Publisher's Synopsis
With thousands of easy-to-use Q&As that cover the most critical topics, Tax Facts helps advisers of all kinds understand the tax implications of the recommendations that they make for their clients. Insurance and employee benefits are complicated tools that each carry their own set of tax issues, and advisers cannot possibly make the thorough and complete assessments that clients depend on without understanding this ever-changing area.
This two-volume edition features:
- Thousands easy-to-read Q&As that comprehensively cover all aspects of insurance and employee benefits tax issues
- Practical advice for any professional, including in-house HR professionals, insurance producers and third-party advisers
- Detailed explanations of the various types of insurance products and employee benefits that are most commonly used by individuals and businesses
- Practice Points give concise advice on how to handle real-world issues
- Having the right tax information helps avoid problems before they become costly mistakes, as well as correct problems when they do occur
New in the 2024 Edition:
- SECURE Act 2.0 changes and proposed regulations, including:
- new rules allowing plan participants to take emergency distributions to cover immediate financial hardships without penalty, including qualified natural disasters
- what small business clients should know about the student loan match option
- how plans may implement a "free-look period" of up to 90 days, during which the taxpayer can rescind the purchase of a qualified longevity annuity contract without penalty
- when plan fiduciaries are required to collect overpayments from participants or make corrective contributions for overpayments not collected from plan participants
- how sole proprietors and owners of single member LLCs can make elective deferrals to their solo 401(k) plans up until their tax filing deadline
- the rules that allows the plan to designate any named fiduciary, other than the participating employer, as the fiduciary responsible for contribution collections
- when SIMPLE plan sponsors may allow employees to elect to treat employer contributions to SIMPLE accounts as Roth contributions
- penalties for missed RMDs and how designated beneficiaries are required to take annual RMDs throughout the ten-year distribution period
- when a qualified charity will now count as a designated beneficiary of special needs trusts so that the charity can take advantage of the stretch distributions
- A new section on retirement planning, including:
- Roth IRA funding with after-tax dollars to generate tax-free income later in life and how a taxpayer's Roth IRA savings can be impacted by divorce, and how to execute a non-taxable Roth conversion
- what surviving spouses who inherit IRAs should know when deciding how to treat the inherited account
- what taxpayers should consider when deciding whether to execute a "reverse" rollover from an IRA into a 401(k) and an understanding of the "once per year" IRA rollover rule
- how the substantially equal periodic payment exception to the early withdrawal rule help taxpayers who choose to retire early starting
- the types of estate planning strategies that individuals can use to replace the "stretch" IRA
- charitable remainder trust options
- purchasing life insurance to pre-fund beneficiary's tax liability
- The Department of Labor's plans to revise its Voluntary Fiduciary Correction Program and prohibited transaction exemption 2002-51
- New IRS proposed regulations to clarify the permitted uses of forfeitures in defined contribution plans
- Update on the IRS's recently released Notice 2022-41 to change the rules governing mid-year election changes and cafeteria plans in light of the final regulations that fix the so-called "family glitch" under the ACA
- Update on the DOL's recently released bulletin clarifying its position on employer obligations when determining whether a remote employee is eligible for FMLA leave
Topics Covered:
- Annuities and life insurance products
- ERISA regulations for employee benefit plans
- Health and Long-term care insurance
- Disclosure and record-keeping requirements
- Qualified and nonqualified compensation plans
- Defined contribution and defined benefit deferred compensation plans
- Funded and unfunded plans
- PBGC requirements
- Estate, gift tax consequences
