Exam Alert: IRS requires broker-dealers and mutual funds to report cost basis of stocks
Effective January 1, 2011, the IRS requires that when broker-dealers and mutual funds purchase stocks, the cost basis of the stocks must be reported to the IRS and to investors. In 2011, this reporting requirement only applies to most stocks, while in 2012 and beyond, the requirement will apply to all stocks. In 2011, the rule will not apply to mutual fund shares and shares purchased via dividend reinvestment plans. Relevant to the Series 6, Series 7, Series 62, Series 65, and Series 66 exams.
IRS news release: http://www.irs.gov/newsroom/article/0,,id=228907,00.html
Analysis by the Securities Technology Monitor: http://www.securitiestechnologymonitor.com/photo_gallery/1_36/27400-1.html
IRS Pension Plan Limits for 2010
Deflation notwithstanding, the IRS has announced that in 2010 the maximum contribution to a 401 (k) and other defined contribution plans will stay the same. Defined benefit limits will also stay the same. See IRS announcement