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Bob Veres Media Reviews: "Is 4.5% Still Safe?"

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PFP News


Member-Exclusive News, Resources and Events


June 22, 2016

In This Issue

Advocacy: AICPA Comments Regarding Canadian Personal Financial Regulation Issues

Advocacy: AICPA Calls on IRS to Clarify Virtual Currency Guidance

Leg/Reg Update: IRS Released Revised Draft Instructions for Form 8971

T3 Tech Hub Update: Compliance Made Easier through Technology

Updated for 2016: The CPAs Guide to Financial and Estate Planning, Volume 1 (2016 Edition)

Next Week! Webcast: Trusts as Beneficiaries of IRAs

Bob Veres Media Reviews: "Is 4.5% Still Safe?"

AICPA, CIMA Members Overwhelmingly Approve Proposal to Position Profession for Future

AICPA Seeking Small Business Client Success Stories

CPA/PFS Corner: Free PFS Exam Registration; Extended Deadline for PFS Exam

Other News Audio Clip: IRS Ruling on Surviving Spouse IRA Rollover in a Community Property State; Updated for 2016: Planning After ATRA and the Net Investment Income Tax; Updated for 2016: Guidance on Roth IRA Conversions; Article: Life Planning: A More Personal Approach to Finance; Attend the AICPA Advanced Estate Planning Conference



PFP News & Resources


Advocacy: AICPA Comments Regarding Canadian Personal Financial Regulation Issues


In support of our colleagues at CPA Ontario, and in collaboration with the Global Accounting Alliance, the AICPA Personal Financial Planning Division commented last week on regulation efforts set forth by the Ontario government to enhance the regulation of those practicing as personal financial planners.  The AICPA recognizes this activity as a global issue as the efforts have captured the attention leading accounting organizations around the world.  The government has appointed an Expert Committee to construct an enhanced regulatory regime.  In the comments provided to the expert committee, the AICPA emphasized:



The single most important element towards making a meaningful difference in the interest of the public is to ensure that all providers of personalized financial planning advice adhere to a statutory best interest duty


Regulated professionals, including the CPAs, should be recognized in the existing regulatory framework and acknowledged as meeting the recommendations given the rigorous regulatory regimes already in place


Involve professional bodies with extensive experience in setting and enforcing standards to assist in creating the minimum standards in Ontario


Click here to read the comments in full. 


Advocacy: AICPA Calls on IRS to Clarify Virtual Currency Guidance


While virtual currency is less of a novelty now, CPAs are still faced with many gray areas in advising their clients on tax-related issues.  The AICPA called on the IRS to clarify rules in areas such as valuation, charitable contributions and gains and loss calculation.  “The issuance of clear guidance in this area will not only reduce the confusion and burden for tax preparers but also will allow taxpayers to accurately comply with IRS rules,” the AICPA says in their letter to the IRS.



Leg/Reg Update: IRS Released Revised Draft Instructions for Form 8971


On June 8, the IRS issued updated draft instructions for Form 8971 with regard to estate basis consistency reporting. The instructions state to attach a copy of completed schedule A for the form but do not include any other attachments.  For additional useful information and resources regarding regulations, requirements for filing the forms and other accounting and legal issues on 8971, refer to the Estate Basis Consistency Reporting Resource Center which includes a recorded webcast, presentation materials and updates with how to comply.


T3 Tech Hub Update: Compliance Made Easier through Technology


In this article, Bob Veres highlights new technology programs available that will help alleviate the compliance burden.  Veres reviews how smart financial advisors can use new apps that:


automate the oversight of cybersecurity

create a research library that is available right at their fingertips

automate the collection of client data that the auditors will ask for.


To review more T3 Technology resources and commentary, click here.



