Mutual funds – a common investment for employee benefit plans

Most 401(k) plans offer their participants a variety of investments and most of these line ups include mutual funds. The risk associated with mutual funds range from conservative to aggressive. They are comprised of pools of money collected from investors that is then invested in a variety of securities (such as stocks, bonds or cash). …

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401(k) plan options for eligibility requirements

During the 401(k) plan design process, there are lots of things to consider. One of them is the eligibility requirements to participate in the plan. Who is allowed to participate in the plan? This can have a dramatic effect on the plan’s cost, ease of administration and perceived value to prospective employees. The eligibility requirements …

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What to do with your deceased spouse’s IRA

If your spouse has recently deceased, what should be done with their IRA? To start, you have two options not available to other beneficiaries. Roll the decedent’s IRA into an IRA established in your name (spousal rollover) Elect to treat the decedent’s IRA as your own IRA (spousal election) Don’t miss: Balancing investments in times …

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Big changes in IRAs – Expanding the definition of earned income

Recently, Congress passed and the President signed the SECURE Act “Setting Every Community Up for Retirement Enhancement”. This new legislation is the first major retirement reform since the Pension Protection Act in 2006. Many changes in the SECURE Act affect both 401k’s and IRA’s but one of the sometimes overlooked changes has to do with …

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IRA contributions and IRA distributions to charity changed under new tax law

Before 2019’s SECURE Act, you could not contribute to a traditional IRA account in the year you turned 70 1/2 and later years. Under the new SECURE Act, this age limit is repealed for contributions starting in 2020. Don’t miss: SECURE Act changes deadline for retirement plan As life expectancy for the average person increases, …

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Small employer automatic enrollment credit

As a business owner, you are probably well-aware that offering a 401(k) plan to your employees has its advantages—ease of talent acquisition, increased retention rates and high morale. But if you happen to be a small business employer, providing a retirement plan to employees may not seem entirely feasible without credit. Start-up costs are often …

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Required minimum distribution age raised with SECURE Act

As many know, the rule prior to the new SECURE Act stated a required minimum distribution (RMDs) from traditional IRA or other qualified retirement plans was required to be taken by April 1 following the year a taxpayer reached the age of 70 ½. This rule is still in place for people who turned 70 …

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SECURE act changes deadline for retirement plans

Near the end of 2019, congress passed the Setting Every Community Up for Retirement Enhancement Act, or as most people call it, the SECURE Act. If you are a frequent reader of our blogs, you’ve probably noticed that we’ve had quite a few about the SECURE Act and all of the changes it made going …

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Penalty Free Retirement Account Withdrawals

For anyone who has a child, they know sometimes the pain doesn’t end at the point of delivery.  Don’t get me wrong. Children are a blessing, but with them come sleepless nights, diaper changes and yes, financial pressures that could stem from retirement account withdrawals. A study by Health Affairs found that for the average …

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Accounting for estimates

Not every financial statement item is able to be precisely measured. Often, your company will have to make a best-educated guess to account for items that are not able to be specifically determined. This is where accounting for estimates comes into play. Don’t miss: The future of auditing with artificial intelligence  Auditing standards define an …

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