Tax Strategies gbfadmin Tax Strategies gbfadmin

Changes to 2016 Tax Filing Deadlines

In 2015, a bill was passed that changed tax filing deadlines for certain IRS forms that will impact a lot of filers. Not only is it important to know the changes so you can prepare and file your return timely but to understand why the changes were made.

In 2015, a bill was passed that changed tax filing deadlines for certain IRS forms that will impact a lot of filers.  Not only is it important to know the changes so you can prepare and file your return timely but to understand why the changes were made.

Summary of Changes

IRS Form Business Type Previous Deadline New Deadline

1065 Partnership April 15 March 15

1120C Corporation March 15 April 15

NOTE:  The dates in the chart above are for companies with years ending 12/31.  If a company has a different fiscal year, Partnerships will now file by the 15th day of the third month following year end and C Corporations will now file by the 15th day of the fourth month following year end.

Why the Changes?

The most practical reason for the change to filing deadlines is that individuals with partnership interests will now have a better opportunity to file their individual returns (Form 1040) without extending.  Form K-1 provides information related to the activity of a Partnership at the level of each individual partner.  For example, if I own 50% of a Partnership, my K-1 would show 50% of the income (or loss) generated, certain deductions, and any other activity needed for me to file my Form 1040.  The issue with the previous Partnership return deadline of April 15th is that it coincided with the individual deadline.  This resulted in partners of the company not receiving their K-1’s with sufficient time to file their personal return by April 15th.   With Partnerships now having a deadline of March 15th, this will give individuals a month to receive their K-1 and file their personal return without having to extend.

The deadline for Form 1120, which is filed by C Corporations, was also changed with this bill.  Where the Form 1065 deadline was cut back by a month, the Form 1120 was extended a month.  C Corporations, for tax purposes, are treated similar to individuals whereas they pay taxes directly when they file their return.  Partnerships are not taxed directly, rather the income or loss is passed through to each individual partner who recognizes the tax ramifications on their personal return.  For this reason, the deadline for Form 1120 being extended a month has little impact, if any, on individuals.  The change gives C Corporations more time to file without having to extend the return.

S Corporations are another common business type.  The deadlines for S Corporation returns (Form 1120S) were not changed with this bill.  S Corporations are similar to Partnerships in that K-1’s are distributed to owners and the income or loss generated is passed through to the individuals return.  That being said, Form 1120S already has a due date of March 15th, the same as the new Partnership deadline.

Extension Deadlines

IRS Form Business Type Deadline

1040 Individual October 15

1065 Partnership September 15

1120 C Corporation September 15

1120S S Corporation September 15

Extension deadlines were not immediately changed with the passing of the bill.  Although Partnerships previously had the same filing deadline as individuals, the deadline with the filing of an extension was a month before.  This was necessary because if a Partnership did not have to file an extended return until October 15th, individuals with partnership interests wouldn’t have a choice but to file delinquent.

The one change to the extension chart above set to take place in 2026 is the C Corporation extension being changed to October 15th.

Summary

Overall, the changes appear to have improved the filing calendar.  This may be a big adjustment for Partnerships that are used to the April 15th deadline as they will have one less month to get organized and file.  For this reason, you may see an increase in 2016 Partnership extensions.

About Rob……...

Hi, I’m Rob Mangold. I’m the Chief Operating Officer at Greenbush Financial Group and a contributor to the Money Smart Board blog. We created the blog to provide strategies that will help our readers personally , professionally, and financially. Our blog is meant to be a resource. If there are questions that you need answered, pleas feel free to join in on the discussion or contact me directly.

Related Posts
Why Do Wealthy Families Set Up Foundations and How Do They Work?
Why Do Wealthy Families Set Up Foundations and How Do They Work?

When a business owner sells their business and is looking for a large tax deduction and has charitable intent, a common solution is setting up a private foundation to capture a large tax deduction.  In this video, we will cover how foundations work, what is the minimum funding amount, the tax benefits, how the foundation is funded, and more……. 

