One primary reason individuals contribute to a Traditional IRA is for the tax deduction. But deduction eligibility is different than contribution eligibility, and individuals who do not qualify for a deduction can still contribute to a Traditional IRA.
Read MoreThe Internal Revenue Service (IRS) has released a proposed regulation reflecting statutory changes related to long-term, part-time (LTPT) employees made by the SECURE Act of 2019 (SECURE Act) and the SECURE 2.0 Act of 2022 (SECURE 2.0).
Read MoreWith the passing of key retirement legislation in the last few years, there are many incentives for employers to adopt a qualified retirement plan that can provide meaningful benefits to employees. While there are numerous factors to consider during the establishment process, employers should consider certain effective dates that will significantly affect the success of their plan’s initial year of operation.
Read MoreTo make HSA contributions, an individual must be covered by a qualifying high deductible health plan (HDHP), and not be covered by a plan that is not an HDHP. However, when it comes to HSA eligibility, not all HDHPs are created equal.
Read MoreAs benefits enrollment season fast approaches, you may see an increase in new clients looking to set up HSAs. Now may be a perfect time for you and your staff members to brush up on your HSA knowledge, especially when it comes to understanding HSA eligibility.
Read MoreIf you have clients who own an HSA, they may have questions about using their HSA money to pay or reimburse themselves for medical expenses that they’ve incurred. Do they understand the tax advantages—and any tax consequences—of HSA distributions? Educating your clients about HSA distributions can help them get the most from their HSA savings.
Read MoreWhat is an owner-only 401(k) plan? How much can be contributed to an owner-only 401(k) plan? What makes an owner-only 401(k) plan appealing?
Read MoreConfused about the rules for hardship distributions from employer-sponsored retirement plans after the recent legislative and regulatory changes? What changes were made to the safe harbor hardship distribution standard? Can hardship distributions be taken from any asset source in the plan?
Read MoreCan IRA owners who are age 72 or older and still working offset their required minimum distributions by the amount of IRA contributions they make? Do IRA owners now have to be age 72 or older to take qualified charitable distributions?
Read MoreWhat is the maximum amount an unmarried couple with family HDHP coverage can contribute to their HSAs? Can a child listed as a dependent for HDHP coverage purposes but not claimed as a tax dependent still use HSA assets to pay medical expenses? How does divorce affect the HSA contribution limit?
Read MoreYou may have clients who ask if they can open an IRA for their minor child. The short answer is yes, their child can have an IRA. There are no minimum age limits on who can own an IRA. But there are some things you’ll need to know before opening an account for a minor.
Read MoreThe DOL has withdrawn the independent contractor rule that was scheduled to take effect on May 7, 2021.
Read MoreThe Department of Labor has proposed withdrawing the independent contractor rule, which has not yet taken effect. The rule’s intended purpose was to clarify the distinctions between an “employee” and an “independent contractor” for purposes of worker classification.
Read MoreThe Department of Labor has proposed delaying the effective date of final regulations that would clarify the distinctions between an “employee” and an “independent contractor” for purposes of worker classification.
Read MoreWith benefits enrollment season soon underway, your organization may see an uptick during this time of year in potential clients who are looking to set up HSAs. Be ready to assist them—and your staff—by knowing and understanding the requirements for establishing an HSA.
Read MoreWhen an HSA owner turns 65, must the entire HSA be distributed? Can an HSA owner who is 65 or older use HSA assets to pay Medicare premiums? What happens if an HSA owner age 65 or older uses HSA assets for nonqualified expenses?
Read MoreIRS Notice 2020-15 addresses testing and treatment of COVID-19 as it pertains to HSA contribution eligibility.
Read MoreOne of the most significant changes affecting IRAs as a result of the SECURE Act is the repeal of the age limit on Traditional IRA contributions. Effective for 2020 and later taxable years, individuals of any age can make Traditional IRA contributions, if they have eligible compensation.
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