Financial planning

STUDY SAYS TECH FIRMS SLASH OPTION GRANTS: The high-tech industry has decreased its use of broad-based stock option grants by approximately 15 percent to 20 percent, according to two studies by Mellon Financial Corp.’s Human Resources & Investor Solutions business.

by Bob Rywick

Florham Park, N.J. and New York — With the 2004 election just three months away and campaign promises popping up more frequently than summer barbecues, chief financial officers polled by Financial Executives International indicated that incumbent George W. Bush ranked ahead of Democratic challenger John Kerry in critical areas such as the economy and homeland security.

TREASURY, IRS FINALIZE DISTRIBUTION REGS: The Treasury and the Internal Revenue Service have finalized regulations regarding minimum distribution rules for defined-benefit plans and annuity products purchased with account balances in other types of qualified retirement plans and IRAs.

Washington — Convergence in accounting standards between the United States and the European Union is the most important issue facing capital markets in both regions, according to financial experts who recently testified before a House panel.

Rochester, N.Y. — An alliance of North American CPA firms that offers training, marketing and resources for Sarbanes-Oxley Rule 404 compliance work has expanded its ranks to include 13 firms in four months, and hopes to grow to at least 70 by the end of the year.

By Bob Rywick

By Cynthia Harrington

TIBURON MP SAYS U.S. INVESTABLE ASSETS POISED TO BOOM BY 2010: The U.S. market for consumer wealth is poised to triple by 2010, making it a great time to be in the financial advice business, according to the managing partner of market research and strategy consulting firm Tiburon Strategic Advisors.

Washington — Just as consulting giant Accenture began popping the champagne corks to celebrate the award in early June of a $10 billion homeland security contract, lawmakers passed a measure to void the engagement because the firm is not based in the U.S.

New York — Global risk consulting concern Kroll Inc. widened the European presence of its Corporate Advisory & Restructuring Group, luring aboard two KPMG executives from that Big Four firm’s corporate recovery practice in France and establishing an alliance with a German restructuring and insolvency firm.

Austin, Texas — Envision Consulting Group, a Best Software reseller for both the MAS 500 and SalesLogix lines, has incorporated a wholly owned subsidiary specializing in mobile business applications for enterprise-level and customer relationship management software customers.

New York — While the majority of workers said that the offshore outsourcing of jobs is bad for the U.S. economy, they don’t think their own jobs will be impacted, according to a survey by staffing firm Hudson.

by Bob Rywick

by Seth Fineberg

CROWE CHIZEK NAMES MCGRATH TO LEAD FINANCIAL INSTITUTIONS GROUP: National firm Crowe Chizek & Co. has named J. Kevin McGrath managing executive of its Financial Institutions Group, succeeding Carl Bossung.

Seattle — A federal court here has barred a Tacoma, Wash., resident from selling fraudulent tax schemes based on an argument that employees don’t have to pay taxes on income they get from U.S. sources.

Washington — In a victory for the Internal Revenue Service, a Chicago federal judge ordered a Texas law firm to turn over documents and the names of clients.

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).