The Huge NYS Tax Credit Available For Donations To The SUNY Impact Foundation
The Huge NYS Tax Credit Available For Donations To The SUNY Impact Foundation

There is a little-known, very lucrative New York State Tax Credit that came into existence within the past few years for individuals who wish to make charitable donations to their SUNY college of choice through the SUNY Impact Foundation.  The tax credit is so large that individuals who make a $10,000 donation to the SUNY Impact Foundation can receive a dollar-for-dollar tax credit of $8,500 whether they take the standard deduction or itemize on their tax return. This results in a windfall of cash to pre-selected athletic programs and academic programs by the donor at their SUNY college of choice, with very little true out-of-pocket cost to the donors themselves once the tax credit is factored in.

The Trump Tax Plan for 2025: Social Security, Tips, Overtime, SALT Cap, and more….
The Trump Tax Plan for 2025: Social Security, Tips, Overtime, SALT Cap, and more….

It seems as though the likely outcome of the 2024 presidential elections will be a Trump win, and potentially full control of the Senate and House by the Republicans to complete the “full sweep”.  As I write this article at 6am the day after election day, it looks like Trump will be president, the Senate will be controlled by the Republicans, and the House is too close to call.  If the Republicans complete the full sweep, there is a higher probability that the tax law changes that Trump proposed on his campaign trail will be passed by Congress and signed into law as early as 2025. 

What Is A Donor Advised Fund and How Do They Work for Charitable Contributions?
What Is A Donor Advised Fund and How Do They Work for Charitable Contributions?

Due to changes in the tax laws, fewer individuals are now able to capture a tax deduction for their charitable contributions.   In an effort to recapture the tax deduction, more individuals are setting up Donor Advised Funds at Fidelity and Vanguard to take full advantage of the tax deduction associated with giving to a charity, church, college, or other not-for-profit organizations. 

What Vehicle Expenses Can Self-Employed Individuals Deduct?
What Vehicle Expenses Can Self-Employed Individuals Deduct?

Self-employed individuals have a lot of options when it comes to deducting expenses for their vehicle to offset income from the business.  In this video we are going to review:

1) What vehicle expenses can be deducted: Mileage, insurance, payments, registration, etc.

2) Business Use Percentage

3) Buying vs Leasing a Car Deduction Options

4) Mileage Deduction Calculation

5) How Depreciation and Bonus Depreciation Works

6) Depreciation recapture tax trap

7) Can you buy a Ferreri through the business and deduct it? (luxury cars)

8) Tax impact if you get into an accident and total the vehicle 

Focusing On Buying Dividend Paying Stocks Is A Mistake
Focusing On Buying Dividend Paying Stocks Is A Mistake

Picking the right stocks to invest in is not an easy process but all too often I see retail investors make the mistake of narrowing their investment research to just stocks that pay dividends.   This is a common mistake that investors make and, in this article, we are going to cover the total return approach versus the dividend payor approach to investing. 

What Is an ETF & Why Have They Surpassed Mutual Funds in Popularity?
What Is an ETF & Why Have They Surpassed Mutual Funds in Popularity?

There is a sea change happening in the investment industry where the inflows into ETF’s are rapidly outpacing the inflows into mutual funds.  When comparing ETFs to mutual funds, ETFs sometimes offer more tax efficiency, trade flexibility, a wider array of investment strategies, and in certain cases lower trading costs and expense ratios which has led to their rise in popularity among investors.  But there are also some risks associated with ETFs that not all investors are aware of……..

When Should High-Income Earners Max Out Their Roth 401(k) Instead of Pre-tax 401(k)?
When Should High-Income Earners Max Out Their Roth 401(k) Instead of Pre-tax 401(k)?

While pre-tax contributions are typically the 401(k) contribution of choice for most high-income earners, there are a few situations where individuals with big incomes should make their deferrals contribution all in Roth dollars and forgo the immediate tax deduction.

2023 RMDs Waived for Non-spouse Beneficiaries Subject To The 10-Year Rule
2023 RMDs Waived for Non-spouse Beneficiaries Subject To The 10-Year Rule

There has been a lot of confusion surrounding the required minimum distribution (RMD) rules for non-spouse, beneficiaries that inherited IRAs and 401(k) accounts subject to the new 10 Year Rule. This has left many non-spouse beneficiaries questioning whether or not they are required to take an RMD from their inherited retirement account prior to December 31, 2023. Here is the timeline of events leading up to that answer

Requesting FICA Tax Refunds For W2 Employees With Multiple Employers
Requesting FICA Tax Refunds For W2 Employees With Multiple Employers

If you are a W2 employee who makes over $160,200 per year and you have multiple employers or you switched jobs during the year, or you have both a W2 job and a self-employment gig, your employer(s) may be withholding too much FICA tax from your wages and you may be due a refund of those FICA tax overpayments. Requesting a FICA tax refund requires action on your part and an understanding of how the FICA tax is calculated.

