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Monthly Archives: April 2017

401(k) tax rules

Trump Administration Looking at Changing the 401(k) Tax Rules — Very Bad Idea

The Trump administration has been clear in stating its objective to reduce individual and corporate tax rates. But to fund the reduction in tax revenue, one of the items they are looking at changing is the deductibility of employee 401(k) deferrals. The Joint Committee on Taxation, which acts as an advisor to Congress with research on the tax code, has shown that tax-preferred treatment of defined contribution plans will cost 583.6 billion in foregone revenue between 2016 and 2020. This could be very tempting for congress as it looks at ways to fund the tax cuts. Choosing to change the 401(k) tax rules by doing away with the tax deferral benefits of employee 401(k) contributions would be shortsighted and very harmful to the retirement system in the US.

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Burton Keller
L. Burton Keller was a principal founder of the company in 1985 and currently focuses on strategic initiatives for the company. Mr. Keller also serves as company representative to the DTCC and is an active member of the Bank, Trust and Retirement Advisory Committee of the Investment Company Institute.
Time running out for Broker Dealers

Will You Be Ready If FINRA Calls? Brokers Are Running Out of Time for Mutual Fund Fee Waiver Remediation

The Problem

Investment companies have long allowed some retirement plans to buy Class A mutual fund shares with no up-front commission, so investors can benefit from investing with no commission as well as benefiting from lower management fees. But during routine audits in 2014, the Financial Industry Regulatory Authority (FINRA) discovered that a lot of broker-dealers hadn’t been reading (and/or complying with) all the fine print on fund prospectuses. Because of inadequate supervisory controls and training, investors entitled to sales charge waivers were either paying the sales charge, or being sold Class B or C shares with back-end sales charges and higher ongoing fees and expenses, even when A shares were available. Read more

Steve Tomasheski
Steve is a Sr. Sales Director at Delta Data representing the sell-side solution suite or Distribution Services. For almost 15 years Steve has made a career managing complex enterprise SaaS sales cycles with a heavy focus in FinTech. Connect with Steve on LinkedIn.