Startup Retirement Plan Tax Credit

By: Scott M. Cloud, MBA, CPC Employers that establish a brand new employee retirement savings plan are eligible for a tax credit for each of the plan’s first three years.  The tax credit amount is capped at $5,000 for each of the plan’s first three years (i.e., up to $15,000 total), but is limited by 1) the amount of the plan’s service fees...

The “Large Plan” Audit Requirement

By : Scott M. Cloud, MBA, CPC Retirement plan laws require that a company-sponsored retirement plan be subject to an annual audit if it satisfies the definition of a “large-plan”.  The audit must be performed by an Independent Qualified Public Accountant (IQPA) and the audit report must be attached to the Form 5500 filing for that plan...

The Advantages of Including a Safe Harbor Contribution Feature in Your Company 401(k) Plan

By: Scott M. Cloud, MBA,CPC A well-designed 401(k) plan can help to recruit and retain employees, and – for most workers who have access to a company 401(k) plan – it serves as the primary (or only) investment vehicle to accumulate savings for retirement. The 401(k) plan’s effectiveness in helping owners and key personnel to save meaningful...

Winter 2022 – The Retirement Plan Company Newsletter

2022 – An Ideal Time to Review Plan Design SECURE Act Provisions for Long-Term Part-Time Employees Navigating the Labyrinth of Required Minimum Distributions Upcoming Compliance Deadlines for Calendar-Year Plans 2022 – An Ideal Time to Review Plan Design Each year, those in the retirement community collect, analyze and calculate data to...

In-Plan ROTH Conversions

Over the years we have seen a lot of articles and received several calls about “backdoor Roths” or “Mega Roths”. Individuals who expect to pay higher taxes in the future or would like to avoid Required Minimum Distributions may want to consider converting their pre-tax monies to a Roth inside of their 401(k) or ERISA 403(b).  A Roth 401(k)...

After nearly four decades in exile, inflation is making a largely unwelcome comeback.

By: Jerry Alena On October 13, 2021, the Social Security Administration released the 2022 cost-of-living (COLA) increase. At 5.9% it is the largest single -year increase in 40 years.The new OASDI Taxable Wage Base for 2022 was increased to $147,000 from $142,800.Social Security serves over 70 million Americans. Increased payments to 8 million SSI...