On September 28, the House Ways & Means Committee approved legislation, HR 5687, that expands health savings account (HSA) rules to include an increase in the out-of-pocket costs associated with the HSA’s accompanying high deductible health plans (HDHPs). Those limits currently are $7,500 for self-only coverage, $15,000 for family coverage, and $1,000 in catch-up contribution authority. Under current law, HSA contribution limits are much lower--$3,850 for self-only HSAs and $7,750 for HSA owners with family coverage.
NAIFA
Recent posts by NAIFA
2 min read
Ways & Means Approves Expanded HSA Bills
By NAIFA on 10/16/23 1:02 PM
Topics: Legislation & Regulations Health Savings Accounts
2 min read
IRS Announces Moratorium on New ERTC Claims, Enhanced Program Scrutiny
By NAIFA on 10/16/23 12:37 PM
On September 14, the Internal Revenue Service (IRS) announced it had stopped processing all new coronavirus-era Employee Retention Tax Credit (ERTC) claims, and that claims submitted prior to September 14 will be subject to enhanced examination and considerable delay before payment of those claims it determines to be valid. The IRS actions are in light of reports of rampant fraud among those seeking to claim the ERTC.
Topics: Legislation & Regulations IRS
1 min read
DOL Sends Final Worker Classification Rule to White House for Review
By NAIFA on 10/16/23 12:27 PM
On September 28, the Department of Labor’s (DOL’s) Wage and Hour Division (WHD) sent to the White House’s Office of Management and Budget (OMB) for pre-release review (and authorization to release) its final new rules on worker classification.
Topics: Legislation & Regulations DOL
4 min read
Pending Regulations Impact NAIFA
By NAIFA on 10/16/23 12:19 PM
There is a slew of pending regulations on such issues as the fiduciary rule, retirement savings, and health insurance nearing release. Below is a summary of some of the ones that will have the most impact.
Topics: Retirement Legislation & Regulations DOL
1 min read
House Budget Committee Offers Balanced Budget, Entitlement Reform
By NAIFA on 10/16/23 12:02 PM
On September 20, the House Budget Committee, by a party-line 20 to 14 vote, approved a fiscal year (FY) 2024 budget that balances the federal budget within ten years, and calls for a commission to deal with entitlements. It also provides for permanence and/or extension of the Tax Cuts and Jobs Act (TCJA) individual and estate tax rules. Generally, these TCJA tax cuts expire in 2026.
Topics: Taxes Congress
1 min read
ESG Rules Trigger Congressional, Judicial Attention
By NAIFA on 10/16/23 11:49 AM
A Texas judge has ruled against a challenge to Biden Administration environmental, social, and governance (ESG) rules that allow fiduciaries to consider ESG factors in selecting retirement plan investment choices. House action to roll back the rules is pending.
Topics: Retirement Planning Retirement Legislation & Regulations Investing
1 min read
SEC Issues Proposed Rule on RILA Implementation
By NAIFA on 10/16/23 11:38 AM
On September 29, the U.S. Securities and Exchange Commission issued a proposed rule to implement the Registration for Index-Linked Annuities (RILA) Act, which directed the SEC to devise a new form for annuity issuers to use when filing registered index-linked annuities (RILAs). That legislation was enacted in December 2022 as part of the Consolidated Appropriations Act, 2023 which also included the Secure 2.0 Act.
Topics: Life Insurance & Annuities Legislation & Regulations SEC
2 min read
Roth Rule Catch-Up Contribution Notice Resolves Some Effective Date Issues
By NAIFA on 9/15/23 2:08 PM
In Notice 2023-62, the IRS and Treasury clarified that many catch-up contributions for 2024-2025 will not have to be Roth contributions for taxpayers earning $145,00/year or more.
Topics: Retirement Legislation & Regulations Federal Advocacy IRS SECURE 2.0
2 min read
EBSA Sends New Fiduciary Proposal to White House for Review
By NAIFA on 9/15/23 2:06 PM
On September 8, the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) sent to the White House’s Office of Information and Regulatory Affairs (OIRA) a notice of proposed rulemaking (NPRM) on new fiduciary duty rules applicable to advisors on retirement savings. Details of what the agency is proposing are as yet unknown, but speculation suggests its focus is on insurance-related advice, and on rollovers from retirement plans to individual IRAs.
Topics: Retirement Legislation & Regulations Federal Advocacy DOL
3 min read
Congress Returns to a Brutal September
By NAIFA on 9/15/23 2:05 PM
Lawmakers returned to Washington after a six-week August recess with just two weeks in which to provide funding for the entirety of the discretionary spending available to the federal government. Other must-pass legislation, also due by October 1, further complicates September. And the politics are extremely difficult for all of this must-do legislation. A number of issues of concern to NAIFA could be caught up in what looks like will be a brutal month (or four).