Top 10 Things To Know About Filing A Tax Extension
Top 10 Things To Know About Filing A Tax Extension

Are you considering filing for a tax extension? It can be a great way to give yourself more time to organize your financial documents and ensure that the information on your return is accurate. But before you file the extension, here are a few things you should know.

The New PTET Tax Deduction for Business Owners
The New PTET Tax Deduction for Business Owners

The PTET (pass-through entity tax) is a deduction that allows business owners to get around the $10,000 SALT cap that was put in place back in 2017. The PTET allows the business entity to pay the state tax liability on behalf of the business owner and then take a deduction for that expense.

401(K) Cash Distributions: Understanding The Taxes & Penalties
401(K) Cash Distributions: Understanding The Taxes & Penalties

When an employee unexpectedly loses their job and needs access to cash to continue to pay their bills, it’s not uncommon for them to elect a cash distribution from their 401(K) account. Still, they may regret that decision when the tax bill shows up the following year and then they owe thousands of dollars to the IRS in taxes and penalties that they don’t have.

$7,500 EV Tax Credit: Use It or Lose It
$7,500 EV Tax Credit: Use It or Lose It

Claiming the $7,500 tax credit for buying an EV (electric vehicle) or hybrid vehicle may not be as easy as you think. First, it’s a “use it or lose it credit” meaning if you do not have a federal tax liability of at least $7,500 in the year that you buy your electric vehicle, you cannot claim the full $7,500 credit and it does not carryforward to future tax years.

Can You Contribute To An IRA & 401(k) In The Same Year?
Can You Contribute To An IRA & 401(k) In The Same Year?

There are income limits that can prevent you from taking a tax deduction for contributions to a Traditional IRA if you or your spouse are covered by a 401(k) but even if you can’t deduct the contribution to the IRA, there are tax strategies that you should consider

Kiddie Tax & Other Pitfalls When Gifting Assets To Your Kids
Kiddie Tax & Other Pitfalls When Gifting Assets To Your Kids

Before you gift assets to your children make sure you fully understand the Kiddie Tax rule and other pitfalls associated with making gift to your children……….

How To Pay 0% Tax On Capital Gains Income
How To Pay 0% Tax On Capital Gains Income

When you sell a stock, mutual fund, investment property, or a business, if you have made money on that investment, the IRS is kindly waiting for a piece of that gain in the form of capital gains tax. Capital gains are taxed differently than the ordinary income that you received via your paycheck or pass-through income from your business. Unlike ordinary

Roth Conversions In Retirement
Roth Conversions In Retirement
Paying Tax On Inheritance?
Paying Tax On Inheritance?
Retirement Account Withdrawal Strategies
Retirement Account Withdrawal Strategies

The order in which you take distributions from your retirement accounts absolutely matters in retirement. If you don’t have a formal withdraw strategy it could end up costing you in more ways than one. Click to read more on how this can effect you.

Estimated Tax Payments Still Due April 15th
Estimated Tax Payments Still Due April 15th

The IRS extended the tax filing deadline for 2020 from April 15th to May 15th. Click to read more on the questions that we are getting from business owners, retirees, and individuals taxpayers.

COVID-19 Distribution Tax Forms!!!
COVID-19 Distribution Tax Forms!!!

If you took a COVID distribution from a retirement account, IRA, 401(K), in 2020, you will have to report it on your taxes. Here are the special tax forms that you will need to report your COVID distribution. DISCLOSURE: This is for…

At What Age Does A Child Have To File A Tax Return?
At What Age Does A Child Have To File A Tax Return?

When your children begin working and they receive their first W2, the question from parents is often “Do they have to file a tax return?” In this video we will cover

Will Moving From New York to Florida In Retirement Save You Taxes?
Will Moving From New York to Florida In Retirement Save You Taxes?