Updated for 2016: The CPAs Guide to Financial and Estate Planning, Volume 1 (2016 Edition)


This comprehensive publication provides guidance to CPAs advising clients in estate, tax, retirement, investment, and risk management matters, as well as reflects the planning implications of major tax law changes, including the 2015 PATH Act, estate basis consistency reporting rules and more. Volume 1 of 4 covers the art of financial planning, estate and client analysis, the co-ownership of property, lifetime gifts to individuals, charitable giving, and the use of trusts. (Volumes 2-4 will be available and included in the collection soon.)  New enhancements for 2016 in Volume 1 include:


The 2015 PATH Act

The New Consistent Basis Rules

Explanation of a Grantor Charitable Lead Annuity Trust

Checklist of Common Estate Planning Mistakes and How to Avoid Them

Checklist to Determine How Much Life Insurance to Carry



Next Week: Webcast: Trusts as Beneficiaries of IRAs


As the use of trusts in estate planning becomes increasingly popular for both tax and non-tax reasons, and clients continue to accumulate more and more assets in retirement accounts, the use of trusts as beneficiaries of IRAs is increasingly desirable and necessary. Unfortunately, though, the rules pertaining to IRAs payable to a trust after death are complex and challenging. In this webcast, Michael Kitces will explore the unique requirements for IRAs to preserve and maximize their tax deferral after death when a trust is the beneficiary.  Register here for the event which will take place on June 29th from 1:00 - 2:15 pm ET.  PFP/PFS section members can access this webcast, and all recorded webcasts, shortly after the event in the Learning Library.



Bob Veres Media Reviews: Is 4.5% Still Safe?


Bob Veres Media Reviews are designed to save you hours of reading time each month -- giving you time for more productive activities.  Read Bob’s write-ups of articles in June’s Financial Planning magazine, including those rated with high relevance:


“What It All Means (shifting as a result of DOL)” by Dan Jamieson

“Junxure Cloud Comes of Age” by Joel Bruckenstein

“Is 4.5% Still Safe?” by Ben Bengen

“DOL Rule Means Lots of Homework This Year” by Skip Schweiss


Access other editions of media reviews, Inside Information and e-columns.


AICPA, CIMA Members Overwhelmingly Approve Proposal to Position Profession for Future


The results are in and the AICPA ballot passed 86.5 percent to 13.5 percent, according to independent tabulator Survey and Ballot Systems. CIMA members also endorsed the proposal 89.7 percent to 10.3 percent, according to their independent tabulator Electoral Reform Services.  As a result of this overwhelming support by both organizations, we will join forces to create a new association focused on strengthening the entire accounting profession through stronger advocacy, enhanced member resources and a broader platform to reach the next generation. You will remain at the core of everything we do. And the AICPA will continue its strong commitment to promoting, protecting and growing the CPA. You will get automatic dual membership in the AICPA and new association as part of your regular AICPA dues, which will continue to be set and adjusted in line with historic norms.



AICPA Seeking Small business Client Success Stories


The AICPA is soliciting member CPA stories about their relationship with small business clients, and how this relationship has resulted in successful growth.  The stories will be featured in the next #CPAPOWERED campaign, the AICPA’s national initiative to promote the value and reputations of CPAs serving small businesses and set to launch this fall.  Please contact by June 28 to share your story in more detail.



CPA/PFS Corner



Free PFS Exam Registration  
Purchase any PFS exam review product and include the PFS exam in the shopping cart at no charge for first-time exam takers during the summer exam period of July 1 to August 15.

Extended Deadline on PFS Exam
Registration has been extended to June 30 for the upcoming summer 2015 PFS exam.  Take the exam any time from July 1 to August 15 at convenient testing centers located across the country. The Self-study PFS exam review course is available with 37 hours of CPE.  Alternatively, for those that do not need CPE, access the on-demand boot camp which consists of seven recorded on-demand sessions. Learn more at

Go to for more information or email us at if you have any questions.



Other News



Audio Clip: IRS Ruling on Surviving Spouse IRA Rollover in a Community Property State
In PLR 201623001, the IRS held that a surviving spouse could not make a spousal rollover of her deceased husband's IRA that was assigned to her by a court in settlement of her claim to a community property interest. Bob Keebler, CPA/PFS, reports. The text of the ruling can be found at here.  Listen to the audio clip, courtesy of Leimberg Information Services, Inc. 

