Accountants
Setting Up A Solo 401(k)?
There Are REAL Benefits To Establishing It Before 12/31/21!
The Setting Every Community Up for Retirement Enhancement (SECURE) Act delayed the deadline for establishing a qualified retirement plan for a particular tax year. Businesses now have until their tax return due date, plus extensions, to adopt a plan. Nonetheless, generally speaking, the delay only applies to the ability to make employer contributions (e.g., a profit-sharing contribution) for the prior year – NOT employee salary deferrals – thereby limiting its benefit to the business owner. Read More »
No Time Like The Present!
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), now is a great time to remind them that they should maximize their deferrals to their 401(k) plans. December 31, 2021 is the last day to do so for 2021, so there’s no time to delay! Deferral limits for 2021 are $19,500 with an additional $6,500 for those aged 50 or older.
Now’s The Time For An Upgrade!
Your Clients May Have Outgrown Their Simple IRAs…Here’s How To Increase Their Deductions, But You Must Act Before The Deadlines
Your clients may have started their businesses with a SIMPLE IRA but most businesses quickly outgrow them and find they need to upgrade to a 401(k) profit sharing plan. Replacing a SIMPLE plan with a 401(k) plan is easy, but you must start the process well before the 12/31/21 deadline. Upgrading your clients to a 401(k) plan offers them several benefits including: Read More »
Required Minimum Distributions Are Back
Here’s What You Need To Know To Guide Your Clients!
Required minimum distributions (RMDs) are back in 2021 after a brief break in 2020 initiated by the CARES Act. Between the suspension of RMDs in 2020 and the rule changes in the SECURE Act, which passed in 2019, we want to remind you of some key points to keep in mind for your clients’ RMDs: Read More »
Cross-Tested Plans
Help Your Older and More Highly Compensated Clients Save On Taxes AND Save More For Retirement – But The Time To Act Is Now!
Many small business owners start 401(k) plans to benefit their hard-working employees. Sometimes, however, a basic 401(k) plan which treats every employee the same – including the owner – can make it challenging for the owner to stay on track for retirement. A cross-tested plan allows business owners to allocate a higher contribution rate to the owners and other highly compensated employees while also providing a benefit to the rest of the employees. Here’s an example of how it might work: Read More »
REMINDER: Funding Due Date Approaching!
For Your Clients On Extension
In order for a contribution allocated in 2020 to qualify as a 2020 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, 2021 if they sponsor Defined Benefit Plans, including Cash Balance Plans, there is a Statutory Funding deadline of September 15, 2021.
