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Monthly Archives: August 2017

White House - TAXES

Throwback Thursday – Tax Reform and Taxing 401K Plan Contributions

Last April I wrote a piece on what a bad idea I thought it was to Rothify 401K plans (see “Trump Administration Looking at Changing the 401K Tax Rules“). As you probably know already, participant 401k contributions are taken out of your pay before federal and state income taxes. They are taxed for FICA but not for income tax purposes. Then when you withdraw the funds, they and the income earned is taxable. The current administration is considering making 401k contributions work like Roth plans work today where you contribute after tax dollars, but when you withdraw your funds at retirement, they are tax-free, including the income. The purpose behind changing the rules would be to raise income taxes to support other spending initiatives by the administration. In other words, if they are successful in changing the law, the billions of dollars contributed each year to 401k plans would all of a sudden become subject to income taxes. The Joint Committee on Taxation has shown that the tax preferred treatment of defined contribution plans will cost 58.6 billion in foregone revenue between 2016 and 2020. Read more

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.
Pulling the curtain back on Fund Companies Corporate Actions communications with Dealers

Peeking Behind the Curtain of Mutual Fund Corporate Actions

The accurate and timely tracking of corporate actions is an integral component in the day-to-day management of mutual funds and the Broker Dealers, Bank Trusts and Record Keepers that distribute them. (We’ll refer to this group as “Distributors” or “Dealers” in this blog post.) Today in the U.S. there are more than 8,000 mutual funds available to distributors, representing $17 trillion of Assets Under Management (AUM), each of them operating with a different agenda and goal.

That means that distributors must constantly be prepared to accept and process those actions to maintain a current record of information about the funds that they offer to their clients. Ultimately, it is their responsibility to ensure that they are trading by the rules and guidelines defined by the mutual fund complex. Read more

Chris Maynard
Chris is a Project Manager / Business Analyst for Delta Data. He has been in the Financial Services Industry for 30 years, the last 19 with Delta Data. In Chris’s role as a product champion and client advocate, he has fostered many client relationships and helped them navigate the technologically complex and rapidly evolving world of back office mutual fund processing.