Expanding Retirement Plan Options for Small Businesses
A new final rule from the U.S. Department of Labor (DOL) clarifies some of the ins and outs of multiple employer plans (MEPs). These are defined contribution retirement plans — such as 401(k) plans — that are sponsored by an association or employer group on behalf of member employers. Clarifying the Rules Existing DOL rules…
Update on the New Business Interest Expense Limitation
The Tax Cuts and Jobs Act (TCJA) imposes a new limitation on deductions for business interest expense. The IRS recently issued guidance in the form of proposed regulations. The business interest expense limitation is a permanent change for tax years that began in 2018. Thankfully, many businesses are unaffected. Here’s what you need to know….
Is a New Individual Health Plan in Your Future?
First the old news: Under the Affordable Care Act (ACA), employers with at least 50 employees (or full-time equivalents) are required to provide health benefits and pay for a good portion of the cost. And many smaller employers that aren’t required to offer health coverage do so anyway. Why? They may do it to compete…
Helping Your Kids Achieve Future Financial Security
Young adults who start their careers weighed down by college debt have a tough time buying a home or initiating a retirement savings plan. That’s why, in 1996, Congress added Section 529 to the Internal Revenue Code, creating a new tax-advantaged college saving vehicle. More than two decades later, “529 plans” now collectively hold around…
How to Structure a Business Asset Purchase with Taxes in Mind
Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity…
How to Benefit from the Rising Average Age of American Workers
By 2026, nearly one in four workers will be 55 and older. That’s compared to about one in five today, according to the U.S. Bureau of Labor Statistics. So, the proportion of younger workers in the overall labor pool will shrink. Does that mean your business will have to settle for workers that are less…
When to Update Your Estate Plan
Estate planning isn’t just for the rich and famous. Many people mistakenly think that they don’t need an estate plan anymore because of the latest tax law changes. While it’s true that the Tax Cuts and Jobs Act (TCJA) provides generous estate tax relief, even for well-to-do families, the need for estate planning has not…
Three Approaches to Valuing a Business
Most closely held business owners want to know the value of their investments, especially if they are going to sell or gift shares to family members or charities. Valuing a private business is a complex undertaking, however. The only sure way to appraise a business interest is to hire a valuation professional who understands the…