I am getting the question much more frequently from clients - "When I retire, does it make sense from a tax standpoint to change my residency from New York to Florida?". When I explain how the taxes work

When You Make Cash Gifts To Your Children, Who Pays The Tax?
When You Make Cash Gifts To Your Children, Who Pays The Tax?

A very common question that we frequently receive from clients is “If I want to make a cash gift to my kids, do I have to pay gift taxes?” The answer to that question depends on number of items such as: The amount of the gift

Do I Have to Pay Tax When I Sell My House?
Do I Have to Pay Tax When I Sell My House?

When you sell your primary residence, and meet certain requirements, you may be able to exclude all or a portion of your capital gain in the property from taxes. In this article, I am going to cover the $250,000

Coronavirus RMD Relief: Ability To Waive Mandatory IRA Distributions In 2020
Coronavirus RMD Relief: Ability To Waive Mandatory IRA Distributions In 2020

Congress passed the CARES Act in March 2020 which provides individuals with IRA, 401(k), and other employer sponsored retirement accounts, the option to waive their required minimum distribution (RMD) for the 2020 tax year.

$5,000 Penalty Free Distribution From An IRA or 401(k) After The Birth Of A Child or Adoption
$5,000 Penalty Free Distribution From An IRA or 401(k) After The Birth Of A Child or Adoption

New parents have even more to be excited about in 2020. On December 19, 2019, Congress passed the SECURE Act, which now allows parents to withdraw up to $5,000 out of their IRA’s or 401(k) plans following the birth of their child

Understanding Required Minimum Distributions & Advanced Tax Strategies For RMD's
Understanding Required Minimum Distributions & Advanced Tax Strategies For RMD's

A required minimum distribution (RMD) is the amount that the IRS requires you to take out of your retirement account each year when you hit a certain age or when you inherit a retirement account from someone else. It’s important to plan tax-wise for these distributions because they can substantially increase your tax liability in a given year;

Do I Have To Pay Tax On A House That I Inherited?
Do I Have To Pay Tax On A House That I Inherited?

The tax rules are different depending on the type of assets that you inherit. If you inherit a house, you may or may not have a tax liability when you go to sell it. This will largely depend on whose name was on the deed when the house was passed to you. There are also special exceptions that come into play if the house is owned by a trust, or if it was gifted

Read More
Company Retirement Plans, Retirement Central gbfadmin Company Retirement Plans, Retirement Central gbfadmin

A New Year: Should I Make Changes To My Retirement Account?

A simple and easy answer to this question would be…..Maybe? Not only would that answer make this article extremely short, it wouldn’t explain some important items that participants should take into consideration when making decisions about their retirement plan.Every time the calendar adds a year we get a sense of reset. A lot of the same tasks on the

A simple and easy answer to this question would be…..Maybe?  Not only would that answer make this article extremely short, it wouldn’t explain some important items that participants should take into consideration when making decisions about their retirement plan.Every time the calendar adds a year we get a sense of reset.  A lot of the same tasks on the to do list get added each January and hopefully this article helps you focus on matters to consider regarding your retirement plan.

Should I Consult With The Advisor On My Plan?

At our firm we make an effort to meet with participants at least annually.  Saving in company retirement plans is about longevity so many times the individual meetings are brief and no allocation changes are made.  Even if this is the result, an overview of your account, at least annually, is a good way to keep retirement savings fresh in your mind and add a sense of comfort that you’re investing appropriately based on your time horizon and risk tolerance.

These individual meetings are also a good time to discuss other financial questions you may have.  Your retirement plan is only a piece of your financial plan and we encourage participants to use the resources available to them.  Often times these meetings start off as a simple account overview but turn into lengthy conversations about various financial decisions the participant has been weighing.

How Much Should I Be Contributing This Year?

This answer is not the same for everyone because, among other things, people have different retirement goals, financial situations, and time horizon.  That being said, if the  company has a match component in their plan, the first milestone would be to contribute enough to receive the most the company is willing to give you.  For example, if the company will match 100% of your contributions up to 3% of pay, any amount you contribute less than 3% will leave you missing out on retirement savings the company is willing to provide you.

