund Investors," by Jeffrey Ptak, Morningstar.com, Feb. 19, 2018. "Mind the Gap 2019," by Russel Kinnel, Morningstar.com, Aug. 15, 2019. "Brigitte Madrian: 'Inertia Can Actually Be a Helpful Thing'," Morningstar.com, April 22, 2020. Glide Paths/Asset AllocationT. Rowe Price Target-Date Glide-Path Design "Beyond Averages: A More Robust Approach to Glide-Path Design," by Lorie Latham, Zachary Rayfield, and Kathryn Farrell, T. Rowe Price, Jan. 16, 2020. "Enhancing the T. Rowe Price Glide Paths," by Jerome Clark, Kim DeDominicis, and Wyatt Lee, T. Rowe Price, February 2020. Retirement Decumulation Sequence risk "The Art and Science of Developing Retirement Income Strategies," by Jerome Clark, Kim DeDominicis, and Wyatt Lee, T. Rowe Price, 2019. Qualified default investment alternative (QDIA)Monte Carlo simulation

Stacey Dion is the Managing Director and Global Head of Government Affairs at The Carlyle Group. Stacey leads The Carlyle Group's global government relations and public policy functions. She is the leader of teams in the U.S., Asia and Europe and employs a strategic, innovative and proactive approach to building best-in-class global government affairs practices. In her current role, Stacey oversees and helps shape Carlyle's global legislative and regulatory activities and is establishing the organization as a resource for public policy insights in government and broader stakeholder circles. Stacey earned her B.A. at Merrimack College, and her J.D. at Catholic University;  She was a pension law specialist for the U.S. Dept. of Labor before transitioning to the House Committee on Education and the Workforce, where she developed, drafted, and analyzed legislation for Committee action; Stacey then became the Tax and Pension Policy Advisor to then-Maj. Leader John Boehner, and was responsible for drafting the Pension Protection Act of 2006; She was then promoted to Policy Advisor and Counsel for Boehner, and was his lead staffer for negotiating and drafting the Economic Stimulus Act of 2008; Stacey then moved on to Boeing as VP of Corporate Public Policy, where she led Boeing's corporate public policy team of executives and analysts; She joined Carlyle in 2017.  Help us grow! Leave us a rating and review - it's the best way to bring new listeners to the show. Don't forget to subscribe! Have a suggestion, or want to chat with Jim? Email him at Jim@ThePoliticalLife.net  Follow The Political Life on Facebook, Instagram, LinkedIn and Twitter for weekly updates.

