Disability Insurance Planning Issues & Solutions
DISABILITY INSURANCE LAYERING DESIGN Your income allows for food, shelter, utilities, transportation, education, healthcare as well as the cost to maintain your lifestyle. Why don’t we all have significant disability insurance coverage? Disability insurance comes in all forms and sizes and having a “portfolio” of policies in many cases, is the preferred and most cost-efficient method. […]Read More
IRS Guidance on Conversions of Qualified Plan Accounts to Designated Roth Accounts
In the American Taxpayer Relief Act of 2012 ("ATRA"), Congress expanded the ability of participants in tax-qualified plans, tax-sheltered annuities, and governmental deferred compensation plans to convert amounts
Reflecting the changes occurring in our current economic times
To avoid the nondiscrimination testing applicable to 401(k) plans and possible reductions of the amounts that a highly compensated employee ("HCE") could defer for a plan year, employers may structure 401(k) plans as "safe harbor plans.
Court Rules That Section 419A(f)(6) Plan Sponsor Made Taxable Distribution of Life Insurance Policies
The Second Circuit upheld a Tax Court decision that the insured taxpayers, a husband and wife, received a taxable distribution of life insurance policies from a Section 419A multi-employer welfare benefit plan.
IRS Advice Suggests Caution in Planning with Self-Canceling Installment Notes (SCINs)
A SCIN is a promissory note that includes a self-cancelation feature relieving the borrower of any future payments if the seller dies during the note term.
When Term Life Policy Proceeds Are Community Property
The California appellate court held that the characterization of term life insurance policy death proceeds as community or separate property depends, not only on who paid the final premium (i.e., was it paid with separate or community funds), but also on other factors such as (1) the insurability of the insured and (2) whether the amount of the final premium payment is capped or otherwise discounted against the current market cost of comparable coverage.
IRS 2014 Inflation Adjustments
An update to the IRS 2014 Inflation Adjustments for Estate Planning Purposes