4. Income Tax
The Plan received a favorable determination letter (December 11, 2013) from the Internal Revenue Service (IRS) stating that the Plan is qualified
under Section 401(a) of the Code and, therefore, the related trust is exempt from taxation. In connection with this determination by the IRS, the Company amended and restated the Plan. Once qualified, the Plan must operate in conformity with
the provisions of the Plan and the Code to maintain its qualification. The Plan Administrator has indicated that it will take necessary steps to bring any Plan operational defect, if any, into compliance with the Code. The Plan has been amended
subsequent to receiving the favorable determination letter. However, the Plan Administrator believes that the Plan, as amended and restated, remains qualified and the related trust remains tax-exempt.
Effective January 1, 2022, the Plan was amended and restated onto the Transamerica Retirement Solutions, LLC Pre-Approved 401(k) Profit Sharing Plan. Transamerica Retirement Solutions, LLC received a favorable opinion letter from the
IRS on June 30, 2020.
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, 2022, 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
2019.
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, 2022, and 2021, the Plan held 6,766,849 and 7,117,598 shares with a cost basis
of $66,911 and $73,355, respectively. During the year ended December 31, 2022, the Plan recorded dividend income from Aegon N.V. common stock of $1,211. During the year ended December 31, 2022, there were $2,242 of purchases and $4,381 of
sales of Aegon N.V. common stock.
At December 31, 2022, and 2021, the Plan had invested $227,790 and $623,814, respectively, in the TRS Collective
Trust, $530,119 and $507,819, respectively, in the Stable Fund and $34,123 and $35,161, respectively in Aegon stock. During the year ended December 31, 2022, there were $58,982 of purchases and $285,746 of sales of TRS Collective Trust and
$148,052 of purchases and $125,812 of sales of the Stable Fund.
These investment transactions involving funds administered by Principal Trust Company and
State Street 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
(depreciation) in fair value of investments reflected on the Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2022, for Aegon N.V. common stock and TRS Collective Trust were $2,314 and ($169,240),
respectively. Interest reflected on the Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2022, for the Stable Fund was $17,107. Notes receivable from participants are considered parties-in-interest transactions.
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