It would like to receive feedback on the
custodial fee and TAMP exclusions from sales-related compensation as written, as well as on several other items.
Given that Amihud and Goyenko (2013) find that R2 is related to fund characteristics, we examine the existence of differences between management strategies adopted by management companies and insurance companies, controlling for age of the plan, size of the plan, investment by participant, management fee and
custodial fee. Thus, we propose the following model which is similar to that proposed by Amihud and Goyenko (2013):
For example, he says, one ETF fund group has an agreement with a provider to make its fund family available to 401(k) plan participants, but the provider adds a
custodial fee for having the ETFs on its platform.
Lord, Abbett said it was moving to help advisors grow their business by waiving the annual
custodial fee for every new Lord Abbett Ira account opened between January 1 and April 15, 2010.
The rate charged is prime or Libor plus a negotiated margin as well as a per transaction fee from a company like Titan to cover administrative and other related expenses, including the wire fee, overnight deliveries and the
custodial fee.
Many funds also charge a yearly
custodial fee to cover the administrative costs of handling an individual retirement account.
Assume the same simple trust as above, except there are expenses for investment advisory fees and
custodial fees as well.
On top of the management fees there are
custodial fees which are quite high; storage, maintenance, insurance etc.
These factors were mostly offset by higher technology initiative spend and lower
custodial fees.
Treasury Regulations section 1.212 provides for the deduction of investment-related expenses (e.g., investment supervisory services) as itemized deductions on Form 1040 Schedule A, Itemized Deductions, line 23, attributable to taxable investment income (e.g., dividends, interest, capital gains); therefore, these fees for services of investment counsel, as well as
custodial fees, represent deductions from adjusted gross income (AGI).
"If you take five per cent of market cap and
custodial fees thereon of 10-12 basis points, that's a lot at stake," said the source.
You may be able to defer deductions for things like charitable contributions; deductible investment expenses such as investment advisory and
custodial fees; and professional fees like tax planning and preparation, accounting, and legal fees.
