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Roth IRAs offer significant estate planning and financial benefits. If you have a substantial balance in a traditional IRA and are considering converting it to a Roth IRA, there may be no better time than now. The Tax Cuts and Jobs Act (TCJA) reduced individual income tax rates through 2025. By making the conversion now, the TCJA enhances the benefits of a Roth IRA. Estate planning benefits The main difference...
Read moreMany employers operate in locations where employees can bike to work. If you have employees who do so, you might wonder whether you can still reimburse bicycle commuting expenses as a fringe benefit, given the tax law changes in recent years. The short answer is yes, but the tax consequences have changed. Suspended exclusion Before 2018, qualified bicycle commuting expense reimbursements could be excluded from employees’ income and deducted by...
Read moreAccounting software typically sells itself as much more than simple spreadsheet or ledger. The products tend to pride themselves on being comprehensive accounting information systems — depending on the price point, of course. So, is your accounting software living up to the hype? If not, there are a couple of relatively simple steps you can take to improve matters. Train and retrain Many businesses grow frustrated with their accounting software...
Read moreIf you’re getting close to retirement age, you may be wondering if your Social Security benefits are going to be taxed. And if so, how much will you have to pay? https://www.gpkleg.com/income-tax/you-may-have-to-pay-tax-on-social-security-benefits/
Read moreNonqualified deferred compensation (NQDC) plans pay executives or other key employees at some time in the future for services to be currently performed. If your organization offers one or is considering offering one, it’s critical to be aware of the applicable tax rules. Let’s review the basics. How they differ NQDC plans differ from qualified plans, such as 401(k)s, in a variety of ways. First, NQDC plans can favor highly...
Read moreDuring your working days, you pay Social Security tax in the form of withholding from your salary or self-employment tax. And when you start receiving Social Security benefits, you may be surprised to learn that some of the payments may be taxed. If you’re getting close to retirement age, you may be wondering if your benefits are going to be taxed. And if so, how much will you have to...
Read moreSmall businesses may find it beneficial to barter for goods and services instead of paying cash for them. If your business engages in bartering, be aware that the fair market value of goods that you receive in bartering is taxable income. And if you exchange services with another business, the transaction results in taxable income for both parties. Income is also realized if services are exchanged for property. For example,...
Read moreWhen planning your estate, you’re likely focused on major assets, such as real estate, investments and retirement plans. But it’s also important to “sweat the small stuff” — your tangible personal property. Examples include jewelry, antiques and photographs. These personal items — which often have modest monetary value but significant sentimental value — may be more difficult to deal with, and more likely to result in disputes, than big-ticket items....
Read moreImagine giving your company’s retirement plan a report card. Would it earn straight A’s in preparing your participants for their golden years? Or is it more of a C student who could really use some extra help after school? Benchmarking can tell you. Mind the basics More than likely, you already use certain criteria to benchmark your plan’s performance using traditional measures such as: Fund investment performance relative to a...
Read moreBy now, most employers have read up on, hired and gotten to know Millennials. Well, guess what? A whole new demographic is here: Generation Z. Whereas Millennials are generally those who came of age around the Millennium, Gen Z are typically regarded as those born just before, on or relatively soon after the year 2000. With every new generation, there’s an element of rebellion against the attitudes, lifestyles and tastes...
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