Products October 18, 2018

Redtail Technology Adds AI to CRM System

The system analyzes emails, notes and text messages to predict client needs.

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Redtail Technology has added artificial intelligence (AI) to its customer relationship management (CRM) system. The system analyzes emails, notes and text messages to predict client needs.

Specifically, the CRM system looks for client sentiment by identifying and categorizing their opinions. This will allow advisers to mitigate any issues that arise.

It also looks for key phrases and sorts them into relevant categories. Furthermore it looks for topics, brands, products or goals that are gaining or losing traction with client.

“Given the volume of data typically required for a machine to start learning, this level of artificial intelligence has only been available at large institutions, until now,” says Brian McLaughlin, CEO of Redtail. “What’s most exciting about this rollout is that Redtail has democratized access to AI to create a more intentional, informative process by which advisers at any firm can interact with their clients. Think of the endless possibilities that exist in our industry to extract information that gets to the heart of who clients are, and what they want.”

This rollout comes a year after Redtail launched Speak, a compliance-approved platform for advisers to text message with clients.

Compliance October 17, 2018

IRS to Focus on Retirement Plan Distributions and 403(b) Plan Rules in 2019

A Program Letter lists compliance strategies for the agency for next year.

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A Program Letter from the Tax Exempt & Government Entities (TE/GE) Business Operating Division of the IRS offers a heads up to what retirement plan sponsors can expect from the IRS in 2019.

Strategies approved for the Employee Plans (EP) division include:

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  • Distributions: verify that plans are following correct distribution processes and procedures and that participants are receiving correct distribution amounts;
  • Form 5500, Annual Return/Report of Employee Benefit Plan, and Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan, stop filers: contact employers sponsoring plans that did not file one or more required returns;
  • IRC Section 403(b)/457 plans: examine 403(b) plans for universal availability, excessive contributions and proper use of catch-up contributions under IRC Section 414(v); and 457(b) plans for excessive contributions and proper use of the special three-year catch-up contribution rule;
  • Small plans with large assets: determine whether smaller plans with trusts holding large assets have taken deductions on Form 1120, U.S. Corporation Income Tax Return, exceeding IRC Section 404 limitations;
  • Simplified Employee Pension (SEP) plans: determine whether accounts violated maximum participant rules, failed to meet statutory and matched employer contribution requirements, and/or failed to meet IRC Section 416(i)(6) top-heavy requirements; and
  • Terminated cash balance plans: examine terminated plans with cash balance features that may have exceeded IRC Section 415 limitations or generated a reversion which is subject to an excise tax.

Strategies approved specifically for tax-exempt organizations include:

  • Previous for-profit: focus on organizations formerly operated as for-profit entities prior to their conversion to Internal Revenue Code (IRC) Section 501(c)(3) organizations;
  • Self-dealing by private foundations: focus on organizations with loans to disqualified persons;
  • Early retirement incentive plans: determine whether federal, state or local governmental entities that provide cash (and other) options to employees as an incentive for early retirement have applied proper tax treatment to these benefits; and
  • Worker classification (misclassified workers): determine whether misclassified workers result in incorrectly treating employees as independent contractors.
“As more issues are developed and approved, those with a higher priority may potentially replace Compliance Strategies currently set forth in this document,” the Program Letter states.

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