Updated for 2016: Planning After ATRA and the Net Investment Income Tax
The American Taxpayer Relief Act of 2012 (ATRA) and Net Investment Income Tax (NIIT) added more complexity to planning given that you now have to navigate through a multi-layer tax system in conjunction with running multi-year scenarios.  Some of the updated resources include Capital Gains Harvesting Chart, Applying the 3.8% Net Investment Income Tax Chart and 75 Best Income Tax Strategies for Financial Professionals to Generate TAX ALPHATM .

Updated for 2016: Guidance on Roth IRA Conversions
Helping clients determine whether or not a Roth IRA Conversion makes sense, what the short and long-term implications look like and factors they should consider is an immediate value-add opportunity for CPA financial planners.  Robert Keebler, CPA/PFS, has updated several technical pieces and calculators including The Roth Conversion Decision, Roth Quadrants Chart and Roth IRA Distribution Flowchart.

Article: Life Planning: A More Personal Approach to Finance
Mark Astrinos, CPA/PFS, stresses the importance of focusing on more than numbers with clients.  Astrinos suggests in this article that adding life planning in practice is a way to bring more meaning to the financial planning you’re already doing for clients.  Life planning is simply financial planning that gives the client an integral role in the planning process, often yielding a stronger sense of commitment from the client to the plan.

Attend the AICPA Advanced Estate Planning Conference
With recent changes in tax and estate legislation, your clients will be seeking advice and practical knowledge on how these new laws will directly benefit them. Being able to meet their objectives and offer strategic options in ways that are tax efficient is key to gaining their confidence and measuring success.  Leading the way, as it has for over 30 years, the AICPA Advanced Estate Planning Conference focuses on today’s estate planning opportunities in an intense three days. This in-depth learning program delivers the expertise, hands-on training, and up-to-the minute information practitioners have come to expect in order to service their clients in the best way possible.  Register now to secure your place for the event taking place July 18 - July 20, 2016 in Washington, DC.  PFP/PFS members save $100 when you login using your AICPA member account.





PFP Section-sponsored webcast recordings and materials are available as part of your PFP/PFS membership and are posted to if you would like to listen again or if you are not able to attend the live event.

Conference recordings are available at no charge to conference attendees or for purchase to those who weren’t able to attend. Recordings from past conferences are available at aicpaconference

Upcoming PFP Section-Sponsored Webcasts:

Watch PFP News for registration links for upcoming events!

Next Week! Using Trusts as the Designated Beneficiary of a Stretch IRA
June 29, 1-2:15pm ET
Discounted CPE.

Tax Aware Investing
July 13 from 1-2:45pm ET
Discounted CPE.

Retirement Planning for the Business Owner
July 20, 1-2:45pm ET
Discounted CPE.

Latest Trends and Developments in Long Term Care Insurance
August 17, 1-2:15pm ET
Discounted CPE.

Using Charitable Trusts to Avoid Capital Gains Taxes & the 3.8% Surtax
Sept. 21 from 2-3:45pm ET
Discounted CPE.

Estate Planning for the 99%
Sept. 28 from 1-2:45pm ET
Free with CPE.

Post-Mortem Planning
Oct. 19 from 1-2:45pm ET
Discounted CPE.

Proactive Year-End Planning After the Election
Nov. 22 from 1-2:45pm ET
Discounted CPE.

Tax Planning with Life Insurance
November TBD
Discounted CPE.

Divorce Taxation
December TBD
Discounted CPE.

Upcoming Conferences:

Advanced Estate Planning Conference
July 18-20, 2016
Discounted CPE.

Sophisticated Tax Planning for Your Wealthy Clients
November 10-11, 2016
Discounted CPE.

National Tax Conference
November 14-15, 2016 Discounted CPE.

Personal Financial Planning Summit
January 22-25, 2017
Discounted CPE.

Advanced PFP Conference (ENGAGE)
June 12-14, 2017
Discounted CPE.


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