Accountants
Set Up Your Clients’ Cross-Tested Plans Before Year-End
Help Your More Highly Compensated And/Or Older Clients Maximize Savings on Taxes AND For Retirement
Cross-tested plans offer the ability to create multiple benefit levels within a retirement plan to meet the overall needs of an organization. This can be an important consideration when a plan seeks to allow the business owner to allocate a higher contribution rate to the owner and other highly compensated employees, while still providing a benefit to the rest of the employees. Doing so enables older workers to stay on track for retirement by allowing higher contribution amounts for older/HCE without affecting rates contributed to other employees.
Here’s an example of how it works: Read More »
The Time Is Now!
Remind Your Clients To Defer The Maximum To Their 401(k) Plans
To help your clients realize their biggest possible tax savings (as well as to increase their retirement savings), there is no better time than the present to remind them that they should maximize their deferrals to their 401(k) plans. December 31, 2022 is the last day to do so for 2022, so there’s no time to delay! Deferral limits for 2022 are $20,500 with an additional $6,500 for those aged 50 or older.
Why Small Businesses Should Always Have A Current Valuation
Most small business owners don’t do the math on their most valuable asset, a decision which could prove costly. Here’s why, via Cheryl Winokur Munk.
Funding Due Date Approaching!
For Your Clients On Extension
In order for a contribution allocated in 2021 to qualify as a 2021 tax deduction, an employer must typically fund the contribution by the due date of its tax return, including extensions.
However, even though some employers may be able to extend the filing of their return until October 15, 2022 if they sponsor Defined Benefit Plans, including Cash Balance Plans, there is a Statutory Funding deadline of September 15, 2022.
Don’t hesitate to reach out if you have questions.
Yes, We Are In The Dog Days Of Summer, But It’s Time To Think About The October 1st Safe Harbor Deadline!
Make Sure Your Clients Don’t Miss Out On Significant Tax Savings!
Act now to establish the plan by the October 1st deadline!
While we’re deep in the summer heat, Fall is just around the corner, and so are the Safe Harbor Plan deadlines. Safe Harbor 401(k) plans are the most popular type of 401(k) used by small businesses today because they offer small business owners many advantages.
If they’re still on the fence about starting a safe harbor 401(k) plan, share these benefits with your clients: Read More »
Who Is a Long-Term, Part-Time Employee?
Your Clients With 401(k) Plans Will Need to Know
Historically, 401(k) plans could exclude individuals who worked less than 1,000 hours in the plan year. However, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, in its effort to expand access to employer retirement plans, introduced the concept of a “long-term, part-time employee.” Starting in 2021, plans need to consider these employees for eligibility and vesting purposes. Read More »
