INSURANCE AND FINANCIAL FORUM

Transcription

1 FOUNDED IN 1927 AS SAN ANTONIO ASSOCIATION OF LIFE UNDERWRITERS (SAALU) INSURANCE AND FINANCIAL FORUM IRS RELEASES FINAL RULES ON TAX- SHELTERED ANNUITY CONTRACTS Reprinted from The IRS has issued final regulations that provide guidance for section 403(b) contracts of tax-exempt organizations and public schools (i.e., so-called tax-sheltered annuity contracts, custodial arrangements and certain retirement income arrangements for employees of churches). These long-awaited regulations finalize the proposed regulations issued in They reflect updates for changes in the Internal Revenue Code that have occurred over the past 40 years. These updates include explanations of (1) the requirement that a 403(b) arrangement generally be embodied in a written plan, (2) changes in the law reflecting maximum contribution limits, rollovers, plan distributions and contract exchanges and transfers, (3) nondiscrimination requirements that apply to such contracts, including the so-called universal availability requirement that applies to deferrals under such plans, (4) the rules determining how to establish who is the employer for purposes of nondiscrimination testing, and (5) how section 403 (b) plans can be terminated. The regulations are generally effective starting in However, many of the requirements embodied in the regulations were effective earlier by statute. The regulations include a number of AUGUST 2007 VOLUME 4, ISSUE 1 FINAL IRS RULES ON TAX- SHELTERED ANNUITIES CONTACT INFORMATION 2 MEET THE NEW BOARD 2 MESSAGE FROM THE PRESIDENT COMMITTEES 4 MEMBERSHIP UPDATE 4 UPCOMING PROGRAMS 4 PROGRAMS IN A BOX 4 POLITICAL ACTION COMMITTEE (PAC) TAIFA Virtual University STATE FARM ENCOURAGES MEMBERSHIP SPONSORS 8 SCHEDULE OF EVENTS 9 CALENDAR (Continued on page 5)

2 PAGE 2 President OFFICERS President-Elect Secretary Treasurer Jason Talley, CSA, LUTCF (830) John Ward, CLU, ChFC, FLMI (210) Robert Kinnally, CLTC, IAR (210) Hannah Jacoby (210) Immediate Mary Rodriguez, RHU, LUTCF Past President (210) National Tobin Hoffman, LUTCF, CFP Committee Person (830) Bruce Wallace (210) Sylvia Villarreal (210) Joe Skarda (210) Paul Cataldo (210) EXECUTIVE DIRECTOR VOLUME 4, ISSUE 1 DIRECTORS Gold Star Professional Offices, LLC Lynn Getz, FLMI, ACS, AIAA (210) If you are interested in advertising in our newsletter, please contact Lynn at NAIFA - San Antonio 7800 IH10 West, Suite 130 San Antonio, TX Phone: Fax: info@naifasanantonio.org Important Numbers to Remember NAIFA - San Antonio NAIFA Member Support TAIFA TDI MDRT Meet The New NAIFA-San Antonio Board From left to right: National Committee Person, Tobin Hoffman; Director, Bruce Wallace; President Elect, John Ward; President, Jason Talley; Immediate Past- President, Mary Rodriguez; Treasurer, Hannah Jacoby; Directors, Sylvia Villarreal, Paul Cataldo, and Joe Skarda; Secretary, Robert Kinnally

3 San Antonio PAGE 3 MESSAGE FROM YOUR PRESIDENT, JASON TALLEY First I would like to start out by saying thank you to all of the previous board members that have served the association so well in past years. This has established a strong foundation that we can build on in the association year. I am excited about the new year and look forward to working on your behalf to bring new and exciting changes that will benefit you as a member. The new board wants to bring programs and benefits to you that will help grow your business or motivate you to want to grow your business. If you have exciting ideas or would like to see us offer something that we have not done in the past, please let me know. I would like to see these goals accomplished during my tenure: Offer high quality speakers with programs that will benefit you and your business. Improve communication about upcoming events and important issues. Provide free CE during as many events as possible. Work with the local media to get more attention for the association and offer our expertise when they need to talk to someone regarding our industry. We belong to this association for a lot of reasons, but the most important reason is industry insurance. NAIFA staff in Austin and Washington D.C. are watching our back when many of us are clueless about potential threats. With state and federal spending out of control, the government will continue to look at ways to get new money from the taxation of cash values in life insurance. I am certain that the tax treatment of annuities and nationalized health care will show up on the government s agenda as well. We don t want to wake up tomorrow and regret that we didn t do enough to protect our industry. Tell a friend that if they are not a member of NAIFA San Antonio, they are not taking advantage of industry insurance and we need them on the team. In September, myself and others will be attending the national convention in Washington D.C. We are attending on your behalf to listen to and illustrate to our political leaders the potential affects of decisions made in Washington D.C. to our industry. We look forward to providing you a report at our next meeting. Your President, Jason B. Talley, CSA, LUTCF

