Wealth management

New York — Assets in 529 college savings plans jumped by nearly 14 percent in the first quarter of 2004, to an estimated $40 billion, according to data released in late May by the College Savings Foundation. At the end of the first quarter, 529 plan assets were up by 13.9 percent from roughly $35.1 billion at the close of 2003.

A taxpayer is allowed a deduction in computing adjusted gross income (an above-the-line deduction) for interest (student loan interest) paid on qualified education loans. The maximum annual deduction is $2,500, but the amount otherwise deductible is phased out ratably for taxpayers with modified AGI of $50,000 to $65,000 ($100,000 to $130,000 for joint returns).

by Cynthia Harrington

PENSION CRISES SPUR COMPANIES TO CHANGE PLANS: Beset by increased costs, falling investment returns and pressure to limit future risk, more than half of the 125 companies participating in a Deloitte Consulting survey said that they are considering or already have made changes to their pension plans in the past year.

by Bob Rywick

by Cynthia Harrington

NEW YORK LIFE APPOINTS MURDOCK: New York Life Investment Management LLC appointed Brian Murdock, 48, as president of the $183 billion investment concern, headquartered in Parsippany, N.J.

DENVER — As part of plans announced earlier to consolidate its headquarters in Denver and shutter its Atlanta office by the end of this year, the Financial Planning Association is preparing to move four of its key departments from Atlanta to Denver.

Generally, alimony payments are deductible by the payor in computing adjusted gross income, and are includible in gross income by the payee.

by Cynthia Harrington

SNOW SAYS ADMINISTRATION WILL WORK TO REFORM FUND INDUSTRY: Treasury Secretary John Snow told a financial lobbying group that the Bush administration supports an overhaul of the $7.5 trillion mutual fund industry, and would work with fund companies on possible reform strategies.

A qualified distribution from a Roth IRA is not includible in a taxpayer’s gross income. A qualified distribution is a distribution that is made after the expiration of a five-year holding period, and is made:

by Phyllis Bernstein

FPA PUSHES SEC TO CONSIDER CFP BOARD CODE OF ETHICS: The 28,000-member Financial Planning Association has lent its support to a Securities and Exchange Commission proposal requiring registered investment advisors to adopt a specific code of ethics. At the same time, though, it asked the commission to consider the obligations that planners already have under the CFP Board Code of Ethics.

Gain on the sale of qualified securities to an employee stock ownership plan or to an eligible worker-owned cooperative is not recognized by any taxpayer except a C corporation — that is, if the taxpayer or the taxpayer’s executor elects not to recognize the gain and buys qualified replacement property within the replacement period defined below.

It’s your firm’s partner meeting. The first item on the agenda is adding personal financial planning to the practice. While this is certainly very exciting, it presents an assortment of new challenges — not the least of which is getting the partners to approve the idea.

PWC URGES TRANSPARENT REPORTING MODEL FOR MUTUAL FUNDS: While improving mutual funds’ disclosure requirements is a crucial step, it isn’t enough — funds must adopt a new reporting model that is more transparent, according to a white paper by PricewaterhouseCoopers’ U.S. investment management industry group.The paper, “Communicating the Value of Your Funds: A New Model for Transparency in Fund Reporting,” concludes that disclosure alone, although critical, isn’t the answer to what investors need — and it doesn’t constitute transparency.

by Bob Rywick

by Cynthia Harrington

WORRIES OVER DILUTION, NOT EXPENSING, DRIVING OPTIONS SCALEBACKS: Despite a booming stock market, three-quarters of Standard & Poor’s 500 companies surveyed said that they are planning to shift away from stock options, but not as a result of expensing, according to a survey by Deloitte & Touche — rather, they’re running out of shares for option grants.