Looking to inflate your charitable contributions and deflate your taxable income? IRA owners aged 70 ½ and older get a bump to the maximum Qualified Charitable Distribution (QCD) in 2024. Charitably minded individuals looking to satisfy Required Minimum Distribution requirements (RMDs), can now donate up to $105,000 to qualifying…
Part 1 – Eligible Compensation Part 2 – De Minimis Balances of Terminated Employees Part 3: Maintaining Documentation Common Finding There are several documents that Plan Sponsors must retain. Examples include, but are not limited to, enrollment forms, declination forms, change in election forms, management’s approval of…
One of the more exciting provisions of the SECURE 2.0 Act, signed into law December 2022, is the tax-free rollover from a 529 educational savings account into a Roth IRA. This provision became effective in 2024 and will help to reduce or eliminate the problem of having unused funds in…
Read Part 1 Part 2: De Minimis Balances of Terminated Employees Common Finding De Minimis distributions should occur when balances are below a certain threshold, as defined by the Plan document. Most plans have a requirement for balances less than a determined value of $1,000 or $5,000. The maximum…
One of the most beneficial provisions of the Tax Cuts and Jobs Act of 2017 was the introduction of the Qualified Business Income Deduction, commonly referred to as QBID. It became effective January 1, 2018 and is set to expire on December 31, 2025. QBID is a 20% deduction of…
Part 1: Eligible Compensation Common Finding Plans have the ability to define the Plan’s eligible or ineligible compensation. It is vital that those involved in payroll are well aware of these delineations. The Company’s payroll calculations for employee retirement withholdings and employer match or profit-sharing benefit need to agree with…
The IRS allows self-employed taxpayers to deduct certain business meals and entertainment expenses. However, knowing what meals and entertainment expenses are deductible can be pretty confusing. Recent tax laws have changed what businesses are allowed to deduct. The Tax Cuts and Jobs Act of 2017 eliminated the deduction for most…
Under current law, bonus depreciation is limited to 80% of the cost of eligible property placed into service in 2023. As of the date of this publication, there is pending legislation (The Tax Relief for American Families and Workers Act of 2024) which includes a provision that would retroactively change…
The Inflation Reduction Act of 2022 encourages taxpayers to consider switching from gas powered vehicles to electric vehicles by expanding the New Clean Vehicle Credit and introducing the Used Clean Vehicle Credit. Requirements of both credits include purchasing the vehicle from a dealer, using the vehicle primarily within the United…
There were many new and improved tax credits with the passing of the Inflation Reduction Act of 2022, and most of these improvements were effective starting in 2023. So, as you get ready to file for the 2023 tax season, think back on the year to see if any of…