Again, the amount that should be saved is dependent on the individual but saving anywhere from 10% to 15% of your compensation is a good benchmark.  In the previous example, if the company will match 3%, that means you would have to contribute 7% to achieve the lower end of that benchmark.  This may seem like a difficult task so starting at an amount you are comfortable with and working your way to your ultimate goal is important.

Should You Be Making Allocation Changes?

The initial allocation you choose for your retirement account is important.  Selecting the   appropriate portfolio from the start based on your risk tolerance and time until retirement can satisfy your investment needs for a number of years.  The chart below shows that over longer periods of time historical annual returns tend to be less volatile.

When you have over 10 years until retirement, reviewing the account at least annually is   important as there are a number of reasons you would want to change your allocation.  Lifestyle changes, different retirement goals, or specific investment performance to name a few. Participants tend to lose out on investment return when they try to time the market and are forced to sell low and buy high.  This chart shows that even though there may be volatility in the short term, as long as you have time and an appropriate allocation from the start, you should see returns that will help you achieve your retirement goals. 

About Rob……...

Hi, I’m Rob Mangold. I’m the Chief Operating Officer at Greenbush Financial Group and a contributor to the Money Smart Board blog. We created the blog to provide strategies that will help our readers personally , professionally, and financially. Our blog is meant to be a resource. If there are questions that you need answered, pleas feel free to join in on the discussion or contact me directly.

Related Posts
Leaving Your Job? What Should You Do With Your 401(k)?
Leaving Your Job? What Should You Do With Your 401(k)?

When you separate service from an employer, you have to make decisions with regard to your 401K plan.  It’s important to understand the pros and cons of each option while also understanding that the optimal solution often varies from person to person based on their financial situation and objectives.  The four primary options are:

1)      Leave it in the existing 401(k) plan

2)      Rollover to an IRA

3)      Rollover to your new employer’s 401(k) plan

4)      Cash Distribution

Focusing On Buying Dividend Paying Stocks Is A Mistake
Focusing On Buying Dividend Paying Stocks Is A Mistake

Picking the right stocks to invest in is not an easy process but all too often I see retail investors make the mistake of narrowing their investment research to just stocks that pay dividends.   This is a common mistake that investors make and, in this article, we are going to cover the total return approach versus the dividend payor approach to investing. 

What Is an ETF & Why Have They Surpassed Mutual Funds in Popularity?
What Is an ETF & Why Have They Surpassed Mutual Funds in Popularity?

There is a sea change happening in the investment industry where the inflows into ETF’s are rapidly outpacing the inflows into mutual funds.  When comparing ETFs to mutual funds, ETFs sometimes offer more tax efficiency, trade flexibility, a wider array of investment strategies, and in certain cases lower trading costs and expense ratios which has led to their rise in popularity among investors.  But there are also some risks associated with ETFs that not all investors are aware of……..

When Should High-Income Earners Max Out Their Roth 401(k) Instead of Pre-tax 401(k)?
When Should High-Income Earners Max Out Their Roth 401(k) Instead of Pre-tax 401(k)?

While pre-tax contributions are typically the 401(k) contribution of choice for most high-income earners, there are a few situations where individuals with big incomes should make their deferrals contribution all in Roth dollars and forgo the immediate tax deduction.

How Much Should I Contribute to Retirement?
How Much Should I Contribute to Retirement?

A question I’m sure to address during employee retirement presentations is, “How Much Should I be Contributing?”.   In this article, I will address some of the variables at play when coming up with your number and provide detail as to why two answers you will find searching the internet are so common.

Federal Disaster Area Penalty-Free IRA & 401(k) Distribution and Loan Options   
Federal Disaster Area Penalty-Free IRA & 401(k) Distribution and Loan Options   

Individuals who experience a hurricane, flood, wildfire, earthquake, or other type of natural disaster may be eligible to request a Qualified Disaster Recovery Distribution or loan from their 401(k) or IRA to assist financially with the recovery process. The passing of the Secure Act 2.0 opened up new distribution and loan options for individuals whose primary residence is in an area that has been officially declared a “Federal Disaster” area.

Starting in 2024, 401(k) Plan Will Be Required to Cover Part-time Employees   
Starting in 2024, 401(k) Plan Will Be Required to Cover Part-time Employees   

In the past, companies have been allowed to limit access to their 401(k) plan to just full-time employees but that is about to change starting in 2024. With the passing of the Secure Act, beginning in 2024, companies that sponsor 401(K) plans will be required to allow part-time employees to participate in their qualified retirement plans.