Topics: Legislation & Regulations Federal Advocacy Congress SECURE 2.0
3 min read
NAIFA Submits Comments on Proposed STLD Health Insurance Regs
By NAIFA on 9/15/23 2:04 PM
On September 11, NAIFA submitted comments on the tri-agency (Departments of Health & Human Services (HHS), Labor (DOL) and Treasury) proposed regulations on short-term limited duration (STLD) health insurance, and on fixed payment (indemnity) health insurance.
Topics: Health Care Legislation & Regulations Federal Advocacy
2 min read
DOL Proposes New White-Collar Exemption Rule
By NAIFA on 9/15/23 2:03 PM
On August 30, the Department of Labor (DOL) released a new proposed regulation on the white-collar exception to the Fair Labor Standards Act’s (FLSA’s) overtime rules. Generally, DOL proposes that the salary threshold rise to $55,068/year (and suggests the number could go higher by the time the proposal is finalized), and that it be updated automatically every three years.
Topics: Legislation & Regulations Federal Advocacy DOL
2 min read
SCOTUS Receives Briefs on Constitutionality of Tax on Unrealized Income
By NAIFA on 9/15/23 2:02 PM
The U.S. Supreme Court (SCOTUS) has received scores of briefs on whether it is constitutionally permissible for the United States to tax unrealized income. The briefs are in connection with a case now pending before SCOTUS, Moore v United States, which raises the issue of whether unrealized income can be subject to current tax liability. The case has significant implications for cash value life insurance, and for long-held investments.
Topics: Taxes Federal Advocacy
2 min read
House Republicans Advance Anti-ESG Legislation
By NAIFA on 9/15/23 2:02 PM
Republicans on the House Financial Services Committee approved four anti- environmental/social/governance (ESG) bills this past July, and on September 5, GOP members of the House Education & the Workforce Committee introduced another four bills that would restrict the use of ESG factors in evaluating investments in a retirement savings plan.
Topics: Legislation & Regulations Federal Advocacy Congress
1 min read
NFIP Caught in Year-End Government Funding Controversy
By NAIFA on 9/15/23 2:01 PM
The National Flood Insurance Program (NFIP) must be reauthorized and funded before the October 1 start of the new fiscal year (FY).
If Congress does not reauthorize and fund the NFIP by October 1 (whether in a continuing resolution or in a FY 2024 appropriations bill), the agency would not be able to issue new flood insurance policies. Plus, funding would become even more of an issue than it already is. (FEMA, the Federal Emergency Management Agency, is already running low on funds with literally billions in claims from various natural disasters still outstanding.)
Topics: Federal Advocacy
1 min read
Treasury/IRS Propose Cryptocurrency Tax Reporting Rules
By NAIFA on 9/15/23 1:59 PM
On August 29, Treasury/the Internal Revenue Service (IRS) proposed rules expanding tax reporting of cryptocurrency transactions. Generally, the proposed rules would require cryptocurrency exchanges to disclose detailed information on their clients’ transactions starting in 2026.
Topics: Taxes IRS
2 min read
GOP Reacts to DOL Acting Secretary Status
By NAIFA on 9/15/23 1:59 PM
Legislation has been introduced in both the House and Senate to negate the Department of Labor (DOL) Acting Secretary Julie Su’s ability to lead the agency in the absence of the Senate confirming her nomination.
Topics: Federal Advocacy DOL
2 min read
Congress Tees Up September Appropriations Nightmare
By NAIFA on 8/14/23 3:57 PM
Congress left Washington on July 27 without enacting any fiscal year (FY) 2024 appropriations bills. Lawmakers did make some progress in both the House and Senate, but face having to do all 12 of the annual discretionary spending bills in less than three weeks in September. Expect deep cuts to the budgets of all the agencies, except the Veterans Administration (VA) and Defense, and potentially new taxes as well.
Topics: Legislation & Regulations Congress
1 min read
EBSA Head Predicts Changes to Fiduciary Rule
By NAIFA on 8/14/23 3:52 PM
Employee Benefits Security Administration (EBSA) head Lisa Gomez is predicting changes to the Department of Labor’s (DOL’s) fiduciary rule due to “changes in the marketplace since 1975.” She noted, though, that EBSA is also considering the litigation that has overruled previous attempts by EBSA to change the fiduciary rule, especially in connection with advice on rollovers.
Topics: Legislation & Regulations Standard of Care & Consumer Protection DOL Fiduciary
2 min read
NCOIL Supports Resolution Opposing Fiduciary Rule Change
By NAIFA on 8/14/23 3:43 PM
On July 21, the National Conference of Insurance Legislators (NCOIL) adopted a NAIFA-backed resolution to oppose any new fiduciary rule from the U.S. Department of Labor (DOL). The decision came in part as a result of NAIFA testimony highlighting why no change to current fiduciary rules is necessary.