Accounting principles generally accepted in the United States require plan management to
evaluate uncertain tax positions taken by the Plan. The Plan recognizes the Financial Statement effects of a tax position when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The Plan
Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2020, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or
disclosure in the Financial Statements and does not believe this position will change in the next twelve months. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing
jurisdictions; however, there are currently no audits for any tax periods in progress. Section 6501 of the Code imposes a three-year limitation period on assessment of additional taxes. As a result, the Plan is no longer subject to income tax
examinations for tax years prior to 2017.
5.
Parties-in-Interest Transactions
The Company and its
affiliate, TRS, provide all administrative services at no charge to the Plan. The Company does not determine the cost of its services.
The Plan invests in shares of Aegon N.V. common stock and at December 31, 2020 and 2019, the Plan held 7,408,560 and 7,456,495 shares
with a cost basis of $79,191 and $88,730, respectively. During the year ended December 31, 2020, the Plan recorded dividend income from Aegon N.V. common stock of $457. During the year ended December 31, 2020, there were $2,746 of
purchases and $3,631 of sales of Aegon N.V. common stock.
At December 31, 2020 and 2019, the Plan had invested $0 and $820,107,
respectively in TFLIC Separate Accounts, $667,850 and $20,744, respectively in the TRS Collective Trust and $525,412 and $453,474, respectively in the Stable Fund and $29,264 and $33,778, respectively in Aegon stock. During the year ended
December 31, 2020, there were $8,990 of purchases and $832,288 of sales of TFLIC Separate Accounts, $644,148 of purchases and $179,467 of sales of the TRS Collective Trust and $247,390 of purchases and $175,489 of sales of the Stable Fund.
These investment transactions involving funds administered by Wells Fargo Bank N. A. and State Bank and Trust Company as custodians of the
Plan are considered party-in-interest transactions. These transactions, based on customary and reasonable rates, are not, however, considered prohibited transactions
under Section 401(b) of ERISA and the regulations promulgated thereunder.
The net appreciation in fair value of investments
reflected on the Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2020 for Aegon N.V. common stock, TFLIC Separate Accounts, and TRS Collective Trust were ($3,566), $3,198, and $182,425, respectively.
Interest reflected on the Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2020 for the Stable Fund was $17,184. Notes receivable from participants are considered parties-in-interest transactions.
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