Controlled Groups Rules for Qualified Retirement Plans

Introduction One of the most common issues that arise when CPAs are counseling clients regarding retirement plans is how the controlled group rules apply in qualified plan world. The controlled group rules ensure that a qualified retirement plan (or plans) maintained by an employer (or group of related employers) does not discriminate in favor of highly … Read more

Taxation of CARES Act Distributions

If an individual received a 2020 1099-R, how does the CPA or individual know if the distribution reported on the 1099-R qualifies for special tax treatment under the CARES Act. The burden is on the taxpayer and his CPA to make the determination and to document their compliance with the CARES Act requirements. 1099-R Reporting There … Read more

New Planning Opportunities for 2020 Thanks to The SECURE Act

For self-employed individuals and business owners Effective for the 2020 tax year, The SECURE Act ended the deadline to adopt profit sharing plans, defined benefit plans and cash balance plans to the business’ tax filing deadline including extensions. This is huge! Typically, business owners don’t realize they need an additional tax deduction until completing their … Read more

Start-up plan tax credit

What did the SECURE Act change about the start-up tax credit? Since 2002 a federal income tax credit has been available for starting a retirement plan. All the SECURE Act changed was the amount of the start-up credit for tax years after 2019.  So everything else stays the same. Discussed separately, the SECURE Act also … Read more

Auto-enrollment tax credit

What is the SECURE Act auto-enrollment tax credit? A $500 tax credit has been created for small employers who add an EACA to their retirement plan. The credit is available for 3 taxable years. What are the requirements to be an EACA? EACA stands for “Eligible Automatic Contribution Arrangement”.  The requirements to be an EACA … Read more

Are employer retirement contributions made during the PPP window forgivable?

Subject to limits on self-employed individuals and owner-employees, Nova believes that employer contributions made during the PPP window are forgivable. This would appear to apply to a wide variety of employer retirement contributions including matching, profit sharing, defined benefit and cash balance contributions. It is also possible this would apply to both the 2019 and … Read more

Nova 401(k) Associates acquires Pension Benefit Administrators

HOUSTON, TX, August 1, 2019 -Nova 401(k) Associates today announced the acquisition of Houston-based employee benefit consulting firm Pension Benefit Administrators (PBA).  This represents their third strategic acquisition. PBA, originally incorporated in 1974, has a team of seasoned pension professionals who average in excess of 20 years of experience and are led by Mike Vickery … Read more