We continue our conversation about the SECURE Act. Another big piece to this new law is the removal of the stretch IRA. Nick walks us through the things we need to know about this big change.Helpful Information:PFG Website: https://www.pfgprivatewealth.com/Contact: 813-286-7776Email: info@pfgprivatewealth.comFor a transcript of today's show, visit the blog related to this episode at https://www.pfgprivatewealth.com/podcast/Transcript of Today's Show:----more----Mark: Hey, everybody. Welcome into another edition of Retirement Planning Redefined. Thanks for tuning into our podcast about investing, finance and retirement with the guys from PFG Private Wealth. On this episode, just Nick joining me again. That's all right. I like talking to Nick. How are you buddy? Nick: Pretty good. Pretty good. Mark: Hanging in there. Hope you had a good week since the last time we talked. Nick: Yeah, absolutely. This is kind of my favorite time of the year from the standpoint of climate in Florida. Most people are in a pretty good mood overall, including myself. Mark: Well, I'll tell you what, you guys have in the weird weather we are? It's in the 70s in North Carolina. Nick: It's definitely warmer than I prefer, but I know that it's going to kind of cool back down. It's still at least not 90 for four months in a row. I'll take it. Mark: Well, the bad part about the warmer winters is it doesn't get a chance to kill the bugs. I'm showing my old man age there by that, but it's really true. Every year I get older, it's like, man, we do kind of need a cold snap during the winter to kind of kill off some of the stuff that is going to haunt us come spring in summer, right? We don't get rid of some of those bugs. It just makes it that much worse. Hopefully another cold snaps on the way. Nick: You must live near the woods. Mark: Woods or water, man. Woods or water. Nick: There you go. There you go. Mark: You'll get it with that. All right. Well, let's get into our show this week. As I mentioned the last time, we talked about the SECURE Act on our previous podcast. If you haven't subscribed to the show, please do so on Apple, Google or Spotify or whatever platform of choice you'd like. We're all over the place with those. We talked about the increase to the RMD age limit and also the contributions for IRAs with the new SECURE Act. The SECURE Act, as I mentioned before, for those of you who'd just be catching this, that is the most significant piece of legislation the government has passed for our listening audience since really the Pension Protection Act of '06. The SECURE Act is setting every community up for Retirement Enhancement Act. Mark: This was $1.4 trillion budget piece that they kind of snuck it into at the end of December there last year in 2019. This week we're going to talk about a really big component, Nick, and that is the elimination or the altering of what was termed the stretch IRA. Really a lot of people they're saying this is the big negative to this piece of its great for the government because is basically a tax generating... This is the way to create more tax income for the government, but not so great for folks who planned on using this as a generational tool, which is primarily what it was done for to leave wealth to their heirs. Nick: Yeah, absolutely. It's going to have a pretty significant ripple effect from the standpoint of people that were planning to leave their IRAs or maybe had adjusted the way that they were taking from their investments throughout retirement and trying to preserve the IRA to pass. That's going to have a pretty significant impact on that. Plus it's also going to probably cost some people some money in legal fees as they adapt and adjust their estate plans and legal documents to take these sorts of things into account. Mark: Yeah, absolutely. What was the stretch or kind of give us a quick overview and then what they've done to alter it? Nick: Yeah. One of the things I always kind of tell people is from the standpoint of a stretch IRA is that it's really kind of a nickname and it's a concept. A joke that I would kind of make is if somebody passed away and you had inherited funds that were in an IRA and you walk into the bank and you tell the bank teller that you want a stretch IRA, they may look at you cross-eyed. It's not an actual legal name for an account type. The real kind of legal name for the account type is an IRA BDA or a beneficiary designated IRA. Essentially what happens is if you inherit IRA funds or you're listed as a beneficiary on an IRA, there are kind of two classifications for how they look at or at least that's kind of been the rule up to now where it's either spouse or non spouse. Nick: The way that it would work is that if you were to inherit an IRA from a spouse, you could either put those funds into your own IRA, or you could put it into the beneficiary designated IRA. The rules for withdrawals would kind of dovetail from there. For a non spouse, you would also open it as a beneficiary designated IRA. But then the required minimum distributions that would have to be taken from that account would be based upon multiple factors, including your age, the year at which the person passed whether or not they had started taking distributions already, et cetera, et cetera. There are some different rules that went on with that, but in theory you could really stretch that over your entire lifetime by taking the minimum out, and you could also list a beneficiary yourself on the account. Mark: The reason for doing that was to if it was a larger account for tax purposes, right? Nick: Absolutely. Let the account continue to compound, avoid taking out in a lump sum and having to pay taxes on the entire lump sum amount. Because just as a reminder for people, when you inherited a traditional IRA or traditional IRA funds, the full account balance has... Taxes are due, federal taxes. If you live in a state where you pay state income taxes, income taxes are due on that full amount. That could be a pretty significant kind of tax bomb dependent upon what happened, especially if you made a mistake in how you had to take it out. Really this new provision essentially applies to people that are going to inherit these funds starting on January 1st of 2020 moving forward. It is not a retroactive rule. Essentially what it does is it says that you must deplete that account within 10 years. Nick: From what I've seen so far, correct me if I'm wrong, the rules on how you need to take out distributions within those 10 years are not as strict as they used to be. However, that account needs to be depleted within the 10 years. Mark: Right. Yeah. You can do it over like annually obviously, but at the end of 10 years, whatever's left, you got to pull it out and pay the taxes. Nick: But you can defer within those 10 years as well. Mark: Yes. Nick: Again, that could create a pretty big tax bond dependent upon the size of the account. There's a little bit of a flexibility and a little less accounting or paperwork on trying to track those required minimum distributions that would have to come out and the amount on are you doing it correctly, are you calculating it correctly, or some people most likely, and we haven't gotten into it yet with any clients with it being so early in the year, but my assumption is dependent upon the overall situation, people are going to probably take it out equally over the 10 years or try to defer and be a little bit strategic with how they take it out dependent upon maybe there's an impending retirement. Maybe a husband and wife are 60 years old and they both plan on retiring at 65. Nick: Wife's father passes away, leaves them money in the inherited IRA. Our goal is going to be that we're going to take it out post retirement where the income has come down, try to minimize the taxation, and maybe even let that fill in the income hole that they have between 65 and 70 or even 65 and 72 now that the RMD age for their own accounts has bumped up to 72, and they can let their own account kind of accumulate and grow and defer accordingly. It will definitely add another level of strategy and just kind of thinking outside the box a little bit so that we don't have to deal with that, but it's going to be interesting to kind of adjust and adapt to the new rules. Mark: Oh yeah, for sure. Now, for some of those folks listening who are thinking about this now, I do know there are definitely some exceptions I guess if you will, if you want to call them that. There are definitely some pieces to ponder when it comes to some exceptions I guess if you will. Obviously if you're a spouse, that kind of stays the same. This is really kind of targeting the heirs, so like basically if you were leaving this to your kids, but there are also a couple of exceptions there like chronic illness I think is one. There's a couple of others as well. Nick: Yeah, chronic illness is definitely one. If there's a disability, that changes and adds a different set of rules. Those sorts of kind of deeper details are the things or the aspects of the new legislation that everybody's kind of digging through. The attorneys are kind of reading through all the paperwork to make that everybody has a really good grasp and understanding of what those exceptions are and how those funds can be used. Attorneys typically do a good job of interpreting the new rules and laws and coming up with new strategies that allow us to work around them a little bit. Mark: Yeah, no, that's a great point. That's why it's really important to talk with your advisor about how this may affect you if you are planning on leaving. A lot of people do that. Some people are saying, Nick, with the way this whole SECURE Act is working together with the increase to the RMD limit at 72, age of 72, and then with this, a lot of folks, they're kind of looking at it saying it's a tax grab for the government, which of course, I mean, it's always something, but it's one of those deals where if you're living longer and you're putting more money and you don't have to take it out and you choose to leave it to your heirs, like these IRAs or whatever, then that's kind of where this is coming from. Mark: That's kind of how the two pieces of the puzzle in some people's minds are working together in order to generate more tax revenue for the government. It's certainly a piece where you want to talk with your advisor about how you can now be planning more efficiently. Nick: Yeah. As an example with that, just kind of a thinking outside the box and how people may adjust and those sorts of things, if there are substantial funds in the IRA and it's important to you to try to leave money to your beneficiaries, this change in the law may kind of push people to look a little bit more at using a tool like a permanent life insurance policy where they're going to use their own distributions that they're taking from their IRA in retirement, apply some of those distributions towards a life insurance policy that is going to pay out tax free after they pass on and avoid that potential tax bomb that the IRA would leave. Mark: Got you. Nick: There's different things. The fun part, and we can put that in quotes as far as the fun part, but the part that we enjoy the most as far as financial planning and retirement planning, et cetera, is that people are different. There are enough rules, laws, product strategies, et cetera, that there's usually something for everybody. It's just important for us to kind of get to know them, figure out what's most important to them, and adapt and adjust the strategies that we recommend so that it fits within their life and what they're trying to do. This is just another change that we take it into account. We adapt. We adjust. One of the things that we always preface, and this is a really good example of why is... Nick: In these classes that we teach, one of the most common questions that people will ask us is, should I contribute money to a traditional IRA or a traditional 401k or Roth IRA or Roth 401k? They start to understand by the end of the class together that we say it depends for a reason, things change. The only thing that we know for certain is that things will change. This is a great example. We always emphasize building in the ability to be flexible and adapt to whatever changes we do have happen to us so that we aren't all in on one certain strategy that we have no control over whether or not it changes. This is just a perfect example, and it emphasizes even more that it's important to have multiple sources of income in retirement, multiple account types. Nick: That goes for the funds that you're going to use in retirement, as well as the funds that you want to leave in retirement. Mark: Got you. Got you. Okay. That's why we kind of preached that on the show that anytime you hear anything, whether it's our podcast, somebody else's, a different show, a radio show, a television show, you may be hearing some information that kind of peaks up your ears there and kind of gets you to thinking about something. But before you take any action, you should always check out what's going to affect your specific situation by talking with a qualified professional financial advisor like the team at PFG Private Wealth, John and Nick here on the podcast. As always, we're going to sign off this week. Really good information here on the show. Mark: If you've got questions about how the stretch IRA, the removal of that or the changes to that are going to affect you or how the SECURE Act in general is going to affect you, make sure you talk with your advisor or reach out to John and Nick at (813) 286-7776 here in the Tampa Bay area, (813)-286-7776. You can also find this online and subscribe to the podcast via the website pfgprivatewealth.com. That's pfgprivatewealth.com. You can subscribe on Apple, Google, Spotify, iHeart, Stitcher, whatever platform it is that you choose. Nick, my friend, thanks so much for your time this week. I appreciate you. We'll talk more I'm sure about the other components of the SECURE Act and how it's going to affect things in the weeks to come. Nick: Thanks, Mark. Have a good day. Mark: You do the same, and we'll see you next time right here on Retirement Planning Redefined.

