The National Association of Insurance and Financial Advisors (NAIFA) is the premier organization for professionals since 1895. I have been a member since 1975 and currently serve as the Washington State Chairman for the Political Action Committee.
I will be flying out Sunday morning, January 27th for Washington DC along with my Co-chair, Alex Collins of Bothell and our State Political Involvement Chair Richard Miller of Yakima. We'll have meetings and training all day Monday the 28th. Our "Day On The Hill" is Tuesday the 29th. We have appointments to see Senator Patty Murray, Senator Maria Cantwell, Representative Susan DelBene and Representative Dave Reichert. In reality, we may only get a chance to talk with legislative aids as the House will be in recess and the Senators seldom take time to meet with constituents personally.
We'll be discussing tax reform issues that are being considered such as taxing life insurance benefits, IRA and 401(k) accounts as well as employer provided benefits. With the budget being in such a mess, legislators are looking everywhere to find money to feed their spending habits. For example, life insurance death benefits and the cash values in a life insurance policy have been given special tax treatment since the income tax laws went into effect in 1913. That is why when a widow receives a death benefit from her husband's life insurance there is no income tax due. Some legislators want to change all of that.
They would change the laws so that when a person dies and the beneficiary receives, say $100,000 of life insurance proceeds, the government will take 30% of it. Can you imagine a widow getting a tax bill for $30,000 on the money her husband arranged to be paid so that she can remain in her own home and take care of the kids?
Watch for reports on our experiences next week.
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