Knowledge and Insights

IRC Section 7702 sets forth tests to define whether a life insurance contract may be treated as a life insurance contract for federal tax purposes. Implemented in 1984, the tests were enacted to limit the investment orientation of a life insurance policy. A life insurance contract can satisfy Section 7702 either by the Guideline Premium Test (GPT) or the Cash Value Accumulation Test (CVAT). Any policy that does not meet one of the two actuarial tests under Section 7702 (GPT/CVAT) will lose the favorable tax treatment of a life insurance policy. Learn more about what's changing and the impact of these changes.

During an economic crisis like the COVID-19 pandemic, many people had to put their retirement plans on hold, or even borrow from retirement accounts, in order to afford household bills.

Retirement plans are a core component of employees’ compensation and a key differentiator for employers. 

Given their importance, it’s essential that laws and regulations governing them keep up with the evolving challenges workers face. 

Work-life balance took on a whole new meaning for employees, and particularly working parents, over the past year as students learned from home while many of their parents worked from home throughout the pandemic.

Many people who have had their income adjusted may be panicking and looking for other sources of cash to pay the bills.

More than one income stream can help safeguard your well-thought-out early retirement strategy.

One of the financial consequences of COVID-19 was that people’s retirement plans were interrupted in various ways.

Women continue to be the primary caregivers in most families with children, but they are also likely to be important breadwinners for their families. In 2017, the latest year with available data, 41 percent of mothers¹ were the sole or primary breadwinners for their families, earning at least half of their total household income.

Many people who have been successful in saving for retirement have established a large enough nest egg to be able to create a legacy for their children, grandchildren and favorite charities; leaving them to wonder how to best leverage their qualified or tax-advantaged retirement plans. A common concern is whether financially successful retirees should make their children the beneficiaries of their IRA, leaving a likely income tax burden.

The Alliance for Lifetime Income, a non-profit consumer education organization, has published a new economic report that puts a spotlight on the growth of retirees in America.

The report also focuses attention on the increasing number of Americans seeking early retirement. While 65 has long been considered the traditional age for retirement, many Americans begin retiring sooner.

A Roth IRA can provide a way to grow tax-free retirement income. In order for a distribution of earnings from a Roth IRA to be a tax-free distribution, it may not occur until five years from the first contribution to a Roth IRA and you are at least 59½ or you are disabled, you meet the requirements for the purchase of a first home (up to a $10,000 maximum lifetime limit), or die. Unlike Traditional IRAs, Roth IRAs are funded with after-tax contributions.

It’s no secret that the world of annuities includes a complex array of terms. Understanding their meaning has been a challenge both to financial professionals and the consumers they’re trying to help. 

No two people heading into retirement have the same set of needs, preferences, or goals. That’s why there are different types of annuities from which you can choose. Adding an annuity to your overall retirement portfolio can provide you with several valuable benefits, including protected lifetime income. 

A new glossary of plain-English definitions and descriptions about annuities aims to make annuities and their benefits more easily understood, transparent and intuitive.

The most tumultuous year in recent memory—2020—may have come to an end, but we still have to file taxes for it. Before you begin accounting for last year's ups and downs, it's important to understand how the impacts of 2020 may affect your tax return in order to maximize your potential refund and prepare for any tax liabilities. From unemployment claims to new tax credits, learn the answers to five important questions many taxpayers are asking this year.

IRC Section 7702 sets forth tests to define whether a life insurance contract may be treated as a life insurance contract for federal tax purposes. Implemented in 1984, the tests were enacted to limit the investment orientation of a life insurance policy. A life insurance contract can satisfy Section 7702 either by the Guideline Premium Test (GPT) or the Cash Value Accumulation Test (CVAT). Any policy that does not meet one of the two actuarial tests under Section 7702 (GPT/CVAT) will lose the favorable tax treatment of a life insurance policy. Learn more about what's changing and the impact of these changes.

Small saving moves now can significantly impact early retirement outcomes.

A large influx of funds—an annual bonus, inheritance or capital gains from a property sale—can move the early retirement savings needle, but it’s everyday savings habits that can have the biggest impact. That’s because consistent small savings and debt repayment actions often create forward-moving momentum while building net worth over time.

Annuities are flexible products and, depending on the type, can meet needs for protected lifetime income, growth and downside protection.

Managing your nest egg isn’t one distinctive event – it’s an ongoing process that needs to reflect life’s changes throughout retirement.

One of the most common fears people share when considering retirement is the very real possibility of outliving the money they’ve worked so hard to save.

Key points to discuss with your financial professional about protecting your retirement income

The first step in developing a successful income plan for retirement is understanding your options. Here are nine points you should discuss with your financial professional to make sure you’re on track for the retirement you want.

Thinking about retirement income can be a challenge: You don’t want to use your resources too  quickly and run out of money, but you also don’t want to scrimp and save and reduce your lifestyle if it’s not necessary. So how do you find the balance? Begin by gathering a little bit of information.

Last year, most of us started with the same basic financial goals that are common in every new year: build an emergency fund, pay off debt, continue contributing to a retirement fund and maybe increase income. Nobody realized that 2020, for many of us, might be the “rainy day” for which we’d planned for so long.

Check off the Basics is a simple retirement planning approach that focuses on covering the various essential expenses people often need to cover in retirement, including things like a mortgage, utilities, groceries and transportation. And you decide what’s essential. You might not have a mortgage in retirement, for example, but you might have rent, condominium fees or home maintenance costs. 

Good-bye nine-to-five, hello golden years.

It’s never too soon to start saving for retirement but if you want to retire early, you’ll likely have to do some extra planning. That’s because traditional retirement planning advice—namely to save an annual 10 percent of income—may not be enough to fund a longer post-career plan, particularly if a pricey hobby or extensive travel is on the agenda.