2015: New Rule for After-Tax Contributions to Your Qualified Retirement Plan

Will a tax incentive motivate you to save more? The reality for most is a resounding, YES. If this sounds like you, you may be interested to learn about a new rule regarding after-tax contributions that may affect your 401(k) Plan in 2015. A recent ruling by the IRS may give many small business owners and high wage earners incentive to contribute more to 401(k) plans.  Beginning in 2015, eligible employees will be allowed to shift after-tax 401(k) contributions directly to a Roth IRA upon separation from service.  For individuals who can easily exceed 401(k) pretax contribution limits or income limits for Roth IRA contributions, this means there is a new option for additional retirement savings and the potential for substantial tax savings during retirement. The Roth IRA Advantage In 2015, couples earning $193,000 or more and individuals earning $131,000 or more are not eligible to directly contribute to a Roth IRA.  For couples and individuals whose earnings are under these thresholds, contributions up to $5,500 (plus $1,000 “catch up” if 50 or older) per year are allowed. The advantages Read on! →

4th Quarter Small Business Considerations

The Year End Crunch For many, the passing of Labor Day signals the beginning of fall and the inevitable acceleration of year-end activities.  Year-end is punctuated by striving to make annual goals, completion of next year’s business plan and the number of work days reduced by holidays.  In other words, the 4th quarter is very busy and it is never too early to begin thinking about and documenting what must get done. Is Healthcare on the Radar? While not in the news as much, open enrollment for 2015 Affordable Care Act health insurance coverage begins November 15, 2014.  If you are a business owner considering offering health insurance to your employees, take time to review how the Insurance Marketplace works in your area.  The Small Business Health Options Program (SHOP) Marketplace is open to employers with 50 or fewer full time equivalent employees (FTE) and might provide an affordable way to provide health insurance to employees.  For businesses with fewer than 25 employees, health insurance costs can sometimes be offset by tax credits.  The tax credit is worth up to Read on! →

Are You and Your Business Covered?

If your business leases space from a commercial property manager, chances are you have sufficient business owner and umbrella insurance coverage.  Most landlords have extensive insurance requirements tenants must obtain prior to occupying their space.  If you are contemplating whether to start a business or if you already run a business out of your home or another piece of property, having the right insurance coverage is important. The Basics While specific coverage amounts requirements may vary depending on the type of business, tenants are generally required to maintain the following types of insurance coverage at their own cost. (1) Commercial general liability insurance applicable to the premises and its appurtenances. (2) Property insurance covering all above building standard leasehold improvements and tenant’s trade fixtures, equipment, furniture and other personal property within the premises. (3) Business income (formerly “business interruption”) insurance written on an actual loss sustained form or with sufficient limits to address reasonably anticipated business interruption losses. (4) Business automobile liability insurance to cover all owned, hired and non-owned automobiles owned or operated by tenant (5) Workers’ compensation insurance Read on! →

Tax Support for Small Business

As a small business owner there are many challenges that have to be addressed.  In addition to launching the service or product you dreamed of rolling out to a welcoming public, the small business owner is constantly inundated with the often mundane tasks of running the business.  If well-funded, the small business owner might have the luxury of hiring people to assist.  Engaging an accountant, lawyer or financial advisor to help with bookkeeping and payroll, business registration and filings or employee retirement plans is often money well spent.  Other jobs can be handled by the owner themselves or maybe by another employee of the company. Small business owners with employees and self-employed individuals know that tax obligations are with them year round.  Most also know there are important deadlines and specific rules to follow.  If unfamiliar with the tax calendar, a deadline is missed or a rule is misinterpreted, these failures can come with negative consequences, many of which are financial.  Regardless of whether a tax related job is outsourced or done in-house, it helps to be prepared and knowledgeable Read on! →