By Anu Joshi, CPA, MST, Principal, Tax & Advisory
In late December of 2022, while most of us were busy with other things, Congress was working on passing a giant omnibus budget bill. The 2023 omnibus bill was signed into law by the President on December 29, 2022. Buried within it was the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022 (SECURE 2.0). It provides new incentives for employers to offer retirement plans to their employees and for employees to participate and improve their retirement security. SECURE 2.0 helps employees and their beneficiaries, owner-employees, small businesses, and retirees, and eases costs, administrative burdens, and penalties for inadvertent mistakes. (more…)
Important changes to retirement plan tax rules are once again moving through Congress. The details are subject to revision and ultimate passage of the proposed new rules is still far from certain. Nevertheless, employers who are planning to introduce new retirement benefits or modify their existing plans should be alert to possible rule changes that could emerge over the coming months. (more…)
With unemployment at its lowest level in decades, many businesses are struggling to retain employees and fill vacancies. An attractive retirement or profit-sharing plan can help meet this challenge while also reducing a company’s tax liability. It can also help company owners accumulate wealth for their own retirement. (more…)
It’s been said repeatedly: Don’t put all your eggs in one basket. Yet many individuals often disregard this saying. And it comes back to haunt them or their heirs at a future date.
If you’ve built up a substantial nest egg over the years, it’s likely you feathered it through various investments. This growth may have been fueled by one or two specific stocks. For instance, if you acquired Amazon or Apple before those stocks took off, you may be sitting on a goldmine. (more…)
As businesses and individuals continue to feel the financial impacts of the COVID-19 pandemic, some taxpayers might be considering tapping into their tax-qualified retirement accounts, either to keep their businesses operating or to meet personal cash needs. Certain provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act made this strategy more accessible for many taxpayers.
Business owners, plan administrators, and individual taxpayers considering such a move should familiarize themselves with the CARES Act’s special rules, as well as the general advantages and disadvantages of using retirement accounts to manage temporary cash shortfalls. (more…)