4 PAGE Committees: Membership: Chairperson: Bruce Wallace (210) Professional Development: Chairperson: Robert Kinnally (210) Co-Chair: Sylvia Villarreal (210) Public Relations: Chairperson: Paul Cataldo (210) Government Affairs: Chairperson: Mary Rodriguez (210) MEMBERSHIP UPDATE: Welcome New Members: Javier Barron Sammy Carr Dale Dowlearn Serene Tobeh Paul Jacobs VOLUME 4, ISSUE 1 We re looking for renewals from: Ted Royston Teresa Villanueva UPCOMING PROGRAMS September 13 luncheon at Oak Hills Country Club on Fredericksburg Road Program Prospecting, Referral Generation & Personal Marketing - presented by Paul McCord, Bestselling Author, Speaker, Trainer & Consultant. November 8 luncheon at Oak Hills Country Club Program 2 1-hour CE classes by Stu Tugman Advanced Marketing If you are interested in participating in any of these committees, please contact the committee chairperson for more information and meeting dates and times. We encourage all members to share their ideas and suggestions please contact the appropriate committee. Programs In A Box Library #11 Improve Your Bottom Line with LIFE s Products #12 Asset Allocation: Putting Your Client s Eggs in the Right Baskets #13 Successful Life Insurance Selling in a Multiline Agency #14 Maximizing Health Savings Accounts Opportunities #15 Values & Ethics: Being Compliant and Profitable #16 Protecting Your Client s Business #17 Survive and Thrive in Your First Three Years #18 Marketing Consumer Driven Health Plans #19 Making the Suitable Sale: NASD Requirements for Variable Annuities #20 Back to Basics: Qualifying the Life Insurance Need These programs are available for viewing at Gold Star Offices Call for more information NAIFA 2007 CONVENTION AND CAREER CONFERENCE September 8-12, 2007 Washington, DC Registration is Open! Register Early and Save $80! Washington, D.C. is the place to be this September as NAIFA presents A Capital Idea: The 2007 NAIFA Convention and Career Conference at the Hilton Washington. Events like NAIFA s Day on the Hill; top speakers like Keith Harrell, a.k.a. Dr. Attitude; educational workshops; networking opportunities and many issues surrounding association governance will make this a vital event for NAIFA members to attend. Find out more about the 2007 NAIFA Convention and Career Conference at

5 San Antonio PAGE 5 (Continued from page 1) special transition rules to deal with these various effective dates, and some transition rules may require prompt action. Note that ERISA exempts a limited category of Section 403(b) arrangements from Title I of ERISA (but not from Internal Revenue Code requirements). The major ERISA exemption applies to arrangements that contain only salary deferrals and that are not established or maintained by the employer. In light of the need for employers to review 403(b) arrangements to ensure that they comply with IRS requirements (in particular, the written plan requirement), some otherwise exempt employers expressed concern that their arrangements may cease to be exempt. The Preamble to the final regulations states that the DOL still believes that compliance would not in all circumstances deny otherwise eligible employers of the DOL exemption, but cautions that each arrangement must be analyzed on a case-by-case basis. The Preamble does state, however, that the DOL will be issuing a Field Assistance Bulletin to provide some additional guidance on the interaction of its requirements and the requirements of the final IRS regulations. These regulations can be accessed via: Political Action Committee (PAC or Texas AIFA PAC) The PAC contributes to candidates who are responsive to the needs of those who buy, sell, and own insurance and financial products. One-half of all money received by the PAC is sent to NAIFAPAC for distribution to candidates on the national level. Benefits of PAC Membership Actively participate in choosing leaders for our country and state Support candidates who address the interests of business and good public policy in both Austin and Washington, D.C. Provide insight into legislative issues that impact insurance and financial advisors Levels of PAC Contribution $5,000+/year Capitol $ $4,999/year Emissary $1,000 - $2,499/year Diplomat $500 - $999/year Envoy $300 - $499/year Statesman $200 - $299/year Ambassador $100 - $199/year Century Club

6 PAGE 6 VOLUME 4, ISSUE 1

7 SAN ANTONIO PAGE 7 Hats off to Mr. Hargis for supporting our organization as one of the premier insurance associations to belong to...

8 PAGE 8 NEWSLETTER VOLUME 4, ISSUE TITLE 1 MEMBER BENEFITS AON E&O coverage for individual Advisors and Agencies Advisors Assistant A software specifically written for registered reps, financial planners, insurance professionals and agencies. Financial Visions provides the most comprehensive, affordable website service available to the insurance and financial services industry. Horsesmouth a daily, online ervice that helps financial advisors succeed by getting more clients and growing their business MOUTH

9 San Antonio PAGE 9 NAIFA - SAN ANTONIO SPONSORS Phone: Phone:

10 SCHEDULE OF EVENTS FOUNDED IN 1927 AS SAN ANTONIO ASSOCIATION OF LIFE UNDERWRITERS (SAALU) Newsletter Editor: Lynn Getz Gold Star Professional Offices 7800 IH10 West, Suite 130 San Antonio, TX Phone: (210) Fax: (210) August 9, 7:30am Membership Breakfast at Oak Hills Country Club Month of September Life Insurance Awareness Month September 13, 11:30 Membership Luncheon at Oak Hills Country Club Helpful Websites: Association of Health Insurance Advisors Life and Health Insurance Foundation for Education Million Dollar Round Table Texas Department of Insurance V ISIT US ON THE WEB! W WW.NAIFASANA NTONIO. ORG OUR ORGANIZATION IS A FORUM OF INSURANCE AND FINANCIAL ADVISORS DEDICATED TO ASSISTING THE CONSUMER BY DEVELOPING THE SKILLS, TOOLS, AND KNOWLEDGE OF ITS MEMBERS. NAIFA-SAN ANTONIO Labor Day-September 3 LIAM September Virtual Offices plans begin at $75/mo. Mail-only Service $25/mo. Office / Conference Room during normal business hours $15/hr. Call or visit our website for more information AUGUST 2007 Sun Mon Tue Wed Thu Fri Sat SEPTEMBER 2007 Sun Mon Tue Wed Thu Fri Sat Breakfast Meeting Labor Day Luncheon Mtg /