Accountants
October 1st Tax Savings Deadline!
Don’t Let Your Clients Miss the 2021 401(k) Safe Harbor Plan Deadline
The 401(k) Safe Harbor Plan allows your clients who have one or more employees to:
Defer taxes on up to $19,500 of their income, or up to $26,000 if age 50 or older, regardless of employee participation
Receive a safe harbor match/non-elective contribution and also get a tax deduction
Take advantage of SECURE Act Tax Credits – up to $5,500 per year for putting this benefit in place
Avoid the hassle of IRS non-discrimination testing
Other advantages include:
Cost-effective benefit for employees to save for their retirement
Can allow additional tax deductible discretionary profit sharing contribution
Roth investing option for tax-free growth, which is not subject to income limits like other plans
Don’t delay! Contact us now to learn how we can help maximize your clients’ tax savings before the October 1st deadline.
Is There A Target On That Plan’s Back?
The IRS Announces New Audit Focus on Solo 401(K) Plans
If you have clients whose businesses sponsor a solo 401(k) plan, it may be in the crosshairs of the Internal Revenue Service. The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives for fiscal year 2021. In its web posting announcing the initiative, TE/GE states: “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations.” Read more from the IRS here.
Some common pitfalls to be aware of may include: Read More »
Important Annual Plan Dates To Remember!
Deadlines and Explanations of Key Events for Qualified 401(k) and Defined Contribution Plans
Let Us Help You Shine With Your Clients!
There are many important requirements for qualified 401(k) and defined contribution plans that occur either during the calendar year or during the plan year. Some examples include participant statements, compliance testing and remittance of plan contributions.
We are providing you with the attached chart which, although not intended to be exhaustive, includes the key annual events which must occur for compliance over the course of the plan year or the calendar year. (For off-calendar year plans the deadlines should be determined accordingly based on the time frames described in the chart.)
There is a lot to monitor and manage, as missing any of these deadlines and/or events can cause headaches for you and your clients. We encourage you to reach out to us so we can help you and your clients navigate these deadlines and requirements, thereby providing your clients with the best possible service.
Download your copy here.
Important Reminders for 2020 Year End Legal Issues
From Our Colleagues at Frye & Vazquez, P.L.
As the year winds down, there is a lot to think about. Our colleagues at Frye & Vazquez, P.L. prepared this list to discuss with their clients, and you might find it helpful to discuss with yours.
Gifting for 2020
Estate tax exemption changes that may affect you
Personal and small business year-end planning issues with 12/31/20 deadlines
Help Supercharge Your Clients’ Tax Savings For 2020!
And Help Them Maximize Their Retirement Savings, Too!
Make Sure Your Clients Have Maximized their 401(k) Deferrals for 2020
As the year draws to a close, it is a great time to remind your clients to maximize their 401(k) deferrals. For this year, plan participants can contribute up to $19,500; if 50 or over they can contribute an additional $6,500.
Let us help your client establish a tax-deductible qualified retirement plan.
At Frye Retirement Planning, we use state-of-the-art design techniques to maximize owner/key employee benefits and lower overall plan costs.
$57,000 allocation for each owner in 401(k)/profit sharing plans. If 50 or older, up to $63,500 can be funded into 401(k).
Potentially up to $300,000 max contributions for small business owners in Cash Balance/Defined Benefit plans (depends on age and service).
Uni-K plan to maximize deductions for self-employed, owner-only, partners or owner-spouse business owners with low W-2 wages (i.e. deduct $29,500 with only $40,000 in wages; if 50 or older, deduction increases to $36,000).
Don’t delay – contact our office now to learn how we can help maximize your clients’ tax savings.
