The Internal Revenue Service (IRS) has released guidance (FS 2026-01) on the new deduction for qualified overtime (OT) pay. The guidance is in the form of frequently-asked questions (FAQs).

On Jan. 5, the Department of Labor’s (DOL’s) Wage and Hour Division (WHD) issued opinion letters covering specific overtime, worker classification, and Family and Medical Leave Act (FMLA) issues. The agency said the opinion letters, which apply only to the taxpayer requesting them, are designed “to promote clarity, consistency, and transparency in the application of federal labor standards under the Fair Labor Standards Act and Family and Medical Leave Act. The opinion letters provide official written interpretations from the division that address real-world questions and explain how laws apply to specific factual circumstances presented by individuals or organizations that may also have a broader interest to those impacted by the issue presented.”

Last month the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) proposed new regulations governing pharmacy benefit managers (PBMs) to provide more transparency to group health plans. The regulation, which applies to PBM services to self-funded ERISA group health plans, derives from ERISA 408(b) welfare benefit plan authority.

NAIFA continued its fight to reduce red tape in Washington impacting small businesses by partnering with other trades associations to send a letter to U.S. House Majority Leader Steve Scalise (R-LA) urging Congress to pass legislation to strengthen the Regulatory Flexibility Act (RFA) to reduce the impact of burdensome regulations on small businesses.

On January 5, the 119^th Congress began what looks to be a contentious second session ahead of the November mid-term elections. Lawmakers face a swath of deadline-driven controversial must-do issues, including the need to fund most of the government for the balance of fiscal year (FY) 2026.

On January 8, with 17 Republicans joining all Democrats, the House passed a bill, H.R.1834, that would reinstate the now-expired enhanced Affordable Care Act (ACA) health insurance premium tax credits (PTCs) that were at the heart of the October-November government shutdown. The vote was 230 to 196.

On December 17, the House of Representatives passed a bill, H.R.6703, that would make it easier and/or less expensive for individuals to buy health insurance and/or for employers to offer health insurance to their workers. However, the bill did not include an extension of the now-expired enhanced Affordable Care Act (ACA) health insurance premium tax credits (PTCs). The vote was 216 to 211.

Rep. Richard Neal (D-MA), ranking member on the House Ways & Means Committee, has reintroduced his automatic IRA legislation. The bill would require employers to enroll their workers (subject to a worker opt-out right) into workers’ individual IRAs.

On January 7, the House Education and the Workforce’s Subcommittee on Health, Employment, Labor and Pensions held a hearing on the role of lifetime income strategies, including annuities, on retirement savings in the current environment of rapidly-decreasing traditional pension plans.

On December 22, the Internal Revenue Service (IRS) issued Fact Sheet (FS) 2025-10, guidance on the rules governing Affordable Care Act (ACA) health insurance premium tax credits (PTCs) now that the enhancements to the PTCs enacted in 2020 have expired.

The co-chairs and members of the Congressional Bipartisan Fiscal Forum (BFF) have introduced a resolution calling on Congress to enact legislation to reduce the federal deficit to three percent of gross domestic product (GDP). A deficit that amounts to about three percent of GDP would be about half of its current (six percent of GDP) level.

In Notice 2026-06, the IRS and Treasury extended for one year the transition relief for employers now obligated to comply with employment tax and reporting obligations related to federal and state paid family and medical leave programs. This means the IRS will treat 2026 as a continued transition period with respect to medical leave benefits paid by a state that are attributable to employer contributions.

The Securities and Exchange Commission issued a bulletin this week (Updated Investor Bulletin: An Introduction to ABLE Accounts | Investor.gov) providing information on ABLE accounts including the changes made by H.R. 1. An Achieving a Better Life Experience (ABLE) account provides a tax-advantaged method to save for qualified disability expenses. Contributions are not tax deductible for federal income tax purposes, but investments can grow tax free and remain so when withdrawn and used for qualified disability expenses. Qualified disability expenses are expenses used to maintain or improve the account owner’s “health, independence, or quality of life.” Qualified disability expenses are broadly defined and may include expenses related to education, food, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management, administrative services and other expenses.

On December 31 the Internal Revenue Service (IRS) and Treasury released guidance on the new law allowing an above-the-line deduction for interest paid on loans to buy new American-made cars. The guidance makes clear that the deduction is not available for cars used for business.

The U.S. Department of Labor (DOL) has advanced a proposed rule to update its standard for classifying independent contractors under the Fair Labor Standards Act, signaling a potential shift under the Trump administration. While details of the proposal have not yet been released, the move raises the possibility that DOL may return to the “economic reality” test finalized near the end of President Trump’s first term. That approach emphasized two core factors—worker control and opportunity for profit or loss—while considering additional, less-weighted factors such as skill level, permanence of the relationship, and integration into production.

Lawmakers from both parties in both the House and the Senate and the Administration have begun work on a health package for Congress to consider now that the federal government has reopened. At the heart of these efforts are negotiations on whether and if so, how to extend expiring Affordable Care Act (ACA) enhanced premium tax credits (PTCs).

The Department of Labor (DOL) has dropped its appeal of the court decision staying implementation of the agency’s fiduciary rule. This is a clear and important win for NAIFA. NAIFA along with four of its Texas chapters, the American Council of Life Insurance, and several other trade associations are plaintiffs in the lawsuit.

On December 11, the House passed H.R. 3383, The INVEST Act, a bipartisan bill to expand investment options, empower entrepreneurs and small businesses, and provide Americans with the opportunity to more freely invest.

On December 2, the Treasury Department and the Internal Revenue Service (IRS) released initial guidance, Notice 2025-68, on new child savings accounts (Trump accounts, also called 530A accounts).

On November 25, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule for Calendar Year (CY) 2027 that would make significant changes to the marketing rules governing advisors on Medicare coverage. The changes would rescind some of the onerous Biden-era regulations that made working in the Medicare space more difficult. The proposal came after a CMS-NAIFA meeting to outline the value professional advisors provide to those making Medicare purchasing decisions.