Category Archives: Business Reports

By Carissa A. Conley, CPA

This year has seen a lot of legislative proposals and a lot of speculation, but not too many new changes to employer-sponsored retirement plans. The most recent set of changes came from the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) of 2019. 

Congress has been working on what’s being tagged as the SECURE Act 2.0, but nothing has yet to make it through. From the 2019 legislation, these are the updates that could affect your retirement plan and employees.

• The age at which Required Minimum Distributions (RMDs) must begin is now 72, instead of age 70 ½.

• Long-term part-time employees will be eligible to participate in employer retirement plans after three years of employment. Since this provision went into effect 2021, the earliest their participation can begin is 2024.

• Inherited retirement accounts must now be fully distributed within 10 years and can no longer be stretched out over the beneficiary’s life expectancy. (There are certain exceptions to this for surviving spouses, minor children, disabled taxpayers, or beneficiaries not more than 10 years younger than the participant).

• New parents can withdraw up to $5,000 from eligible retirement plans without incurring the normal early withdrawal 10% penalty – if this is not incorporated into your plan, the employees can still take advantage of this on their personal tax return.

Keep in mind, if you sponsor a 401k, you must ensure the plan is amended to include the required changes from the SECURE Act. Make sure to check that your plan administrator is taking care of this now.

By Bill Canty

Charitable giving is a great thing to do regardless of whether or not you are able to realize a tax benefit. 

However, if you can help others and realize a tax benefit this is a good thing and might even allow you to give a little bit more. Here are some things to know in trying to maximize the tax benefits of charitable giving. 

The standard deduction is a reduction in taxable income available to all taxpayers regardless of whether or not they can itemize deductions or have any tax credits. For 2022, the standard deduction is: Single and married filing separately,  $12,950; married filing joint, $25,900; and head of household, $19,400. 

If you have itemized deductions in excess of the standard deduction, you can deduct that amount from your taxes. Examples of itemized deductions include: property taxes, state income taxes, mortgage interest, medical expenses and charitable contributions.

Charitable contributions can be made in a number of ways that can qualify as an itemized deduction. These include direct gifts of cash, gifts of securities like stocks, mutual funds, and ETFs, and gifts of property such as real estate, art, and collectibles.

 The amount that can be deducted as an itemized deduction is as high as 60 percent of adjusted gross income for some cash donations, dropping to 50 percent or as low as 20 percent for other types. This percentage can also vary by the type of organization. 

By Mark Shaw

The economy is bumpy, but technology and outsourcing can make it smoother. 

The first thing we all do during uncertain economic times is look for ways to save money and get the most bang for our buck. Just like with anything else, we can seek savings and efficiencies with technology.

All business owners have grown dramatically more dependent on technology to run their businesses, manage their information, and support their remote and onsite workforces. When considering your in-house IT staff, or in many cases what we often call the one-man band, you uncover lack of skills in one area or another. One small team does not possess the knowledge and skills about every aspect of the vastly rapid changing IT world.

Think about the laundry list of items that your in-house IT staff needs to be familiar with to provide daily support for your business. Your IT, telecommunications and security needs go on and on, but below are a few of the items needed to have expertise in:

By Rose Miller

There is a term floating around the TikTok work circles. I like to follow TikTok’s workplace trends discussions because I get to hear what employees are talking about. Similar to the way restaurateurs follow Yelp, some employers follow social media such as TikTok, Reddit, and Twitter to hear what the work force is saying about their employers and their work environments. 

There is a phrase called “quietly quitting” and it is catching on quickly. 

What I found as a surprising discovery was that the term doesn’t mean they are actually leaving their jobs. Instead, they have decided not to take their jobs too seriously. Young professionals are stating they reject the idea of going above and beyond in their careers. The idea is to stay at the company but focus time on things they do outside of work. They have decided to pass on promotions, pay and titles.

They are setting some firm boundaries like refusing to work overtime. They insist on leaving right at five. Others advertise the fact that they will only do enough to get by. Unlike their senior managers, they don’t want their careers to be confused with personal identifies. 

Remember these are young professionals and it’s not uncommon for younger employees to, at first, refuse to climb the corporate ladder, only to end up changing their minds later. Gaining a mortgage, spouse and children can change perspectives and priorities in a drastic way. 

I’m a ‘70s girl and I can remember my generation saying not to trust anyone over 40 years old. It was a time when young people were “anti-establishment” only to become the establishment later in their lives. 

By Jim Amell

After a decade of extremely low inflation, the rapid increase in costs of living we are experiencing has been difficult for most households, particularly retirees on a fixed income. 

Many retirees are facing declining income along with increased expenses. Our current economic environment also provides lessons for everyone on how to position their personal finances for their retirement. 

How should retirees respond so as not to be overwhelmed by increased cost of living? First, determine your monthly income. Social Security benefits have and will continue to increase at a rate roughly equal to the core inflation rate. Unfortunately, Medicare premiums withheld may also increase, leaving beneficiaries with only a slight increase in net social security benefits. 

Revisit your sources of income other than social security. The stock market has declined significantly this year, and whether your retirement savings are in a 401k/IRA/Roth IRA,  taxable investments, cash savings, or a combination of  the amount you can comfortably withdraw depends on the nature of your investments and income generated by those investments. If you withdraw from investments based on a fixed percentage of invested assets you will most likely be withdrawing less than in recent years. 

By Meghan Murray

If you’re like most people, your work has been a central part of your life. So, wouldn’t it be nice to have the flexibility to decide when you no longer want to work?

Many people of retirement age have achieved this type of control. In fact, two-thirds of workers ages 65 and older say they work primarily because they want to, not because they have to, according to a 2021 study by Edward Jones and Age Wave. 

But that means that one-third of workers in this age group feel financially compelled to work. This doesn’t necessarily mean they dislike the work they do — but it’s probably fair to say they would have liked the option of not working. How can you give yourself this choice?

You can start by asking yourself these questions: 

• When do I want to retire? You’ll want to identify the age at which you wish to retire. You may change your mind later and move this date up or back, but it’s a good idea to have a target in mind. 

• What sort of retirement lifestyle do I want? When you retire, do you anticipate staying close to home and pursuing your hobbies, or do you hope to travel the world? Would you like to spend your time volunteering? 

By Christy Alexander

Small businesses are key contributors to the vibrant communities that people want to call home. 

Fortunately, entrepreneurship in the U.S. is on the rise. But for these new businesses to have an impact, they must survive, and by focusing on some key areas, entrepreneurs can have the best possible chance to reach their goals and build thriving, sustainable businesses.

Entrepreneurship can be rewarding, and thoughts of independence are exciting, but the life of an entrepreneur isn’t a good fit for everyone. The truth is that running your own business is hard. It can mean long days of solving problems and taking responsibility for endless decisions. Conquering these obstacles requires passion and relentlessness. The first thing you can do to set yourself up for success as a hopeful entrepreneur is to carefully decide whether you’re ready, willing, and able to accept the challenges of entrepreneurship.

With so many challenges to manage, it’s easy to go adrift, so having a clear vision to guide you is critical. You need to develop a clear image of what you want for your business and your life. It is this clarity that will help you stay on track when you must make tough decisions, and a compelling vision that will inspire others to join you in pursuit of your goals.

Even with a clear vision, you’ll be required to wear many hats in your business. It can be draining, and you will be better off playing to your strengths than trying to work on your weaknesses. Assess your abilities and identify the tools you will need for success.