Small business owners have several options for their retirement plans. Two tax-smart and flexible alternatives are SIMPLE IRAs and solo 401(k) plans. If you're eligible for these types of plans and you want to maximize your tax-deferred savings, which makes more sense? Here's a series of side-by-side comparisons to help you decide.Eligibility Requirements SIMPLE IRASolo 401(k)SIMPLE IRAs … [Read more...] about SIMPLE IRA vs. Solo 401(k): Which Is Right for Your Small Business?
Important Reasons to Review and Update Your Estate Plan Let’s assume you are among the approximately 30% of adults who have done the prudent thing and established your Estate Plan. Perhaps you simply created a Will. Have you had it professionally reviewed in recent years? Make sure your plan is still the most suitable for your current estate and goals? Alternatively, do you have a Living Trust … [Read more...] about Five Reasons to Update Your Estate Plan
The IRS announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The IRS is generally waiving the penalty for any taxpayer who paid at least 85% of their total tax liability during the year through federal income tax withholding, quarterly estimated … [Read more...] about 2018 Tax Payments Fall Short? You May Be Eligible for Penalty Relief
Over the years, real estate has proven to be a lucrative investment for many households. And, in some parts of the country, current market values have surpassed levels seen prior to the 2008 financial crisis. If your principal residence has appreciated significantly in value, you may be subject to capital gains tax when it's sold. If your gain will be too big to be sheltered by the … [Read more...] about How to Combine Home Sale Gain Exclusion with a Like-Kind Exchange
Health care is a top concern for many Americans, especially people who are age 65 and older. While these individuals qualify for basic Medicare insurance, they may need to pay additional premiums to get the level of coverage they desire. Those premiums can add up to a substantial annual sum, especially if you're married and both you and your spouse are paying them. But the silver lining is … [Read more...] about Could Medicare Premiums Lower Your Taxes?
In estate planning involving spouses there may be issues surrounding how to deal with separate property acquired prior to marriage or as a result of inheritance. As part of your estate planning consultations with your attorney, you may be asked whether you wish any particular property or financial assets you currently consider to be your sole and separate property to remain your sole and … [Read more...] about Deciding Whether to Convert Separate Property to Community Property
Have you ever kept a New Year's resolution for the entire year? Every January, millions of Americans make promises to eat less, exercise more and save for the future. But most resolutions are forgotten by spring. However, there are ten promises that relate to your financial health that you can't afford to abandon. 1. Make a financial plan. Creating a financial plan forces you … [Read more...] about 10 New Year’s Resolutions to Improve Your Personal Financial Position
Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) must implement new revenue recognition rules in fiscal years that start after December 15, 2018. Are your accounting systems and personnel ready for this fundamental shift in financial reporting? The effects will likely be more far-reaching than expected, based on feedback from public companies that … [Read more...] about Revenue Recognition: New Rules Go Live for Private Companies
Taking steps to defer your individual federal income tax bill is often a good idea. If you expect to be in the same tax bracket in future years, lowering this year's taxable income will postpone your tax bill and give you extra cash to work with until the bill comes due. If your tax rates turn out to be lower in future years, deferring taxable income into those future … [Read more...] about Can You Have Too Much Tax Deferral?
Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018. The following limits will increase for 2019 based on the cost of living: The elective deferral limit for employees participating in 401(k), 403(b) … [Read more...] about IRS Ups the Ante on Retirement Contributions