After it simmered in Congress for a year, the SECURE Act is now law. If you have a retirement account of any kind, or will one day inherit a retirement account, this will affect you. Today Nick will discuss the details around the new age specifications.Helpful Information:PFG Website: https://www.pfgprivatewealth.com/Contact: 813-286-7776Email: info@pfgprivatewealth.comTranscript of Today's Show:----more----Speaker 1: Hey everybody, welcome into another edition of Retirement Planning Redefined. Into 2020 with our first podcast of the new year, joined this week with just Nick on the show with me. Nick McDevitt joining me here from PFG Private Wealth. Nick, buddy, what's going on? How are you?Nick M.: Just recovering from the holidays and getting ramped up for the new year.Speaker 1: Yeah, aren't we all? It's so weird. Are you used to 2020 yet? I don't know, it's a weird number to me.Nick M.: It is weird. Honestly, I was having this conversation with somebody the other day and the craziest thing to me is, with the age that I am, my grandparents were born in the early 30s, late 20s and it takes me back to thinking about in grade school, learning about The Great Depression and realizing that, that was 100 years ago almost.Speaker 1: Yeah.Nick M.: World War I and how far back, growing up in the 90s, how far back the 20s seemed and now here we are again.Speaker 1: Yeah. Well, to that point, I'm a little older than you is, my dad was born in '32. Actually my grandfather was born in 1890, go get that. And here it is 2020, so that just totally trips me out. My family had this weird and I'm only 50. But my family had this weird tradition of having, well, they had a lot of kids back in the day, but then they also had them late. My dad was 40 when I was born and so on and so forth. So yeah, maybe that's why, my wife's grandfather was born at the same time my dad was, and it's just really weird how different people's family dynamics work.Speaker 1: But to that point, 2020 is bringing us a lot of change obviously and we're going to spend probably, we're going to the next two podcasts around this topic, but obviously we're going to have an election later this year. The market popped 29,000, the DOW did for the first time, actually I think has done it twice now. It went over and then went back down at the time of this podcast taping, here in the early couple of weeks of January. So we'll see. It didn't drop very much, but it's gone over and down. So that's new records and new things happening, a lot of stuff.Speaker 1: But out of all of that, one thing that really affects our listener base here for retirees and pre-retirees is the passing of The Secure Act. We talked about it months ago that it was sitting before the house and it looked like it was dead, The Secure Act. But then all of a sudden in December, there at the end, they slipped it through with some budget stuff. So let's talk a little about The Secure Act this week, shall we?Nick M.: Yeah, yeah. For sure. I was pretty surprised that it pushed through as quickly as it did. I had some clients that touched base towards the end of the year. And I told them what I always tell everybody from the standpoint of once it's passed and it's done, then we can talk about it.Speaker 1: Yeah.Nick M.: Because there's always little adjustments and amendments and things like that, that are made. But a lot of the key aspects carried through. And so we're still pouring through the details or really getting into the nitty gritty. But we figured today, we could at least cover one of the topics.Speaker 1: Yep, sure.Nick M.: And focus on that.Speaker 1: Yeah, we're going to do that with this week's podcast and next week. We're going to cover the two biggest components that it pertains to a lot. There's multiple facets to The Secure Act and like any piece of legislation, there's good and there's bad. And of course, the government had to give it this name, secure. So for folks who are wondering, it actually is an acronym, it's setting every community up for retirement enhancement. So that's a mouthful.Nick M.: Yeah, I always wonder how many people got in a room to try to figure out those sorts of things and how long it took them.Speaker 1: How much money they spend just coming up with a name.Nick M.: Yes, yes. And it actually takes away, fortunately, as you alluded to, the biggest aspect of this is changing the age at which required minimum distributions are required.Speaker 1: Let's get into it.Nick M.: From 70 and a half, to 72 years old.Speaker 1: Yeah.Nick M.: Which ruins one of my favorite jokes about, again, the previous rule was so confusing to so many people and so absurd to make it a half a year and people trying to figure that out. We're constantly befuddled, so now this is pretty cut and dry and pretty easy for people to understand, which I think it is probably a bigger benefit even than the increase of age.Speaker 1: Well, okay, so let's dive into that a little bit. So they did raise the RMD limit to 72, as Nick just mentioned. That's the required minimum distribution, was 70 and a half. Now we should say Nick, to clarify, that if you have already started your RMDs at that 70 and a half threshold, it's not like grandfathering but you have to stick with that. So make sure you are talking with your advisor about that. You don't get to switch.Nick M.: Correct, yes. So if you turn 70 and a half before 01/01/2020, then you are-Speaker 1: On the old system, yeah.Nick M.: So it's everybody from 2020 moving forward, which again is a positive. A lot of people are working longer. And for those that don't need the full distribution, defer income to live on, it helps them accumulate and grow money for a longer period of time.Speaker 1: Right.Nick M.: We're definitely a big fan of the change.Speaker 1: Yeah. And I think it needed to be done. I think from that standpoint, it's good and it does clear up that confusion piece, but we just have to get through this initial weirdness, right, for folks who maybe just turned or are just planning at the end of last year, that kind of thing. So there may be a few areas where you want to try to have that conversation with your advisor about where you fall in that. So it's certainly a piece you want to ask.Speaker 1: So as you're listening to this podcast, if you are new to our podcast and you're not working with John and Nick yet, make sure you reach out to them. If you're working with another advisor, ask them that same question, how it's going to affect you because you still don't want to get hit with that God awful penalty that the RMDs have, which is 50%.Nick M.: Correct. Yeah. So just as a reminder for everybody, when those required minimum distributions are calculated. And from my understanding, again, we're digging through all the language, the actual tables that are used to calculate the amount of money that has to come out, those tables themselves haven't changed. So it's just the time that you can wait as a little bit longer.Speaker 1: Right.Nick M.: And as a reminder to everybody, as an example, let's say that the required amount needed to come out as $50,000. And for the last three years you've been taking out $2,000 a month from your account or $24,000, the penalty would be the difference between the amount due, which is 50, minus the 24,000 so 26,000. It's 50% of that $26,000 so it'd be a $13,000 penalty, which is absolutely not a penalty that you want to participate in.Speaker 1: No, that's like a death sentence and it's just terrible. I mean, so they don't mess around when it comes to making sure you do that. Now this piece of legislation, by the way, The Secure Act, folks, it's the most significant change since the 2006 Pension Protection Act that has come through. And there's like I said, there's a lot of components. We're just going to talk a little bit about the age limit today. And along with that line, Nick, they also did eliminate age limits for contributions. So tell us a little bit about that.Nick M.: Correct. So previously, if somebody had a traditional IRA and they were continuing to work, so as a reminder for everybody, if you want to be able to contribute to a retirement account, you must have earned income. So for those people that were maybe, let's say, one of the things that we'll see a lot is, to keep themselves busy, people would work a part-time job, so they would have earned income. And they were over 70 and a half and they weren't necessarily working for the income. Of course, some are. But for example, even if you weren't, if you were over seventy and a half, you could not contribute that money into a traditional IRA, even though you had the earned income.Nick M.: So that rule or that restriction has been lifted. So it allows people that are working longer, which is much more common than it used to be, to be able to add money to the traditional IRA and dependent upon other factors, to potentially deduct that. So that's a nice bonus because the other thing that happened is, because even if you were working in and this is how some of these two tie together. Let's say you're 71 and you were still working and you had IRA money and 401k money. Previously you would've had to take your RMD out of the IRA, although you could defer or wait on the money that was in the 401k for a business owner. So now that extra year and a half buffer, it can really, on some situations, it can really have a significant impact for some people on avoiding having to pay as much in taxes.Speaker 1: Yeah. And it really also expands the opportunities for backdoor Roth conversions, as well for older clients, so that's nice as well.Nick M.: Yes, absolutely. And for those of you whose ears perked up a little bit on the Roth conversion, there's a lot of caveats and we're actually going to have a podcast in the future that talks specifically about those. There's some hoops that you have to jump through, but that can be a really good tool to be able to use to produce some Roth money.Speaker 1: Exactly. So yeah, make sure you subscribe to the podcast. That's a great segue for me to mention that. We are going to talk next time about the stretch IRA and what happened to it in The Secure Act. So by subscribing to the podcast, you'll get notifications for new episodes and really that's pretty much it. So it's a pretty easy thing to do. We just let you know about new episodes. You can listen to past episodes and you can find it a couple of ways. Whether Apple or Google or Spotify or whatever is your platform of choice, you can simply search on their a window, like if you're on Spotify and hit search. You could certainly just type in retirement planning redefined and get us that way or Apple or whatever platform you choose.Speaker 1: You can also go to the guy's website@pfgprivatewealth.com. John and Nick have got the site there for their service, for their company. And while you're there, there's the podcast page. You can check that out. So that is pfgprivatewealth.com. That's pfgprivatewealth.com and you can also call them. As we mentioned before, it's very important. There's a lot of changes, a lot of components to The Secure Act. We're just going to cover over the next couple of episodes what's going to affect most of our listening audience, but there are a lot of little pieces, so you want to make sure you're having a conversation with your advisor and about the planning opportunities that may arise from these changes in The Secure Act law.Speaker 1: Call John or Nick, give them a ring at the office there, if you need to talk with them. (813) 286-7776 in the Tampa Bay area, (813) 286 7776. Anything you can think of extra this week about the RMD component or shall we say goodbye for this week and hit it up next week?Nick M.: I think we're good to go.Speaker 1: With that, we'll say goodbye for this week on the podcast. So again, talk to your advisor about the RMD age limit change with The Secure Act. Reach out to John and Nick if you need a second opinion and we'll catch you next time here on Retirement Planning Redefined.

