Complex Problems. Simplified Solutions.


15 Aug

What’s the difference between GASB 74 & GASB 75?


GASB 74 is required for plan level financial reporting while GASB 75 is required for employer or plan sponsor level financial reporting  for municipal entities subject to GASB reporting that offer OPEB (medical, dental & life insurance for former employees & retirees) type benefits. GASB 74 – key issues to consider Are you prefunding your OPEB benefits […]

14 Aug

Do S-Corporation Distributions count for 401k & Pension Plans?


S-Corps, Distributions, W-2 Wages, Self-Employment Tax, 401k & Pension Plans & their interaction – it’s all about balance. So, you’ve talked to your accountant & they tell you to minimize your W-2 wages to limit your self-employment taxes. Then, you talk to your investment advisor and they explain the advantages of tax-qualified retirement plans such […]

13 Aug

Can a LLC member contribute to a 401(k) Plan?


Generally 401(k) deferrals & contributions are allowed, but there are exceptions. The biggest issue to consider is whether or not the member/owner is providing material services that are income producing for the LLC. Here is the basic checklist or list of things to consider: Under Internal Revenue Code Section 401(c)(1), the IRS states that “employee” […]

11 Aug

How much does a OPEB or GASB 45/75 valuation cost?


This, of course, is one of the key questions that a Treasurer, Auditor, Accountant or School Business manager has when they begin researching the costs of GASB OPEB compliance. Here at Odyssey Advisors, I get this question hundreds of times each year from entities large & small. We understand. Price, among many factors, matters. Especially […]

GE Retiree Health Care Law Suit Dismissed by Judge


Pay attention to the language in your employee handbook! In summary judgement this week, US District Judge Lynn Adelman in Milwaukee dismissed a suit filed by General Electric (“GE”) retirees claiming the plaintiffs have “not shown that they were cognizably harmed by GE’s fiduciary conduct with respect to the plans.”. In 2012, GE eliminated its […]

07 Jun
Vanguard How America Saves 2017 based on 2016 Defined Contribution Data - Target-Date funds roll on

Target-Date funds expand their reach in 401(k) plans


Vanguard Group recently issued their 110 page “How America Saves 2017” report on the behavior of defined contribution plan participants in the plans that they record-keep. The trend toward professionally managed options – primarily target-date funds – continues with 53% of participants using such accounts in 2016 (46% were in a single target-date fund). This is […]

04 Jun
Euler's Team van - Hood to Coast

Leonhard Euler has fans in the running community


When traveling for business (or pleasure), I see many things. However, as a mathematics major working as an Actuary, it was a pleasure to come across the Team Euler van from the Hood to Coast race here in Portland, OR. As one who recalls having to memorize Euler’s number to 15 decimal places in 11th […]

31 May
Prescription Drugs under Medicare Part D

Medicare Part D – High Cost drugs drive up OPEB costs


So, you’re an employer who generously offers medical benefits to your retirees. If so, you’ve seen prescription drug prices skyrocket over the last several years – increasing by an average of 14% per year from 2011-2015 and continuing through today. Prescription drug spending by retirees enrolled in the Medicare Part D program has been growing […]

26 May

OPEB / GASB 75 Lunch-n-Learn – the recap


We had a great “Lunch-n-Learn” session on May 24th with PARS & Vanguard to help demystify the coming changes to OPEB accounting standards for municipal entities as it relates to their retiree medical programs. GASB 74 & GASB 75 represent a significant change from the current standards and we shared the key points about how […]

15 May

Cybersecurity & Business Continuity


You’ve no doubt heard about the worldwide outbreak of “ransomware” from the WannaCry malware attack that crippled computers, networks and organizations. Hopefully your business hasn’t been impacted, but it provides a great reminder of the importance of maintaining your computer networks and keeping them up-to-date. This particular malware targeted legacy Microsoft systems such as Windows […]