Accountants
Have Clients In Need Of A 2022 Tax Deduction?
A 401k/Safe Harbor Plan Can Help Provide Significant Savings!
Act now to establish the plan by the October 1st deadline! Read More »
Self-Employed? Watch Out for These IRS Audit Red Flags
Being self-employed gives you a lot of latitude, and might also put an audit target on your back. Here are some tips to try to avoid that, via Joy Taylor at Kiplinger.
Stress Busters for Tax Season
Four Ways To Manage Your Stress During This Busy Time Of Year
At the start of another busy season, accountants across the country are bracing for the long weeks, longer hours, and mounting pressure generated by way too much work being squeezed into too few days leading up to the biggest tax deadlines of the year.
The ability to manage stress is an important skill for CPAs, and not just during busy season. Accountancy has long been a high-stakes profession. Ensuring that a client’s books or taxes are in order is a great responsibility.
Here are some tips as you move through this particularly challenging time of year: Read More »
Tax Credits For Your Clients
There’s never been a better time for your small business clients to start up a retirement plan for their employees and for themselves.
Under the SECURE Act the setup and administration costs paid by a small business employer can now be basically cut in half for the first three years. How is that possible? The SECURE Act increased the small employer tax credit for new plans up to $5000 per year for the first three plan years (more if auto-enroll and auto-deferral are added). Read More »
Remind Clients To Remove Excess Salary Deferrals!
And Help Them Avoid ADP/ACP Non-Discrimination Testing For 2022
Excess Salary Deferrals
The total of all salary deferrals a participant is allowed to make to various retirement plans – including 401k, 403b, and SARSEP plans – is $19,500 (plus an additional $6,500 if age 50 or older) for 2021.
Please note that individuals who made salary deferral contributions to two or more retirement plans in 2021 may be most at risk for exceeding the deferral limit. If an individual defers more than this limit for 2021, the excess deferral amount plus earnings must be distributed to participants by April 15th, 2022. Per the IRS (IRC Section 402(g)(1) and Reg. Section 1.402(g)-1(e)(2)), unless excess deferrals are timely distributed, they will be included in a participant’s taxable income for the year contributed, and taxed a second time when the deferrals are ultimately distributed from the plan. The corrective distribution must be made no later than April 15th following the close of the calendar year during which the excess deferral was made. Read More »
Score A Big Tax Break for 2021!
Have You Discussed The Benefits of a Cash Balance Plan with Your Clients?
A qualified retirement plan remains one of the best tax advantaged savings opportunities available to small business owners and their employees. Read More »