This week on the podcast, we update some important developments out of Washington related to retirement that occurred just before the holidays.Congress wrapped up the year passing a massive $1.4 trillion omnibus spending bill. Usually with legislation like this, a lot of unrelated legislation gets tacked on and moved through, and this was no exception.One important piece of legislation was included in the bill - and another was not.The bill that did pass is called the SECURE Act. It’s a grab-bag of retirement policy ideas that have been bouncing around Washington for a number of years. But it is important because it’s the only piece of significant retirement legislation to be passed in Washington since 2006, when the Pension Protection Act was signed into law. Laws like this really do make a difference over time. The PPA ushered in some major positive changes like the widespread adoption of target date funds and automatic enrollment of new workers in retirement plans.My guest on the podcast this week will talk with us about what’s good about this bill from a financial services industry perspective. Melissa Kahn is managing director of retirement policy for the defined contribution team at State Street Global Advisors. She is an attorney with extensive experience in the world of employee benefits and regulation. Before joining State Street, she worked as a consultant in the industry and also for more than a decade working in the life insurance business. So she is going to give us a good idea of the arguments the industry has mounted in favor of this bill. There really are two keys things to know about this law. First, it clears the way for a new type of 401k plan aimed at making it easier for small employers to offer retirement plans to workers. They are called open multiple employer plans - or MEPs for short. Small businesses are the least likely to offer plans, so the idea here is that small employers can join plans that would be offered by private plan custodians, like a Fidelity, Vanguard or Schwab. The hope is that small businesses will be enticed by low costs and streamlined paperwork, and an increased tax credit to cover their setup costs.  The jury is out on whether that will really happen. I’ve written a number of stories on open MEPs over the last year or two and will include links to them in the subscriber edition of the newsletter this week.Second, the SECURE Act contains a provision that makes it easier for 401k plans to offer annuities. It creates a so-called “safe harbor” that protects plan sponsors from legal liability if anything goes wrong with the insurance  company offering the annuity. Instead, it relies on state insurance regulators to certify the safety of the annuity provider.This is really where the SECURE ACT got its push - the insurance lobby has been salivating over this for years and wanted to see it get done.Don’t get me wrong - a serious case can be made for some people to use annuities in retirement. But they’re not right for everyone. One worry here is whether there will be enough education for 401k participants on annuities, when to use them and how. Another major concern: what type of annuities will be offered? Consumer advocates urged Congress to limit the safe harbor in SECURE to cover only simple income annuities. They argued against including things like fixed-index and variable annuities are too complex and confusing for regulators to police, and for participants to understand. They lost on that point.I do think we’re going to see a big push by the companies that administer plans to get annuities into workplace plans. Employers probably will take a conservative approach to it. But we’re already starting to see new products start to take shape, like target date funds with annuities built in. Expect to see more of that.The SECURE Act also includes a couple other significant changes. It boosts the age when you need to start taking required minimum distributions from tax deferred accounts from 70 and a half to 72 and a half. And it phases out the use of stretch, or inherited IRAs. That last one has important implications for people with large tax-deferred accounts who hope to pass those assets on to heirs. (I’m working on a separate story about that which will be published soon.)The second thing I wanted to mention about the omnibus spending bill is something that didn’t make it into the legislation. That is a fix for the looming meltdown in multiemployer pensions. Don’t confuse this with the multiple employer plans I just mentioned. This is very different. These are traditional pension plans created under collective bargaining agreements by groups of employers in industries like construction, trucking, mining and food retailing. More than 100 multiemployer plans covering 1.4 million workers and retirees are underfunded and sponsors have told regulators and participants that they could fail within the next 20 years. The problem is worsening, but Democrats and Republicans in Congress haven’t been able to come up with a plan they can agree on. House Democrats passed a plan last July built around providing low-interest loans to struggling plans. But the Senate has a very different plan. It increases the insurance premiums that plan sponsors pay into the system, and adds new premiums that would be paid by retirees as well, which would effectively act as a benefit cut. It also contains reforms to the discount rate assumptions plans use to project the future health of plans. So Congress is stuck, and by one analysis 44 plans will fail by 2025. They did manage to come up with a bailout for one fund that is on track to fail by 2022 - which is sponsored by the United Mine Workers of America plan. Having a powerful friend like Senate Majority Leader Mitch McConnell - from a big coal producing state - didn’t hurt in getting that done.To hear my interview with Melissa Kahn, click the player icon at the top of the page. One word about this - we taped this discussion just before the holidays, as the Secure Act was headed for passage, so you’ll hear some discussion along that line at the start of our conversation.Subscribe now!This is a listener-supported project, so please consider subscribing. The podcast is part of the subscription RetirementRevised newsletter. Subscribers have access to all the podcasts, plus my series of retirement guides on key challenges in retirement. Each guide is paired with a podcast interview with an expert on the topic; the series already covers Social Security claiming and the transition to Medicare, and how to hire a financial planner. The most recent looks at the critical decision between Original Medicare and Medicare Advantage. Readers also get my weekly summary and analysis of key developments in retirement. This week, it includes analysis of the latest polling of voters on Medicare for All, why we’re headed for a severe shortage of geriatricians to care for the elderly and an ill-advised plan to let ordinary retirement savers invest in risky private equity deals.You can subscribe by clicking the little green “subscribe now” link at the bottom of this page, or by visiting RetirementRevised.com. And if you’re listening on Apple Podcasts, Spotify or Stitcher, I hope you’ll leave a review and comment to let me know what you think. This is a public episode. Get access to private episodes at retirementrevised.substack.com/subscribe

Today's episode takes a deep dive into recent developments following the death of Republican operative Thomas Hofeller -- the architect of the REDMAP -- that may impact the census question case currently pending before the Supreme Court, Department of Commerce v. New York. First, however, we begin with an Andrew Was Wrong about the 2006 midterm elections and the Pension Protection Act. That was, in fact, a Democratic wave year -- but the PPA was passed in August, nearly five months before that new Democratic congress was seated. Oops. Then it's time to delve into the strange files of Thomas Hofeller, the architect of REDMAP -- you know, the gerrymandering strategy and software that turned Republican minorities into majorities in states like Wisconsin and tiny Republican majorities into one-sided dominance in states like North Carolina. Want to know his plan for helping "Non-Hispanic Whites?" Of course you do! We break down exactly how this development may affect Dep't of Commerce v. New York, which has already been briefed and argued before the Supreme Court, and the interesting strategy that the respondents used to make SCOTUS aware of what Hofeller was up to. After all that, it's time for the answer to Thomas (and the Entire Puzzle in a Thunderstorm Crew) Takes the Bar Exam #129 involving comparative negligence, joint and several liability, and intra-family liability in connection with a car accident. Did you get it right? Remember you can play along every Friday by sharing our show on social media using the hashtag #TTTBE. Appearances Andrew was just a guest on Episode 98 of the Skepticrat breaking down everyone's second-favorite Democratic 2020 Presidential contenders; you won't want to miss it! And if you’d like to have either of us as a guest on your show, drop us an email at openarguments@gmail.com. Show Notes & Links We first covered the citizenship question on Episode 232 You can access the briefs filed in Department of Commerce v. New York: Here This is the letter filed by respondents and copied to the Supreme Court setting forth the new evidence relating to Hofeller. And, in the interests of balance, here's the response filed by the government. And finally, here's the ruling and scheduling order from Judge Furman in the District Court case (No. 18-2921) setting forth the time to brief and seek discovery regarding potential sanctions on the government witnesses. -Follow us on Twitter:  @Openargs -Facebook:  https://www.facebook.com/openargs/, and don't forget the OA Facebook Community! -For show-related questions, check out the Opening Arguments Wiki, which now has its own Twitter feed!  @oawiki -And finally, remember that you can email us at openarguments@gmail.com!