Fewer 401(k) Plans Will Require A 5500 Audit Starting in 2023
Fewer 401(k) Plans Will Require A 5500 Audit Starting in 2023

401(K) plans with over 100 eligible plan participants are considered “large plans” in the eyes of DOL and require an audit to be completed each year with the filing of their 5500. These audits can be costly, often ranging from $8,000 - $30,000 per year.

Starting in 2023, there is very good news for an estimated 20,000 401(k) plans that were previously subject to the 5500 audit requirement. Due to a recent change in the way that the DOL counts the number of plan participants for purposes of assessing a large plan filer status, many plans that were previously subject to a 401(k) audit, will no longer require a 5500 audit for plan year 2023 and beyond.

3 New Startup 401(k) Tax Credits
3 New Startup 401(k) Tax Credits

When Congress passed the Secure Act 2.0 in December 2022, they introduced new tax credits and enhanced old tax credits for startup 401(k) plans for plan years 2023 and beyond. There are now 3 different tax credits that are available, all in the same year, for startup 401(k) plans that now only help companies to subsidize the cost of sponsoring a retirement plan but also to offset employer contributions made to the employee to enhance a company’s overall benefits package.

Mandatory Roth Catch-up Contributions for High Wage Earners - Secure Act 2.0
Mandatory Roth Catch-up Contributions for High Wage Earners - Secure Act 2.0

Starting in 2026, individuals that make over $145,000 in wages will no longer be able to make pre-tax catch-up contributions to their employer-sponsored retirement plan. Instead, they will be forced to make catch-up contributions in Roth dollars which means that they will no longer receive a tax deduction for those contributions.

Secure Act 2.0:  Roth Simple IRA Contributions Beginning in 2023
Secure Act 2.0:  Roth Simple IRA Contributions Beginning in 2023

With the passage of the Secure Act 2.0, for the first time ever, starting in 2023, taxpayers will be allowed to make ROTH contributions to Simple IRAs. Prior to 2023, only pre-tax contributions were allowed to be made to Simple IRA plans.

Self-Employment Income In Retirement? Use a Solo(k) Plan To Build Wealth
Self-Employment Income In Retirement? Use a Solo(k) Plan To Build Wealth

It’s becoming more common for retirees to take on small self-employment gigs in retirement to generate some additional income and to stay mentally active and engaged. But, it should not be overlooked that this is a tremendous wealth-building opportunity if you know the right strategies. There are many, but in this article, we will focus on the “Solo(k) strategy

401(K) Cash Distributions: Understanding The Taxes & Penalties
401(K) Cash Distributions: Understanding The Taxes & Penalties

When an employee unexpectedly loses their job and needs access to cash to continue to pay their bills, it’s not uncommon for them to elect a cash distribution from their 401(K) account. Still, they may regret that decision when the tax bill shows up the following year and then they owe thousands of dollars to the IRS in taxes and penalties that they don’t have.

401K Loans: Pros vs Cons
401K Loans: Pros vs Cons

There are a number of pros and cons associated with taking a loan from your 401K plan. There are definitely situations where taking a 401(k) loan makes sense but there are also number of situations where it should be avoided.

Can You Contribute To An IRA & 401(k) In The Same Year?
Can You Contribute To An IRA & 401(k) In The Same Year?

There are income limits that can prevent you from taking a tax deduction for contributions to a Traditional IRA if you or your spouse are covered by a 401(k) but even if you can’t deduct the contribution to the IRA, there are tax strategies that you should consider

Should You Make Pre-tax or Roth 401(k) Contributions?
Should You Make Pre-tax or Roth 401(k) Contributions?

When you become eligible to participate in your employer’s 401(k), 403(b), or 457 plan, you will have to decide what type of contributions that you want to make to the plan.

Cash Balance Plans: $100K to $300K in Pre-tax Contributions
Cash Balance Plans: $100K to $300K in Pre-tax Contributions

DB/DC combo plans can allow business owners to contribute $100,000 to $300,000 pre-tax EACH YEAR which can save them tens of thousands of dollars in taxes.

