Is There A Target On That Plan’s Back?

June 2, 2021 | posted in: Accountants | by

The IRS Announces New Audit Focus on Solo 401(K) Plans

If you have clients whose businesses sponsor a solo 401(k) plan, it may be in the crosshairs of the Internal Revenue Service. The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives for fiscal year 2021. In its web posting announcing the initiative, TE/GE states: “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations.” Read more from the IRS here.
Some common pitfalls to be aware of may include:   Read More  »

Important Annual Plan Dates To Remember!

June 2, 2021 | posted in: Accountants | by

Deadlines and Explanations of Key Events for Qualified 401(k) and Defined Contribution Plans

Let Us Help You Shine With Your Clients!
There are many important requirements for qualified 401(k) and defined contribution plans that occur either during the calendar year or during the plan year. Some examples include participant statements, compliance testing and remittance of plan contributions.
We are providing you with the attached chart which, although not intended to be exhaustive, includes the key annual events which must occur for compliance over the course of the plan year or the calendar year. (For off-calendar year plans the deadlines should be determined accordingly based on the time frames described in the chart.)
There is a lot to monitor and manage, as missing any of these deadlines and/or events can cause headaches for you and your clients. We encourage you to reach out to us so we can help you and your clients navigate these deadlines and requirements, thereby providing your clients with the best possible service.
Download your copy here.

Important Reminders for 2020 Year End Legal Issues

December 8, 2020 | posted in: Accountants | by

From Our Colleagues at Frye & Vazquez, P.L.
As the year winds down, there is a lot to think about. Our colleagues at Frye & Vazquez, P.L. prepared this list to discuss with their clients, and you might find it helpful to discuss with yours.

Gifting for 2020
Estate tax exemption changes that may affect you
Personal and small business year-end planning issues with 12/31/20 deadlines

Click here for details.

Help Supercharge Your Clients’ Tax Savings For 2020!

December 8, 2020 | posted in: Accountants | by

And Help Them Maximize Their Retirement Savings, Too!
Make Sure Your Clients Have Maximized their 401(k) Deferrals for 2020
As the year draws to a close, it is a great time to remind your clients to maximize their 401(k) deferrals. For this year, plan participants can contribute up to $19,500; if 50 or over they can contribute an additional $6,500.
Let us help your client establish a tax-deductible qualified retirement plan.
At Frye Retirement Planning, we use state-of-the-art design techniques to maximize owner/key employee benefits and lower overall plan costs.

$57,000 allocation for each owner in 401(k)/profit sharing plans. If 50 or older, up to $63,500 can be funded into 401(k).
Potentially up to $300,000 max contributions for small business owners in Cash Balance/Defined Benefit plans (depends on age and service).
Uni-K plan to maximize deductions for self-employed, owner-only, partners or owner-spouse business owners with low W-2 wages (i.e. deduct $29,500 with only $40,000 in wages; if 50 or older, deduction increases to $36,000).

Don’t delay – contact our office now to learn how we can help maximize your clients’ tax savings.

Are Your Clients Thinking About Starting a 401(k)?

November 10, 2020 | posted in: Accountants | by

Need To Act Now For a 1/1/21 Effective Date!
Now is the time to act if your clients are thinking about establishing a 401(k) plan to save on their taxes, and to offer a benefit their employees.
Most companies run on a calendar year basis, and typically, employee benefits start on the first of the year. Aligning the 401(K) start date with other benefits and the tax year will make recordkeeping easier for you and your client.   Read More  »