Schedule a Consultation - Click here to get your free book Today I’m covering another facet of Auto to the 5th Power, automatic re-enrollment. You have can actually re-enroll your employees into that Qualified Default Investment Option, or QDIA, to provide incredible protection for you as a plan sponsor and help your employees save money to create that paycheck for life. If you’d like to skip ahead and learn all the secrets on how to create the best possible retirement plan for yourself, I’d be happy to get you a copy of my book, “Save America, Save! The Secrets of a Successful 401(k) Plan.” I’d also like to get you a copy of my first book, “Paychecks for Life: How to Turn Your 401(k) into a Paycheck Manufacturing Company.” It contains my nine secret recipes for how your employees can create a paycheck for life. Click here to get your copies. “As the employer, you are protected under the Pension Protection Act of 2008.” In addition, if you’d like a free benchmarking analysis of your retirement plan, we’d be happy to do that for you. Just send an email to Matt Gilmore in my office at mgilmore@epsteinfs.com or give him a call at (413-539-2379). Now onto our topic for today. Automatic re-enrollment is the option where you send out a 30-day notice and tell people that if they do not want a change in their investment options, they need to let you know. Otherwise, there are going to be automatically re-enrolled into that QDIA investment option. Don’t forget, you as the employer are protected under the Pension Protection Act of 2008. If you have any other questions, please feel free to give me a call or send me an email. I look forward to hearing from you.

Imagine you’re getting ready to go on a great vacation and as your plane gets ready for takeoff, the flight attendant says, “Ladies and gentlemen, the captain would like me to inform you that there is an 85% chance that we will not get you to your destination on time and safely.” Are you going to stay on that flight? No way! Not with an 85% chance of failure! What we have learned in our 30 years of experience working with 401(k)s is that 85% of your employees have an 85% chance of not making it to retirement on time and safely. That’s what this series is going to be all about. We have written a book called “Tracking Retirement” where we used our experience to put all the secrets to creating a successful 401(k) plan together in one place for both you and your participants. Our goal is to help you help them to create paychecks for life for themselves. “We have put all our expert advice in one place.” Over the course of the next year, we’ll discuss topics surrounding your 401(k) and ways you can improve it for yourself and your participants. We will be sending a video out every other week covering a 401(k) topic, including how to reverse engineer your 401(k) expenses to reduce plan costs and how to get Uncle Sam to pick up 30% or 40% of the bill. The Pension Protection Act says that if you use specific automatic features in your 401(k), you can get complete fiduciary liability. Guess what? Those same features improve the quality of the plan for those participants trying to create those paychecks for life. If you like what you’ve heard so far, stay tuned for our next post. If you have any questions in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.   (Securities and advisory services offered through FSC Securities Corporation, member FINRA/SIPC. Michigan 401(k) and Financial Independence are marketing names.)

Schedule a Consultation - Click here to get your free book Today I’m going to be talking about something I like to call Auto to the 5th Power. This is a way that you can use technology to automate savings for your employees and make your life easier, especially if you’re an HR director trying to get people to enroll in their retirement plans. So what exactly is Auto to the 5th Power? It’s actually a series of automatic features that you can use in your retirement plan to get your employees engaged in their retirement plans. This means getting them enrolled, getting them to increase their savings, and also providing greater protection for you as a plan sponsor. Today we’ll be taking a look at the top two automatic features. I’ll show you why they are so beneficial and how you can put them into action. The first feature is automatic enrollment, which is one of the easiest ways to save time, money, and effort. Instead of sending out a retirement form to your employees that may or may not ever be returned, all you need to do is send out a 30-day notice to your employees notifying them that when they are eligible for the retirement plan, they will automatically be enrolled in the plan at a set rate. For example, if your match is 50% on 6% you might want to set that contribution rate at 6%. The government will allow you to go as low as 3%, so that is an option if you’re worried about taking too much out of your employees’ paychecks right away. We personally always recommend setting the contribution rate at whatever the match rate is. After all, the name of the game is getting people to save for retirement, and people usually need to save about 10% a year. Now, you’re probably not going to automatically enroll at 10%, but the key to automatic enrollment is in the 30-day notice. You’re covered because you gave your employees notice, and your employees have the option to opt out. However, 70% of people who are automatically enrolled in the plan stay in the plan. “The name of the game is getting people to save for retirement.” The second feature is called automatic QDIA. A QDIA is a qualified default investment option. Say you automatically enroll an employee into the retirement plan but they don’t pick their investments. What’s a plan sponsor to do? Under the Pension Protection Act, you can automatically enroll them into something called the Qualified Default Investment Option. Typically a QDIA is going to be some sort of lifestyle fund, but it could be a customized option based on the employee’s age. As with automatic enrollment, the key to the QDIA is all about the notice. You have to send them something that tells them if they don’t make an election, you’re going to make the election for them. Provided you do investment due diligence on that investment option and document that you are monitoring that investment, you’ll be protected under the Pension Protection Act, which means you can’t be sued for making that investment choice for your employee. The bottom line is, using automatic features is easy, convenient, faster, and cheaper. Also, if you do your due diligence, you are completely protected thanks to the Pension Protection Act. In the end, your employee is the person who wins as they are saving money to create that paycheck for life. If you have any questions please feel free to send me an email or give me a call. Additionally, if you’d like an analysis of your retirement plan, you can reach out to Matt Gilmore in my office by sending him an email or giving him a call as well. We’d be happy to help!

Schedule a Consultation - Click here to get your free book Picture this: you’re getting ready to go on a great vacation. You’re standing at the airport gate when all of a sudden, the agent comes on the intercom and says, “The captain would like me to announce that there is an 85% chance that this flight will not make it to your vacation destination on time and safely. Have a nice trip!”  Are you going to get on that plane? Of course not! Why? Because there is a significant chance that you won’t make it there safely or on time.  In my 36 years as America’s 401K Coach, I’ve learned that there is an 85% chance that 85% of your employees in your retirement plan will not get to their destination—retirement—on time and safely.  That is why I’m starting this video blog. I will share all of the secrets to creating a successful retirement plan with you. You can even click here to get a free copy of my book, Save America, Save! so that you can learn all of my secrets right away.  “I can help you create a paycheck for life.” Over the course of the next year, I’ll send you a series of videos talking about everything that you can do as a plan sponsor to help your employees create their own paychecks for life. In fact, my first book, Paychecks for Life, has sold more than 20,000 copies. I highly recommend that plan sponsors read it so that you can pass valuable information on to your employees; click here if you are interested.  Every two weeks, you will get a video featuring one of my secret recipes. For example, you’ll learn how to reverse engineer the expenses for your retirement plan. You can reduce them or get Uncle Sam to pay 30% to 40% of those expenses. I’ll also discuss automatic features, part of the Pension Protection Act that provides complete fiduciary protection for you as a plan sponsor. If you take advantage of these powerful tools, you will help your employees save enough money to create that paycheck for life. If you have any specific questions, give me a call or send me an email and I’ll answer you with a video.  I look forward to hearing from you!

If you are interested in growing your retirement money faster, reducing your risk paying less tax this episode is a must listen. You must align your interests with the financial institutions and the central banks as they are most powerful monetary entities in the world. As you build your income property portfolio you need to put your money in a retirement account which allows you to self-direct your funds without paying high taxes or penalties. The Solo 401k is a vehicle you can use to defer taxes and manage as a resource. Guest expert, Jeff Nabers, created the complete Solo 401k and designed an online tool so you can calculate possible risks before making major investment decisions.   Key Takeaways: [2:22] The Solo 401k was based on the Pension Protection Act of 2006. [4:26] The 3 main advantages of a Solo 401k. [11:19] There are two qualifications which differentiate a Solo 401k from a traditional Roth IRA.   [16:19] The Solo 401k allows you to invest $18,500 of your self-employment income. [17:53] The IRS puts real estate investors in two categories one is a business and the other is a dealer. [22:23] The rules of an IRA are much stricter than the rules of a Solo 401k. [25:47] The most powerful thing an investor can do is to diversify. [27:49] Health care costs and college tuition are impacted the most by inflation. [28:11] The present value of money versus the future value of money and the lost opportunity costs of paying taxes on an IRA now.   [32:42] It's impossible to know how the government will tax retirement plans in the future.   [38:13] Jeff Nabers' company set up the only complete Solo 401k and designed an online tool. Website Mentioned: http://solo401k.com/creatingwealth