Coronavirus Relief: $100K 401(k) Loans & Penalty Free Distributions
Coronavirus Relief: $100K 401(k) Loans & Penalty Free Distributions

With the passing of the CARES Act, Congress made new distribution and loan options available within 401(k) plans, IRA’s, and other types of employer sponsored plans.

$5,000 Penalty Free Distribution From An IRA or 401(k) After The Birth Of A Child or Adoption
$5,000 Penalty Free Distribution From An IRA or 401(k) After The Birth Of A Child or Adoption

New parents have even more to be excited about in 2020. On December 19, 2019, Congress passed the SECURE Act, which now allows parents to withdraw up to $5,000 out of their IRA’s or 401(k) plans following the birth of their child

Percentage of Pay vs Flat Dollar Amount
Percentage of Pay vs Flat Dollar Amount

Enrolling in a company retirement plan is usually the first step employees take to join the plan and it is important that the enrollment process be straight forward. There should also be a contact, i.e. an advisor (wink wink), who can guide the employees through the process if needed. Even with the most efficient enrollment process, there is a lot of

What Happens To My Pension If The Company Goes Bankrupt?
What Happens To My Pension If The Company Goes Bankrupt?

Given the downward spiral that GE has been in over the past year, we have received the same question over and over again from a number of GE employees and retirees: “If GE goes bankrupt, what happens to my pension?” While it's anyone’s guess what the future holds for GE, this is an important question that any employee with a pension should

Volatility, Market Timing, and Long-Term Investing
Volatility, Market Timing, and Long-Term Investing

For many savers, the objective of a retirement account is to accumulate assets while you are working and use those assets to pay for your expenses during retirement. While you are in the accumulation phase, assets are usually invested and hopefully earn a sufficient rate of return to meet your retirement goal. For the majority,

Target Date Funds: A Public Service Announcement
Target Date Funds: A Public Service Announcement

Before getting into the main objective of this article, let me briefly explain a Target Date Fund. Investopedia defines a target date fund as “a fund offered by an investment company that seeks to grow assets over a specified period of time for a targeted goal”. The specified period of time is typically the period until the date you “target” for retirement

Big Changes For 401(k) Hardship Distributions
Big Changes For 401(k) Hardship Distributions

While it probably seems odd that there is a connection between the government passing a budget and your 401(k) plan, this year there was. On February 9, 2018, the Bipartisan Budget Act of 2018 was passed into law which ended the government shutdown by raising the debt ceiling for the next two years. However, also buried in the new law were

403(b) Lawsuits Continue To Spread To More Colleges
403(b) Lawsuits Continue To Spread To More Colleges

In the last 3 years, the number of lawsuits filed against colleges for excessive fees and compliance issues related to their 403(b) plans has increased exponentially. Here is a list of just some of the colleges that have had lawsuit brought against them by their 403(b) plan participants:

How Does A Simple IRA Plan Work?
How Does A Simple IRA Plan Work?

Not every company with employees should have a 401(k) plan. In many cases, a Simple IRA plan may be the best fit for a small business. These plans carry the following benefits

How Does A SEP IRA Work?
How Does A SEP IRA Work?

SEP stands for “Simplified Employee Pension”. The SEP IRA is one of the most common employer sponsored retirement plans used by sole proprietors and small businesses.

How Do Single(k) Plans Work?
How Do Single(k) Plans Work?

A Single(k) plan is an employer sponsored retirement plan for owner only entities, meaning you have no full-time employees. These owner only entities get the benefits of having a full fledge 401(k) plan without the large administrative costs associated with traditional 401(k) plans.

The Fiduciary Rule: Exposing Your 401(K) Advisor’s Secrets
The Fiduciary Rule: Exposing Your 401(K) Advisor’s Secrets

It’s here. On June 9, 2017, the long awaited Fiduciary Rule for 401(k) plans will arrive. What secrets does your 401(k) advisor have?

Strategies to Save for Retirement with No Company Retirement Plan
Strategies to Save for Retirement with No Company Retirement Plan

The question, “How much do I need to retire?” has become a concern across generations rather than something that only those approaching retirement focus on. We wrote the article, How Much Money Do I Need To Save To Retire?, to help individuals answer this question. This article is meant to help create a strategy to reach that number. More

Read More

Posts by Topic