Insurable Interest Canadian Insurance Blog

What You Need to Know The age for required minimum distributions to commence remains at 73 for 2024. Planning should include strategy for this tax year and for future years as applicable. In some cases it might pay to transfer assets from other plans such as old 401(k)s or individual retirement accounts. Many advisors are already in the midst of planning for clients for 2024 and in some cases beyond. A key part of planning is required minimum distributions for both 2024 and years ahead. Here are some issues to consider for clients who are affected by RMDs. RMD-Related Changes Under Secure 2.0 There are three significant changes arising from the Setting Every Community Up for Retirement Enhancement (Secure) 2.0 Act that could influence clients’ RMD planning for 2024 and beyond. Maximum amounts for qualified charitable distributions will be indexed to inflation beginning in 2024. Those who are at least age 70.5, can now take up to $105,000 in these distributions in 2024, up from the prior limit of $100,000. Surviving spouses are now allowed to calculate RMDs on their late spouse’s accounts using the deceased spouse’s age and the more favorable Uniform Lifetime Table. RMDs are no longer required...

What You Need to Know Employee clients can add to retirement accounts. They may be able to add to health accounts. Business owners have a third, great option. Do you ever have a déjà vu feeling? Like you’ve done this very thing before? For me, it happens every year when I prepare my taxes. I start going through everything and determine what I owe the federal government in taxes. As I complete this process, I think to myself, are there strategies that would help me maximize my tax efficiency? But what can I do now? Once the calendar year turns over, there is very little clients can do to increase their deductions and lower their tax bills. They can contribute 2023 payroll income to a SIMPLE or 401(k). Still, that option is based on 2023 payroll taxes and is primarily gone after the end of January. So, what options are there? There are a few, and they are limited. Of course, as always: You should understand all of the options, and you should consult with your own compliance advisors about whether and how to talk about the options with clients. 1. Traditional IRAs If a client hasn’t reached the maximum...

Members of the House Education and the Workforce Committee voted this week to advance their version of a bill that seeks to invalidate the independent contractor classification and reporting rules recently adopted by the Biden Labor Department. As detailed on Congress.gov, the Republican-controlled committee voted 21 to 13 to advance House Joint Resolution 116 to the full House. A similar bill remains in committee in the Senate, congressional records show. According to the House and Senate bills’ backers, the legislation is intended entirely invalidate the rulemaking under chapter 8 of title 5 of the United States Code, which grants Congress the authority to review and potentially block agency rulemaking. Supporting lawmakers say the rules are arbitrary and capricious under the Administrative Procedure Act and that they also violate the Regulatory Flexibility Act. Similar arguments have also been raised in litigation filed by a variety of industry groups representing trucking companies, retailers, chambers of commerce and other interested parties — including trade groups in the financial services industry, where advisors commonly work as independent contractors.

6. What is your favorite port? Everyone who cruises has stories about great places they have visited. They often want to visit again and again. Their answer can give clues if they are beach people or if culture and history are their interests. 7. How is the food on board? This will get people talking. Meals in the main dining room, buffet and room service are generally included in your cruise fare. Most ships have specialty restaurants offering more upscale options, with a small surcharge. Veteran cruisers will tell you which cruise lines have better food or how the selections have changed over the years. 8. What is your favorite ship (or cruise line)? The cruise line they chose is not necessarily the one they most recently sailed. It often comes down to getting a good deal. Their favorite cruise line or ship might be a memory from the past. Many Cunard passengers speak fondly of the Queen Elizabeth 2, better known as the QE2. It left service in 2008. 9. Have you considered becoming a shareholder in the parent company? This might sound like an odd question to ask, almost pushing business into the conversation. Many of the cruise...