SPACs -- or special purpose acquisition companies -- have risen in popularity, and many celebrities have gotten involved with these entities. SPACs can pose significant risk for investors, because the ultimate performance of a SPAC is difficult to forecast.
Registered investment advisers should be aware of their obligations under the Department of Labor's new fiduciary exemption rule, which has a safe harbor provision expiring Dec. 20. One key area of the new rule relates to advice on rollovers. (PFP/PFS members -- guide to investment advisory business models)
The Labor Department has issued guidance related to its fiduciary rule, including information to help investors pick advisers and to help advisers stay in compliance. The agency said it is still considering "issues of fact, law and policy related to the exemption, and more generally, its regulation of fiduciary investment advice."
A simple but important task you can help married couples with is to make sure the beneficiary designations on their IRAs are updated. Otherwise, other heirs might be able to access the accounts, and the rollover rights of the surviving spouses might be compromised. (PFP/PFS members -- practical retirement planning guide; AICPA members -- excerpt)
The coronavirus relief legislation passed near the end of 2020 ultimately omitted a provision that would have called on the Social Security Administration to remind people nearing age 65 of their ability to sign up for Medicare Part B. This article reviews Medicare enrollment issues as well as some pitfalls to watch for. (PFP/PFS members -- retirement health care coverage guide; AICPA members -- excerpt)
IRAs with automatic enrollment features can in some circumstances help people delay filing for Social Security, thus boosting the value of benefits payments, research shows. Modeling by The Pew Charitable Trusts suggests that, by 2050, a majority of workers with auto-IRAs with 6% default contributions could postpone filing for Social Security for a year or more. (PFP/PFS members -- Social Security planning guide and a free webcast with CPE on Tuesday.
Bipartisan momentum is building in Congress to repeal the $10,000 cap on state and local tax deductions. A caucus of 21 Democrats and nine Republicans has formed to push for an expansion of the SALT deduction.
The Internal Revenue Service is working on implementing a program for the enhanced child tax credit, and IRS Commissioner Charles Rettig told a Senate committee that "we fully anticipate to launch by July 1." Under recent legislative changes, parents will be able to receive $3,600 for children younger than 6 and $3,000 for other children age 17 or younger.
Concerns about inflation have returned to haunt investors and savers given the federal government's enactment of policies designed to help the economy recover from the coronavirus crisis. Clients can use several vehicles to prepare for inflation, including Treasury inflation-protected securities, investments that track commodities and dividend growth stocks.
Millennial investors have shown an affinity for investment products and advice that incorporate environmental, social and governance factors, according to a study by J.D. Power. In addition, some $68 trillion in assets are expected to pass from baby boomers to millennials during the next decade.
New podcast: The Sensible Taxation and Equity Promotion Act (STEP) of 2021
On March 29, Sen. Chris Van Hollen and Rep. Bill Pascrell proposed legislation that would result in the realization of capital gains on the date property is transferred by gift, trust or death. In this PFP Section podcast episode, Bob Keebler, CPA/PFS, gets you up to speed on the latest, including:
What the proposals say and the similarities and differences in the Senate and House versions
Exceptions for personal property, transfers to spouses and gifts/bequests to charity
The need to be mindful of the connection between these proposals and others that suggest a 39.6% tax rate on capital gains when income exceeds $1 million
Planning strategies to be prepared if these bills become law
(Open to all)
New in the PFP Learning Library: Financial Advice in the Age of COVID
The AICPA's Personal Financial Planning Section is the premier provider of information, tools, advocacy and guidance for advisors who specialize in providing estate, tax, retirement, risk management and/or investment planning advice to individuals, families and business owners.
About the CPA/PFS Credential: The Personal Financial Specialist program allows CPAs to gain and demonstrate competence and confidence in providing estate, tax, retirement, risk management and/or investment planning advice to individuals, families and business owners through experience, education, examination, and a resulting credential.
AICPA Personal Financial Planning Section Resources