If you are interested in growing your retirement money faster, reducing your risk paying less tax this episode is a must listen. You must align your interests with the financial institutions and the central banks as they are most powerful monetary entities in the world. As you build your income property portfolio you need to put your money in a retirement account which allows you to self-direct your funds without paying high taxes or penalties. The Solo 401k is a vehicle you can use to defer taxes and manage as a resource. Guest expert, Jeff Nabers, created the complete Solo 401k and designed an online tool so you can calculate possible risks before making major investment decisions.   Key Takeaways: [1:21] Financial institutions and central banks are the most powerful entities the human race has ever known and we should align our interests with them. [6:50] Using the leverage of your 20% down on a property increases your power by 500%. [8:35] The Newser Wells Fargo article: Details about the 185 million dollar fine. [14:38] The Creating Wealth seminar is now part of the package available at Hartman Education.     Jeff Nabers Guest Interview: [16:35] The Solo 401k was based on the Pension Protection Act of 2006. [18:39] The 3 main advantages of a Solo 401k. [25:32] There are two qualifications which differentiate a Solo 401k from a traditional Roth IRA.   [30:32] The Solo 401k allows you to invest $18,500 of your self-employment income. [32:06] The IRS puts real estate investors in two categories one is a business and the other is a dealer. [34:36] The rules of an IRA are much stricter than the rules of a Solo 401k. [40:00] The most powerful thing an investor can do is to diversify. [42:02] Health care costs and college tuition are impacted the most by inflation. [42:34] The present value of money versus the future value of money and the lost opportunity costs of paying taxes on an IRA now.   [46:54] It's impossible to know how the government will tax retirement plans in the future.   [51:26] Jeff Nabers' company set up the only complete Solo 401k and designed an online tool. Mentioned in This Episode: Jason Hartman Hartman Education Solo 401K - Free Demo for Creating Wealth Subscribers

In episode #8 we talk about the new disclosure requirements to let employees know how much THEY have been paying in 401k fees, the media spin, and what you can DO about it. 00:57 Pickpocketing. 01:58 The Marketing Spin. 03:33 The Pension Protection Act. 04:38 $3.4 TRILLION Dollars. 06:22 No Annual Fees. 08:13 Petition. 09:23 Listener Bonus

The Baruch Business Report offers a conversation between John Elliott, the Dean of Baruch's Zicklin School of Business, and Terrence Martell, Saxe professor of Finance and International Business in Baruch's Zicklin School of Business. The discussion starts with the results of the third quarter "Chief Financial Officers Outlook Survey," which is conducted quarterly by Financial Executives International and Baruch College's Zicklin School of Business, and continues into a larger economic analysis. Elliott and Martell also discuss the expected impact of the new Pension Protection Act. The survey results are described on Baruch's website at http://www.baruch.cuny.edu/cfosurvey/. The conversation takes place on October 23, 2006.

Bob Keebler teams up with Mike Jones to give LISI members the scoop on Roth Recharacterizations with Required Distributions. LISI wants to let you know about Bob's upcoming Two Day IRA Seminar for Lawyers, CPAs and Financial Advisors - ?What the Lawyer, CPA and Financial Advisor Need to Know About Sophisticated Planning and Drafting for IRA & Qualified Plan Distributions Including How to Plan with a $5,000,000 Exemption? The seminar provides extensive coverage regarding planning with retirement accounts including: Estate planning for IRAs with a $5,000,000 exemption, the Pension Protection Act, the IRA Regulations, pre-retirement issues, required beginning date issues, the inherited IRA, the minimum distribution rules, spousal rollovers, QTIPing an IRA, charitable bequest planning, beneficiary designation planning, retirement plans payable to trusts, Roth IRA issues, distribution of employer securities, insurance strategies and new, innovative planning strategies. Please contact Emily Rosenberg at 920.593.1705 or emily.rosenberg@keeblerandassociates for more information. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

Bob Keebler teams up with Mike Jones to give LISI members the scoop on Roth Recharacterizations with Required Distributions. LISI wants to let you know about Bob's upcoming Two Day IRA Seminar for Lawyers, CPAs and Financial Advisors - ?What the Lawyer, CPA and Financial Advisor Need to Know About Sophisticated Planning and Drafting for IRA & Qualified Plan Distributions Including How to Plan with a $5,000,000 Exemption? The seminar provides extensive coverage regarding planning with retirement accounts including: Estate planning for IRAs with a $5,000,000 exemption, the Pension Protection Act, the IRA Regulations, pre-retirement issues, required beginning date issues, the inherited IRA, the minimum distribution rules, spousal rollovers, QTIPing an IRA, charitable bequest planning, beneficiary designation planning, retirement plans payable to trusts, Roth IRA issues, distribution of employer securities, insurance strategies and new, innovative planning strategies. Please contact Emily Rosenberg at 920.593.1705 or emily.rosenberg@keeblerandassociates for more information. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

David Laibson's Fathauer Lecture in Political Economy was presented on December 7, 2009. David Laibson is a Harvard College Professor and the Robert I. Goldman Professor of Economics at Harvard University. Laibson is also a member of the National Bureau of Economic Research, where he is Research Associate in the Asset Pricing, Economic Fluctuations, and Aging Working Groups. Laibson serves on numerous editorial boards, as well as the boards of the Health and Retirement Survey and the Pension Research Council. He is a recipient of a Marshall Scholarship and grants from the National Science Foundation, the MacArthur Foundation, the National Institute on Aging, the Sloan Foundation, the Social Security Administration, and the Financial Industry Regulatory Authority (FINRA). Laibson co-organizes the Russell Sage Foundation’s Summer School in Behavioral Economics. He has received the PBK Prize for Excellence in Teaching. Laibson’s research focuses on the topic of psychology and economics and his work is frequently discussed in The New York Times, The Wall Street Journal, The Financial Times, the Economist, Business Week, Forbes, Fortune, Money, Wired Magazine, the New Yorker, and on the PBS program Wealthtrack. In 2005, Fortune named Laibson one of ten people to watch. In 2008, Wired Magazine included Laibson on the “2008 Smart List: 15 People the Next President Should Listen To.” In 2006 Laibson served as an external reviewer for the Department of Labor regulations that implement the Pension Protection Act. Laibson holds degrees from Harvard University (BA in Economics, summa cum laude), the London School of Economic (MSc in Econometrics and Mathematical Economics), and the Massachusetts Institute of Technology (Ph.D. in Economics).

