When employees leave their jobs, financial advisors typically encourage them to roll over their 401(k) plans into a new employer’s plan or perhaps an IRA. Many people follow this advice, but not everyone. As you may be able to attest, many employers that sponsor 401(k)s or other qualified plans end up with account holders who […]
Many employers now allow employees to work remotely, either all or part of the time. If your organization does and sponsors a health care plan, here’s a brief refresher on some of the rules regarding protected health information (PHI) and the Health Insurance Portability and Accountability Act (HIPAA). The Privacy Rule One major feature of […]
With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a […]
If you’re gathering documents to file your 2023 tax return and you’re concerned that your tax bill may be higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2024, filing date and […]
Although employers have long helped employees save for retirement and have insurance in place for health care, another urgent need has persisted over the years: funds for financial emergencies. To address this problem, SECURE 2.0, a law enacted in 2022, contains a provision allowing employer-sponsors of certain retirement plans to offer “pension-linked” emergency savings accounts […]
Many employers rightly proclaim that their employees are their most valuable assets. If this holds true for your organization, it stands to reason that paying those employees consistently and accurately is among the most important things you must do. Unfortunately, payroll errors plague many employers. Among the biggest dangers of inaccurate payroll administration is that […]
It’s safe to say that “gig workers” are firmly ensconced in the U.S. economy — especially in certain industries. And we don’t mean only those helpful folks who drop off dinner at the front door or give you a ride home from the restaurant. Nay, many kinds of independent contractors are available to serve employers, […]
Although traditional IRAs and Roth IRAs have been around for decades, the rules involved have changed many times. The Secure 2.0 law, which was enacted at the end of 2022, brought even more changes that made IRAs more advantageous for many taxpayers. What hasn’t changed is that they can help you save for retirement on […]
by David Lam, CISSP, CPP | “As the rate of digital transformation continues to accelerate across all industries, poor cybersecurity remains a pressing threat to employers and benefit plan sponsors. Awareness of nine common cybersecurity myths can help employee benefit plan stakeholders better understand their plan’s risk posture and take steps to make improvements…”
In Notice 2023-75, the IRS recently announced the dollar limits and thresholds for qualified retirement plans in 2024, reflecting the latest cost-of-living adjustments. Here are some relevant amounts to be aware of: Contribution limits for 401(k)s and other defined contribution plans. The annual limit on contributions will increase to $23,000 (up from $22,500) for 401(k), […]
The IRS recently released Revenue Procedure 2023-24 to announce the 2024 cost-of-living adjustments (COLAs) for various tax-related limits applicable to many popular employer-provided fringe benefits. Here are some highlights: Health Flexible Spending Accounts (FSAs). For 2024, the dollar limit on employee salary reduction contributions to health FSAs will be $3,200 (up from $3,050 in 2023). […]
Most businesses today need to offer a solid benefits package. Failing to do so could mean falling behind in the competition to hire and retain talent in today’s tight job market. When it comes to retirement benefits, however, smaller companies may struggle with the financial and administrative burdens of sponsoring their own plans. The good news […]