Products August 2, 2011

Allianz Life Launches Fixed Index Annuity

Allianz Life Insurance Company has launched Allianz 360, a fixed index annuity (FIA) exclusively to Field Marketing Organizations and agents associated with the Allianz Preferred distribution model.
Reported by

Allianz 360 is currently available in 36 states and offers increasing income benefits through accumulation and into retirement. According to the company , the longer clients hold Allianz 360 before beginning lifetime income withdrawals, the greater the percentage of income available for withdrawals will be. 

While accumulating, the lifetime payout percentage increases every year the client holds the contract prior to income beginning, starting at age 40. Allianz 360 also offers a 50% interest bonus of any interest credited every year prior to taking income withdrawals.  

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The interest and bonus are credited to the accumulation value, which means it is available for traditional annuity payments, lump sum (surrender charges may apply), income withdrawals or death benefit. These benefits are available via a mandatory rider, which carries a charge of 0.95% of the accumulation value. 

“It’s clear that many boomers are worried about how factors like inflation and longevity will affect the stability of their retirement income,” said Eric Thomes, Allianz Life Senior Vice President of Sales. “Allianz 360 ensures they are protected with guaranteed lifetime income that has the opportunity to increase when they are in retirement.”

Compliance August 2, 2011

Senators Introduce Bill to End Stock Option Tax Break

Senators Carl Levin (D-Michigan) and Sherrod Brown (D-Ohio) introduced legislation to end a corporate tax break allowing corporations to deduct stock option expenses on their tax returns in amounts greater than the expenses shown on their books.
Reported by

The Ending Excessive Corporate Deductions for Stock Options Act, S. 1375, would end excessive corporate tax deductions for stock options by requiring such deductions not to exceed the expense shown on corporate financial reports filed with the Securities and Exchange Commission.  The Joint Committee on Taxation has estimated that ending this tax break would raise $24.6 billion in corporate tax revenues over ten years.  

The announcement explained that because current accounting rules value stock options on their grant date and the tax code values stock options on their exercise date, the two numbers do not match.  Stock option data over the past five years shows that the resulting corporate tax deductions, taken as a whole, far exceed the expenses shown on corporate books.  

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Specifically, the Ending Excessive Corporate Deductions for Stock Options Act would: 

  • require the corporate tax deduction for stock option compensation not to exceed the stock option book expense shown on a corporation’s financial statement; 
  • allow corporations to deduct stock option compensation on their tax returns in the same year it is recorded on the corporate books, without waiting for the options to be exercised; 
  • ensure research tax credits use the same method for calculating stock option pay expenses when computing wages eligible for the tax credit; 
  • make no changes to stock option compensation rules for individuals, or for incentive stock options under Section 422 of the tax code which may be used by start-up companies and other small businesses; 
  • create a transition rule to ensure stock options granted before the enactment date are tax deductible; and 
  • make stock option deductions subject to the existing $1 million cap on corporate tax deductions for compensation paid to top executives of publicly held corporations. 
Text of S. 1375 is at http://thomas.loc.gov/cgi-bin/query/z?c112:S.1375:.

«