This episode is a re-release of the AICPA Tax Briefing for State Society Leaders conference call that took place January 12 - 13, 2009. Below, please find a summary of the major points covered in the call. FIN 48—There are two important FASB requirements for accounting for uncertain tax positions of non-public companies that your firm needs to do right now, and as the tax person in your firm or business, you’ll undoubtedly be involved. On October 15, 2008, FASB deferred the effective date of FIN 48 (Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes) for all non-public companies for one year, until 2009 for calendar-year companies. However, that means that in January of 2009, calendar-year private companies should complete a FIN 48 analysis of their year-beginning tax positions so that they can record the effect of the change in accounting method at the end of 2009. This analysis could be “backed into” later in the year, but as time passes it will be more difficult to recall all tax positions (not just those that are unlikely) for all types of taxes for all open years in all jurisdictions and what the level of certainty and values were under the law at the beginning of the year. So if a company has not already done this analysis and if it wants to report in accordance with GAAP, the earlier it starts now, the better. Another new FASB requirement relates to 2008 financials and any interim 2009 financial statements. A FASB Staff Position (FSP) was issued on December 30 that added reporting requirements for private companies that elect to defer the effective date for the adoption of FIN 48. Specifically, they must explicitly disclose that they are electing to defer the effective date and also disclose the company’s accounting policy for evaluating uncertain tax positions. This applies to 2008 financials and interim 2009 financials, until FIN 48 is adopted. The FSP doesn’t discuss specifics, but unless a company has something unusual, we hope that some standard language will suffice, such as “Management has elected to defer the application of FAS FIN 48, Accounting for Uncertain Tax Positions in accordance with FSP FIN 48-3. The Company will continue to follow FAS 5, Accounting for Contingencies, until it adopts FIN 48.” Additional information on FIN 48 for private companies is included in the February issue of The Tax Adviser magazine that most Tax Section members receive. Tax Practice Guides and Checklists—Tax section members receive an annual package of over 600 pages of engagement letters, organizers, checklists, and other practice guides, and they’re now posted online . These include return-specific checklists for preparing and reviewing tax returns. Some forms checklists come in simple and complex versions so that, for instance, you don’t have to use a complex individual return checklist for a child’s return. These practice guides are carefully prepared and reviewed by fellow practitioners for your use. They are up-to-date through the Emergency Economic Stabilization Act of 2008, and subsequent developments will be reported in your Tax Section E-Alerts. In prior years, we sent a CD-ROM version of the checklists, but to avoid delays in scribing and mailing the CDs and with most members now having broadband internet, this year we’re only distributing the checklists. You’ll have to log on and be recognized as a tax section member to access this premium web content, and if you’re not a member, you can join online at aicpa.org/tax or on the phone at 800/513-3037. Each document may be downloaded to your computer directly allowing you to use any or all of the Practice Guides and checklists at your convenience and without requiring you to be logged on to the AICPA web site. A “one click” option allows you to download the entire package in a few moments directly to your computer. Audio E-Alerts—Tax Section member receive bi-weekly emailed e-alerts that report current developments in tax law and practice. This emailed alert is necessarily brief and to the point, and we’re beginning expanded version in bi-weekly audio e-alerts that can be uploaded to your MP3 player or listened to online. Each alert will be approximately 15-20 minutes in length and can be accessed online. These audio alerts are available to AICPA members without charge, but they do not contain the links to the source documents that are included in the emailed version that goes to Tax Section members. These audio alerts may be of particular interest to younger staff and will help them become more knowledgeable about current tax developments. SSTS Exposure Draft—The AICPA Tax Division recently issued an Exposure Draft of revisions to the Statements on Standards for Tax Services (SSTSs). The draft addresses changes in federal and state tax laws affecting the provisions in SSTS No. 1, Tax Return Positions, and No. 8, Form and Content of Advice to Taxpayers, and also members’ requests for clarification. Corresponding revisions to the current SSTS Interpretations will be made at a later date. Revisions to SSTS No. 1 are proposed to clarify the need to satisfy both the AICPA standards and the standards of the applicable taxing authority. Revisions to SSTS No. 8 are proposed to address new requirements that apply when providing certain types of tax advice. In addition, the original SSTS Nos. 6 and 7 have been combined into the revised SSTS No. 6. The original SSTS No. 8 has been renumbered SSTS No. 7. Various revisions also have been made to the language of the original SSTSs. AICPA members are welcome to comment on the exposure draft, with comments due by May 15, 2009. Please send your comments to sstscomments@aicpa.org or to SSTS Comments, AICPA, 1455 Pennsylvania Avenue NW, Washington, DC 20004-1081. Section 6694 Penalties—The Emergency Economic Stabilization Act of 2008 lowered the reporting standard under section 6694 to “substantial authority” from “more likely than not” for undisclosed, non-tax shelter positions. This is the same standard that applies to taxpayers. The change is retroactive to the date when the higher standard was enacted, May 25, 2007. This is a great victory for CPAs that the AICPA had been fighting for since Congress raised the standard for preparers to a level higher than for taxpayers, creating potential conflicts of interest between CPAs and their clients. Section 7216 Final Regs—IRS regulations on the unauthorized disclosure of tax return information went into effect on January 1. Absent a specific, exception, Treas. Reg. section 301.7216 generally prohibits the disclosure or use of tax return information without the client’s explicit, written consent. Under section 7216, a tax return preparer is subject to a criminal penalty for “knowingly or recklessly” disclosing or using tax return information. Each violation of section 7216 could result in a fine of up to $1,000 or one year imprisonment, or both. AICPA members who are engaged in tax return preparation and tax planning services need to become familiar with Treas. Reg. section 301.7216 and Revenue Procedure 2008-35, the authoritative guidance with respect to a preparer’s disclosure or use of tax return information. In a practice guide for members, the Tax Section is providing several examples of consent forms which have been developed by CPA members for their discussions or consultations with individual clients. 1099B Forms Coming Two Weeks Later—The Emergency Economic Stabilization Act of 2008 extended the date by which brokers must furnish information forms to customers. This includes stock broker 1099-B forms and also other forms from brokers, including realtors. Beginning with statements furnished in 2009, brokers will avoid penalties if they furnish these forms on or before February 15 – as opposed to the old due date of January 31. This could further compress the return preparation season for practitioners. Form 1065 Extended Due Date—Last year, the Tax Division held discussions with IRS concerning the dilemma of the late receipt of Forms 1065, Schedule K-1 that has perplexed the clients of CPAs who prepare the Form 1040, 1065, 1120 and 1120S tax returns which include such K-1 information. On January 24, 2008, we recommended, as a short-term solution, that the Service open a regulation project to: (1) address the difficulties taxpayers face when receiving delayed Schedules K-1 and (2) move the extended due date for partnership returns from October 15 to September 15, thus providing a maximum extension of five months. On July 1, 2008, the IRS released proposed regulations which would, in fact, limit certain flow-through entities to a maximum 5-month extension. The Service has indicated that the proposed regulations won’t be finalized until they have had an opportunity to analyze any comments submitted. On September 24, 2008, the Tax Division submitted comments with regard to the impact on trusts. The AICPA generally supports limiting the extension of the due date for partnership returns to five months. However, our prior letter and comments did not consider the issue of the proper extended due date for fiduciary returns because we were primarily focusing on the filing problems created for individuals who are partners in partnerships. We believe that the extension period for fiduciary returns (i.e., Form 1041 for trusts and estates) should remain at six months, rather than being reduced to five months as set forth in the temporary regulations applicable to all returns which are due after January 1, 2009. The Division will be testifying at the IRS hearing on the proposed regulations on January 13, 2009. In addition, the Division is also considering suggesting possible legislative changes in this area taking into account our members’ attitudes as solicited in a survey earlier this year. Also, on October 29, 2008 representatives of the Partnership TRP met with the Joint Committee on Taxation a possible change to due dates and/or extended due dates of Forms 1065, 1040, 1120S and 1041 to relieve workload compression and to better manage the workflow of these returns. State Taxation of Nonresidents—The ACIPA has been closely monitoring a Congressional initiative that would affect the ability of states to tax nonresidents temporarily working within their jurisdiction. Currently the states that have an individual income tax have a wide variety of tipping points. Some do not impose taxes on nonresidents until they have worked as many as 30 days within the state; others seem to require only a day or two. This has resulted in much confusion and probably significant non compliance for businesses, such as many accounting firms that frequently have employees working in states where the employer does not have an office. A bi-partisan bill was introduced in the last congress that would have required all states to conform to a 60-day rule such that the non resident employee would not be subject to tax within the state until the employee completed more than 60 days of service within the state in a calendar year. Included in the bill was what we refer to as the “snap back” rule whereby, once the 60 days was exceed, the employer was responsible for withholding the non resident state taxes for all the days worked with the state, including the first 60 days. In response to pressure from state taxing authorities, in the final days of the 110th Congress the 60 day rule was lowered to 30 days while still preserving the Snap back” provision. We believe there is a strong possibility that the 111th Congress take up where they left off last session and pass the 30 day with snap back version. Although we would have preferred the 60 day rule or even the 30 day rule without the snap back, this measure would add a much needed level of certainty in the area of state taxation of non residents. Pension Legislation Changes—At the end of the year, Congress passed the “Worker, Retiree and Employer Recovery Act of 2008)” which liberalized the funding rules for single and multi-employer qualified retirement plans and the minimum required distribution rules (MRDs) for retirees who have reached age 70 ½. The bill also makes technical corrections to the “Pension Protection Act of 2006” (PPA ’06) Specifically, the bill would • Allow pension plans to smooth out unexpected asset losses over two years; • Provide a transition to the new funding rules; • Allow multiemployer plans to freeze their status based on the previous year’s funding level; • Allow pension plans that are less than 60 percent funded at the beginning of 2009 to look back to the previous plan year to ascertain their funding status; and • Suspend mandatory withdrawals from retirement plans or IRAs for individuals age 70 ½ or older during 2009. The Treasury Department and IRS plan to issue MRD relief for 2008 very soon. The changes were needed because of the confluence of PPA ’06 mandated minimum contribution increases with the current economic crisis. We are also considering advocating additional changes; we will survey members in business and industry to try to determine if they anticipate continuing funding difficulties. Obama Tax Agenda Although this is necessarily speculative, we tried to pull together some of the common denominators of what President Obama spoke about in his campaign and his economic advisors have been saying since the election. Following are our predications at this moment: • Estate tax – freeze 2009 – i.e. $3.5 mil exclusion and 45% marginal rate. AICPA is fighting for: o “portability” loosely defined as permitting a surviving spouse to “inherit” whatever portion of the exclusion was not consumed by the deceased spouse o “conformity” so that the same exclusion would apply for purposes of the gift tax and the generation skipping transfer tax • Marginal rates for individuals – no increase in 2009 and perhaps not for 2010 unless there is a significant recovery in the economy before then. o Some reduction in payroll taxes for lower and middle income individuals to be effective in 2009 as a stimulus to the economy o Once the economy has “sufficiently” recovered we are expecting the Administration to proposed increasing the rates on upper income individuals to those in place before the reductions of 2001 raising the top rate back to 39.6% • We expect a proposal to increase the rates for qualified dividends and long term capital gains to 20%. But this, too, may not be proposed until it appears we’re on the way to an economic recovery. • Individuals with IRAs may be able to avoid penalties if they withdraw, before age 59 ½ , some level of funds ($10,000 has been talked about) to tie them over the economic slump. • For businesses, the new president has supported a continuation of the bonus deprecation rules and the ability to currently expense as much as $250,000 of asset purchased and placed in service in 2009

