Tax-deferral cap weighed for managers

Another threat to hedge fund managers: A new proposal may keep them from deferring taxes on compensation, The Wall Street Journal reports.
SEP 07, 2007
Another threat to hedge fund managers’ pay: A new proposal may keep them from deferring taxes on compensation, The Wall Street Journal reports. Democratic Congressman Rahm Emanuel of Illinois said that he would introduce a bill that would limit managers’ offshore deferrals to the amount allowed for 401(k) and individual retirement accounts, the Journal said. This year, that amount is $19,500. Currently, managers of funds that are based overseas can put off the income taxes on their pay and reinvest the deferred amount into their funds so that it can grow tax-free, the Journal said. While there was no estimate on how much revenue would come from the proposal, Democratic Congressman Charles Rangel of New York told the Journal he planned to have hearings looking into the issue. In January, the Senate approved a yearly cap of $1 million on all taxpayer deferrals. Mr. Emanuel’s proposal fits with this week’s theme in the Senate Finance and Ways and Means Committees, which held hearings on the carried interest tax hike pitch.

Latest News

Envestnet agrees to buy Vestmark, adding institutional trading muscle
Envestnet agrees to buy Vestmark, adding institutional trading muscle

The deal gives Envestnet institutional-grade trading and tax technology alongside Vestmark's advisory client base

Savvy Wealth lands $100M to scale AI agents for advisors
Savvy Wealth lands $100M to scale AI agents for advisors

The AI-driven RIA has doubled its advisor base to over 150 this year and is on pace to top $100M in annual recurring revenue

Orion expands advisor trading, keeps oversight with firms
Orion expands advisor trading, keeps oversight with firms

New trading tools let advisors execute and rebalance client portfolios directly, while firms retain permission-based control.

Edelman Financial Engines brings fiduciary advice to small business plans
Edelman Financial Engines brings fiduciary advice to small business plans

New ADP-delivered solution gives small and mid-size businesses access to 3(38) fiduciary oversight and participant-level advice for one fee.

Hightower Signature Wealth adds $1.6B Boston-area firm
Hightower Signature Wealth adds $1.6B Boston-area firm

Boston Hill Advisors joins Hightower's national platform as the mega-RIA's latest Massachusetts move drives HTSW closer to its $50 billion target for 2026.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income