Insurance products and employee benefit plans are powerful planning tools, but each carries its own complex, ever-changing set of tax issues — and advisers can't deliver the thorough guidance clients depend on without a firm grasp of this terrain. Tax Facts on Insurance & Employee Benefits meets that need with a comprehensive, easy-to-navigate resource covering everything from annuities and life insurance to ERISA compliance, qualified and nonqualified compensation plans, and health and long-term care insurance. Whether you're structuring a benefits package or evaluating the tax treatment of a specific plan, this is the reference built to keep pace with a constantly shifting landscape.

This book features:

• Thousands of easy-to-read Q&As covering every aspect of insurance and employee benefits tax issues
• Practice Points that give concise, practical advice for handling real-world issues
• Detailed explanations of the insurance products and employee benefits most commonly used by individuals and businesses
• Practical guidance for advisers of all kinds — including in-house HR professionals, insurance producers, and third-party advisers
• Insight designed to help avoid costly mistakes before they happen, and correct them when they do

New in the 2027 Edition:

• One Big Beautiful Bill Act clarifications, including:
• the adoption tax credit, including the now-refundable portion and the maximum credit amount
• the accelerated sunset of the electric vehicle tax credit, ending eligibility for vehicles placed in service after September 30, 2025
• codification that compensation paid by all members of a controlled group is aggregated when determining whether a publicly-held corporation exceeds the $1 million compensation limit
• the expanded definition of "covered employee" in the tax-exempt context to include any employee of the applicable tax-exempt organization
• the removal of IRA distribution penalties for long-term care insurance costs, effective 2026
• New section on the 2026 DOL fiduciary safe harbor for selecting designated investment alternatives in 401(k) plans
• SECURE Act 2.0 update: the saver's credit is replaced by a 50% federal matching contribution, deposited directly into existing 401(k)s and IRAs, effective 2027
• Stephanie Paula Farber v. Lynn E. Feldman: how excess IRA contributions can also cause an IRA to lose its tax-exempt status
• CMS final rule update: HRAs, ICHRAs, FSAs, and similar account-based plans are excluded from creditable coverage notice requirements beginning January 1, 2027
• Ayla A. Savage v. Commissioner: the Tax Court's ruling that wages paid by two S corporations, non-deductible under IRC Section 280E, could not be included when calculating the QBI deduction
• IRS's new automatic exemption from penalty (AEP) process, replacing the existing first-time abatement (FTA) process

Key Topics Covered:

• Annuities and life insurance products
• ERISA regulations for employee benefit plans
• Health and long-term care insurance
• Disclosure and record-keeping requirements
• Qualified and nonqualified compensation plans
• Defined contribution and defined benefit deferred compensation plans
• Funded and unfunded plans
• PBGC requirements
• Estate and gift tax consequences