Welcome to the inaugural podcast sponsored by Flaster/Greenberg PC, a law firm headquartered in Cherry Hill, New Jersey, with offices in Egg Harbor Township, Morristown, Trenton, and Vineland. We also have offices in Philadelphia, PA and Wilmington, DE. This podcast is co-sponsored by Isdaner & Co. LLC, a certified public accounting firm in Bala Cywyd, PA. In this podcast, we present a discussion about strategies for managing personal wealth through planned giving, with a review of the latest changes in tax laws regarding donations of property and uses of IRA and other pension assets in charitable giving. The program was recorded May 22, 2007 at the Pyramid Club in Philadelphia. Speakers (profiles are hyperlinked to the speakers' names) Ruth Tanur, CPA, of Isdaner & Co. LLC Michael P. Spiro, Esq., of Flaster/Greenberg PC Download the podcast here (76.9 mb stereo MP3 file, 00:56:03 duration). Produced by Professional Podcasts LLC, Cherry Hill, NJ. Keywords: Cherry Hill, Philadelphia, Isdaner, accounting, Flaster,Greenberg,Spiro,Tanur,NJ, podcast, lubetkin,pension,tax,charitable giving,wealth management,Pension Protection Act,S corporation,private foundation,donation,charitable remainder trust

The IRS has issued Notice 2007-7 that explains the distribution provisions in the Pension Protection Act of 2006.  In the podcast, we look at some of he provisions contained in this notice that would be of special interest to advisers of closely held businesses and their owners.The materials for the podcast can be downloaded from http://edzollars.com/2007-01-12_IRS_PPA_Notice.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .

This PodCast concerns IRS Notice 2007-7 that explains the distribution provisions in the Pension Protection Act of 2006. We focus on some of he provisions contained in this notice that would be of special interest to advisers of closely held businesses and their owners.The materials for the podcast can be downloaded from http://edzollars.com/2007-01-12_IRS_PPA_Notice.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast concerns IRS Notice 2007-7 that explains the distribution provisions in the Pension Protection Act of 2006. We focus on some of he provisions contained in this notice that would be of special interest to advisers of closely held businesses and their owners.The materials for the podcast can be downloaded from http://edzollars.com/2007-01-12_IRS_PPA_Notice.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast concerns IRS Notice 2007-7 that explains the distribution provisions in the Pension Protection Act of 2006. We focus on some of he provisions contained in this notice that would be of special interest to advisers of closely held businesses and their owners.The materials for the podcast can be downloaded from http://edzollars.com/2007-01-12_IRS_PPA_Notice.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This podcast reviews the requirements for qualified appraisals and why, just because an appraisal exists, that won't necessarily save the taxpayers' deduction unless have specifically contracted for a tax appraisal and are sure to have the proper parties sign off on their return.The documentation rules for charitable contributions can create situations where taxpayers lose the right to claim a deduction even though they made it and, by the time they get to Tax Court, can even show the value of what was contributed. This was a lesson learned by the taxpayers in Ney v. Commisssioner, TC Summary 2006-154.Be sure to check out the important LISI Charitable Planning Newsletters # 104 and 105 at http://www.leimbergservices.com on this topic. They discuss the changes made by the Pension Protection Act of 2006 to substantiation requirements for cash gifts.The materials for this week's podcast are located at http://edzollars.com/2006-09-23_Charity_Appraisals.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This podcast reviews the requirements for qualified appraisals and why, just because an appraisal exists, that won't necessarily save the taxpayers' deduction unless have specifically contracted for a tax appraisal and are sure to have the proper parties sign off on their return.The documentation rules for charitable contributions can create situations where taxpayers lose the right to claim a deduction even though they made it and, by the time they get to Tax Court, can even show the value of what was contributed. This was a lesson learned by the taxpayers in Ney v. Commisssioner, TC Summary 2006-154.Be sure to check out the important LISI Charitable Planning Newsletters # 104 and 105 at http://www.leimbergservices.com on this topic. They discuss the changes made by the Pension Protection Act of 2006 to substantiation requirements for cash gifts.The materials for this week's podcast are located at http://edzollars.com/2006-09-23_Charity_Appraisals.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast examines a provision buried in the Pension Protection Act of 2006 that involves "employer" owned life insurnace. The provision in question renders the death benefit taxable to the extent it is greater than the premiums paid unless the policy both falls into certain excepted categories and the policy owner takes specific steps before the policy is issued to assure that the insured both gets proper notice and gives a proper consent.The materials are found at http://edzollars.com/2006-08-12_Life_Insurance.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This week we look at a provision buried in the Pension Protection Act of 2006 that involves "employer" owned life insurnace.  The provision in question renders the death benefit taxable to the extent it is greater than the premiums paid unless the policy both falls into certain excepted categories and the policy owner takes specific steps before the policy is issued to assure that the insured both gets proper notice and gives a proper consent.The materials are found at http://edzollars.com/2006-08-12_Life_Insurance.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .

This PodCast examines a provision buried in the Pension Protection Act of 2006 that involves "employer" owned life insurnace. The provision in question renders the death benefit taxable to the extent it is greater than the premiums paid unless the policy both falls into certain excepted categories and the policy owner takes specific steps before the policy is issued to assure that the insured both gets proper notice and gives a proper consent.The materials are found at http://edzollars.com/2006-08-12_Life_Insurance.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast examines a provision buried in the Pension Protection Act of 2006 that involves "employer" owned life insurnace. The provision in question renders the death benefit taxable to the extent it is greater than the premiums paid unless the policy both falls into certain excepted categories and the policy owner takes specific steps before the policy is issued to assure that the insured both gets proper notice and gives a proper consent.The materials are found at http://edzollars.com/2006-08-12_Life_Insurance.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com