Who Is a Long-Term, Part-Time Employee?
Business Owners 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 »
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 »
Tax Credits For Your Clients
There’s never been a better time for your small business clients to start up a retirement plan for their employees and for themselves.
Under the SECURE Act the setup and administration costs paid by a small business employer can now be basically cut in half for the first three years. How is that possible? The SECURE Act increased the small employer tax credit for new plans up to $5000 per year for the first three plan years (more if auto-enroll and auto-deferral are added). Read More »
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 the SECURE Act Going To Get Even Stronger?
Waiting for SECURE Act 2.0
Almost a year and a half after the SECURE Act (Setting Every Community Up for Retirement Enhancement) impacted the retirement planning world, a second bill, the Securing a Strong Retirement Act of 2021 was recently approved by the House Ways and Means Committee. This new bill expands upon the original and tweaks the changes regarding contributing and withdrawing from retirement savings vehicles.
Expected to pass in 2021 or 2022, it aims to encourage Americans to save more for retirement, in part by making that process easier. Read More »
Congress Enacted Major Retirement Plan Legislation – Here’s What You Need To Know About the SECURE Act
The SECURE Act is the most significant retirement plan legislation in 13 years, and many of its provsions are effective in 2020. It affects employers who currently sponsor retirement plans, and encourages those without plans to set them up. It also impacts plan participants, IRA holders and their beneficiaries, and expands the uses of 529 college savings plans. Read More »
