Posts Tagged ‘Pension’

401k

S-Corporations, 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…

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Close up of a person's hands holding a pen wearing a business suit while sitting at a glass reflective table.

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”…

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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…

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The safe harbor deadline for 2016 is October 1st so time is of the essence If you or your clients have been thinking it’s time to add a 401(k) Plan for yourself & your employees, the time is now. As you’re likely aware, the IRS offers a “Safe Harbor” feature that means if you are…

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In recent years workforces have become increasingly transient. One unintended consequence is that when employees leave their jobs, many also leave benefits behind. Years later these benefits may be difficult to find, or employees may not even know that such benefits are owed. Steps to Finding Your 401(k) and Pension Plans 1. Locate your old…

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As a small business owner, you may have considered selling your business to a competitor or shopped it via a business broker.  One option you might wish to consider is selling it to your employees via an Employee Stock Ownership Plan (“ESOP”).  While every idea has pros & cons, for the business owner an ESOP…

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If you’re a participant in a government sponsored pension plan and looking to collect Social Security in retirement, you may find yourself subject to the “Windfall Elimination Provision” or “WEP”.  This mainly applies to workers in government jobs hired before 1984 whereby they didn’t pay into Social Security during their government employment, but may have…

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A Pension Obligation Bond has a ripple effect. The key is to thoroughly investigate from the outset whether or not this financial instrument is the most suitable choice. It is a long-term commitment involving a fixed repayment schedule. The rewards forever hold the promise of outweighing the risk. Each municipality has a different degree of…

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