Retirement

The American Institute of CPAs has written to the Treasury Department and the Internal Revenue Service about proposed regulations for automatic contributions to 401(k) plans, as well as cafeteria plans.

The Treasury Department and the Internal Revenue Service issued guidance to address the application of accrual rules for pension plans under the Tax Code.

The Treasury Department and the Internal Revenue Service issued guidance on new pension-funding rules included in the Pension Protection Act of 2006.

The U.S. Supreme Court heard arguments in a case involving the ability of trusts to deduct fees for investment advice.

AccountantsWorld has teamed up with ExpertPlan to help accountants provide retirement-planning services to clients.

WebCPA presents a free online session discussing various facets of philanthropy and its potential benefits for accountants.

The Internal Revenue Service has issued a sample notice that 401(k) and 414(w) plan sponsors can use to tell plan participants about their rights and obligations under the Pension Protection Act’s eligible automatic contribution arrangements and qualified automatic contribution arrangements.

Unfortunately, since December 31 coincides with the tax-reporting period for 99 percent of U.S. individual taxpayers, the average taxpayer will only begin thinking about their 2007 taxes during the first quarter of 2008. Unfortunately, this delay is generally very costly, since almost every individual taxpayer reports taxable income on a cash basis, as opposed to an accrual basis.

Mixing a fixed-income annuity into a retirement income account provides greater long-term wealth for investors than a portfolio of equity and bond investments alone, according to a study by MassMutual Financial Group.

The Treasury Department and the Internal Revenue Service have issued proposed regulations that would make it easier for companies to automatically enroll employees in 401(k) plans at a predefined contribution percentage.

Nearly everyone can use lessons in financial literacy, and Dan Iannicola Jr., deputy assistant secretary for the U.S. Treasury Department's financial education office, provided suggestions on how women accountants can educate their clients.

It finally happened: The first Baby Boomer applied for Social Security this week. Kathleen Casey-Kirschling, a former teacher who was born at one second after midnight on Jan. 1, 1946, applied for Social Security benefits over the Internet, starting what is likely to be an avalanche of applications for retirement benefits.

The October issue of our sister publication CPA Wealth Provider has some information which will shock most. It is a ranking of CPA firms with financial planning practices by assets under management. Eleven have over one billion dollars under management. Yes, I said one billion dollars each with Plante and Moran Financial Advisors leading the pack with $5.255 billion. There are 41 firms listed with $100+ million of assets under management.

The Securities and Exchange Commission has approved a rule from the Financial Industry Regulatory Authority that would crack down on abusive sales of deferred variable annuities, particularly to senior citizens.

Fidelity Investments has begun offering a Web-based retirement-planning tool, Fidelity Retirement Income Evaluator, aimed at helping advisors create and manage retirement plans for clients.

The Virginia Society of CPAs debuted an "Ask a CPA" e-mail program that promises free answers to personal financial questions within three business days.

Accounting firm Grant Thornton has launched a Financial Services Group in the United Kingdom that combines its old Financial Markets Group with the financial services practice it acquired from its merger with RSM Robson Rhodes in the U.K.

Although there are reams of literature and generally accepted guidelines stating that people typically spend 75 percent to 80 percent of their pre-retirement income during retirement, some advisors have found that's not necessarily the case.In fact, some say the spending levels are about the same.

The retirement plan for Fresno County, Calif., employees appeared to be in a pickle when an actuarial firm determined that 5,200 former and current county employees who had been told they would be getting refunds found out they might have to pay extra money into the fund instead.

Senate Finance Committee Chairman Max Baucus, (D-Mont.), and fellow committee member Chuck Grassley, (R-Iowa), are calling on the Internal Revenue Service to do a better job of publicizing the Saver's Credit to encourage more low-to-middle-income workers to save money for retirement.The credit applies to up to 50 percent of the first $2,000 of retirement contributions for families earning up to $50,000 a year. First created in 2001, the credit became permanent in the Pension Protection Act of 2006.