Retirement Account Catch-Up Contributions Can Add Up
Are you age 50 or older? If so, you can currently make extra “catch-up” contributions to certain types of tax-favored retirement accounts. Over time, these contributions can make a significant difference in your retirement-age wealth. What about tax reform? After President Trump and other lawmakers stated that they wouldn’t tinker with retirement plan contribution tax breaks,…
Survivors: Family Businesses That Last
The phrase “family business” makes some people automatically think of mom-and-pop stores in small towns. But as you probably know, family-operated companies include everything from husband-and-wife sole proprietorships to companies like Mars Inc., the candy bar and food product company that employs about 70,000 people. For a perspective of just where family business fits into the…
401k Administration: Hardship Distributions and Terminating a Plan
Question: Our company terminated its calendar-year 401(k) plan effective December 31, 2016, but will not make final plan distributions until the IRS issues a favorable determination on the plan’s termination. Should we file a final Form 5500 for the plan year in which the termination was effective (2016), or the plan year in which the final…
Handling Interest Expense on Loans to Inject Capital
There are instances when you can write off interest on personal loans used for business purposes, such as injecting capital into an S corporation, multi-member LLC, partnership or C corporation. But keep in mind that interest expenses must be classified into one of four categories (see box at the bottom of this article for details). Different…
Defaulting on Retirement Plan Loans Causes Taxable Distributions
Want to borrow money from your retirement plan? Not so fast. Retirement plan loans can be a viable way to get money in a crunch, but you need to follow the rules about repaying them. If you don’t, it could lead to unfavorable tax consequences, as two taxpayers recently learned the hard way in U.S. Tax…
Design Health Care FSAs to Be Cost-Effective
While health care flexible spending accounts (FSAs) offer tax-saving benefits to employees, they also can provide tremendous advantages to the employers sponsoring them. Salary-reduction contributions which employees make to an FSA are not subject to Social Security and Medicare (FICA) taxes. Thus, employers save the 7.65% FICA contribution on the dollars an employee contributes to an…
Creating an Effective Mission Statement
Many organizations spend a lot of time and money creating mission statements, to highlight their work and align employees around a common vision. But the fact is that many mission statements fail, becoming nothing more than a wall ornament or a bunch of words tucked into a seldom-read company handbook. For the most part, the reasons…
Fight Back Against Internal Fraud
Internal fraud drains approximately $4 trillion annually from global businesses, according to recent estimates, and not-for-profit organizations are not exempt. The median loss suffered by a not-for-profit group victimized by fraud was $90,000, according to the 2018 Report to the Nations by the Association of Certified Fraud Examiners (ACFE). Although organizations can experience pilferage from…
Defaulting on Retirement Plan Loans Causes Taxable Distributions
Want to borrow money from your retirement plan? Not so fast. Retirement plan loans can be a viable way to get money in a crunch, but you need to follow the rules about repaying them. If you don’t, it could lead to unfavorable tax consequences, as two taxpayers recently learned the hard way in U.S. Tax…
Forward Pricing Cost Proposals
Layers Of Checklists: U.S. government officials are adamant that cost proposals be prepared following federal solicitation requirements and they may reject bids they find inadequate. Tips Use the U.S. Government forward pricing checklist to prepare your own, tailored to specific jobs. Expand your checklist to incorporate unique aspects, nuances and internal standards and approaches. Identify the individuals…