News for CPAs

Roth assets are becoming more and more essential to a successful retirement savings strategy. Concerns about rising tax rates and legislative changes (ex. SECURE Act eliminating the stretch IRA) are two important drivers. Let’s start with the basics of “Why Roth?”  Contributions are after-tax Tax free growth of principal and earnings Tax free withdrawals*  *after satisfying … Read more

The American Rescue Plan Act of 2021 (‘ARPA’) contains a couple of provisions to help cash-strapped sponsors of defined benefit/cash balance (‘DB/CB’) plans. This relief probably won’t help a large number of your clients. However, if you have a client who is having difficulty making their required 2020 DB/CB contribution or missed a required contribution … Read more

What is the auto-enrollment tax credit? $500 per year, for a maximum of $1,500 over 3 years This auto-enrollment tax credit is in addition to any startup plan tax credits, as well as any available deductions for employer contributions The employer does not need to have to expenses associated with adding the auto-enrollment feature to … Read more

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

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