Best Practices for 403(b) Plans

"The primary problem is that 403(b) investment costs are extremely high as compared to the 401(k) market, where the plan sponsor typically uses one provider for the plan." Click here to learn more about the best practices for 403(b) Plans.

Source: International Foundation of Employee Benefit Plans

Economics, FYIRichard M. Todd
Innovest's NonProfit Client Spotlight - Delta Dental of Colorado Foundation

Did you know that nearly half of Colorado’s children have experienced cavities by the time they start kindergarten? This startling statistic drives Delta Dental of Colorado Foundation’s work in the community. The foundation works to eradicate childhood tooth decay through a variety of initiatives and grants. Their work includes integration of dental care into medical organizations as well as educating both medical and dental students.

The foundation has also developed creative methods to achieve their goals. They pioneered mini-grants in 2015 to award eleven organizations grants ranging from $1,000 - $15,000 per grant to spur oral health innovation throughout Colorado. Partnering with the company in 2016, they awarded five nearly $50,000 innovation grants. Three supported the development of technology from bacteria-fighting retainers to regenerative materials for teeth.

Their work also includes educational programs for children and pregnant women. This includes the bilingual “Cavities Get Around” campaign to emphasize the importance of baby teeth and to raise awareness of the impact sugary drinks – particularly juice – have on children’s oral health. The campaign provides resources to primarily low-income, vulnerable families in Colorado.

Innovest is proud to provide consulting services to Delta Dental of Colorado Foundation!



Senate Releases Draft Tax Reform Plan

"On November 9, the Senate Finance Committee released its changes to the Tax Cuts and Jobs Acts, the proposed tax reform legislation that the House Ways and Means Committee unveiled on November 2." Click here to learn more about what it could mean for you and your family.

Source: Northern Trust

Richard M. Todd
Senate Finance Committee Tax Proposal Takes Aim at Governmental 457 Plan Features

On Thursday, November 9, legislation to overhaul the U.S. tax system moved forward in the House and was introduced in the Senate. While the House version largely left governmental defined contribution plans alone, the Senate version would repeal some unique features of 457 plans, including the exemption from the 10% penalty for early disbursements. Click here to read the NAGDCA Alert.  

Investment Returns Can Pay Big Dividends for Foundations

The Gates Foundation has increased in profit and with partnering alongside Mr. Buffett has $25.7 billion in investment gains. The writer states, "Unlike philanthropic success, investment success is much more straightforward to measure. The Gates Foundation ranked in the top quartile of the FoundationMark universe for the 10-year period, and outperformed the average foundation by over two percent per year." Click here to learn more information. 

Source: CEP

FYIRichard M. Todd
Republican Tax Bill Summary

House Republicans today released the details of their plans to overhaul the U.S. tax code. (See the full House bill and House summary. ) WaterStone has put together a quick a rundown of key provisions in the proposal that we thought might interest you:


  • Chops the corporate tax rate from 35% to 20% permanently, not temporarily as was earlier considered.
  • Businesses would lose the ability to deduct certain executive compensation above $1 million, which they can now do for performance-based pay.
  • Tax-exempt bonds could no longer be used to build professional sports stadiums.
  • Sets a top 25% rate for pass-through businesses such as S corporations and partnerships. The plan includes complicated guardrails that limit people from turning what would otherwise be wage income taxed at up to 39.6% into business income taxed at a lower rate.
  • New limits on corporate interest deductions, which would be capped at 30% of earnings before interest, taxes, depreciation and amortization, which is a measure of cash flow. Real-estate firms and small businesses would be exempt from that limit.
  • Creates a new one-time tax on overseas profits set at 12% for cash holdings and 5% for illiquid holdings, a provision meant to force companies to repatriate overseas profits. Creates a new 10% tax on U.S. companies’ high-profit foreign subsidiaries, calculated on a global basis, but active overseas profits wouldn’t otherwise be taxed.



  • Reduces seven individual income tax brackets to four at 12%, 25%, 35% and 39.6%.
  • Top tax bracket set for married couples earning $1,000,000 per year and individuals earning %$500,000. Bottom tax bracket extends up to $90,000 for couples and $45,000 for individuals.
  • The proposal doesn’t change the top tax rates on capital gains and dividend income.
  • The bill would preserve head-of-household filing status, often used by single parents. The standard deduction for that group is midway between individuals and married couples.
  • Nearly doubles individual standard deduction to $24,400 for married couples and $12,200 for singles in 2018.
  • Increases child tax credit from $1,000 in 2017 to $1,600 plus $300 for each taxpayer, spouse and non-child dependents.
  • Places new limit on home mortgage-interest deduction at loans up to $500,000, down from $1,000,000, but existing loans would be grandfathered.
  • The estate-tax exemption, set for $5.6 million per person and $11.2 million per married couple, would double immediately. The tax would be repealed starting in 2024.
  • Keeps 401(k) existing plan rules largely intact.
  • Repeals the alternative minimum tax
  • Repeals an itemized deduction for medical expenses.
  • Repeals the tax credit for adoption.
  • Repeals the deduction for student-loan interest.

Source: Waterstone

Have MLP and Midstream Headwinds Shifted to Tailwinds?

"The midstream sector is in a position to benefit from several important tailwinds which market sentiment and equity valuations appear to underestimate. Further, we believe that as the broader energy markets continue to normalize, even at today’s commodity prices, these tailwinds may begin to attract greater investor interest and aid in the sector’s recovery." Click here to read more information about the midstream increasing business growth.

Source: OppenheimerFunds