Compliance August 25, 2015

Certain Identity Theft Benefits Not Considered Taxable

The IRS says identity protection received as a result of a data breach will not be considered taxable benefits.
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In Announcement 2015-22, the Internal Revenue Service (IRS) notes that data breaches at organizations’ recordkeeping systems can, and do, happen, and in response to such events, customers and/or employees are offered identity protection services.

The IRS says it will not assert that an individual whose personal information may have been compromised in a data breach must include in gross income the value of the identity protection services provided by the organization that experienced the data breach. Additionally, the agency will not assert that an employer providing identity protection services to employees whose personal information may have been compromised in a data breach of the employer’s (or employer’s agent or service provider’s) recordkeeping system must include the value of the identity protection services in the employees’ gross income and wages. The IRS will also not assert that these amounts must be reported on an information return (such as Form W-2 or Form 1099-MISC) filed with respect to such individuals. 

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The agency says the announcement does not apply to cash received in lieu of identity protection services, or to identity protection services received for reasons other than as a result of a data breach, such as identity protection services received as part of an employee’s compensation benefit package. The announcement also does not apply to proceeds received under an identity theft insurance policy; the treatment of insurance recoveries is governed by existing law.

Products August 24, 2015

MetLife Offers Retirement Planning Resources for Teachers

The “MetLife 3 R’s to Retirement” campaign and website offer resources and guidance to public school district employees.
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As the school year begins across the country, teachers may be focused on students, but it is also a time for them to look at their benefits and future financial success.

MetLife has launched its “MetLife 3 R’s to Retirement” campaign and website, which offers a range of resources and guidance to school employees. “We’re encouraging teachers of all ages to ‘review’ their retirement savings goals, ‘reassess’ their progress, then ‘retire’ when they’re ready,” says Derrick Kelson, vice president of MetLife Premier Client Group, Workplace Initiatives. “In doing so, we aim to help them more strategically contribute to their 403(b) plans and ultimately, achieve a more financially secure retirement.”                         

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Tools provided on the website can help educators assess their savings and align their progress with their overall retirement goals. The campaign also promotes the one-on-one retirement planning guidance MetLife financial services representatives provide to educators to encourage them to take advantage of this available resource.

The website includes a “Cost of Waiting” estimator, “Retirement Distribution Planner,” and “Retirement Income Planner.” There are videos about the importance of starting early, investing in mutual funds and asset preservation, as well as worksheets to keep track of monthly expenses and identify ways to save, as well as determine which investments are most appropriate and whether a traditional or Roth IRA is best.

The campaign website is at http://3r.metlife.com/3r/.

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