Roth 401(k) accounts have been around for quite a while. But many employers still don’t offer them and many employees still don’t understand them. As the name implies, these plans are a hybrid — taking some characteristics from Roth IRAs and some from traditional employer-sponsored 401(k)s. When considering (or reconsidering) your retirement plan options, look into whether a Roth 401(k) would suit your employees.
Michael D. Machen, CPA, CVA
Recent Posts
It's Not Too Late: You Can Still Set Up A Retirement Plan For 2018
Posted by Michael D. Machen, CPA, CVA on Nov 12, 2018
If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider doing so this year. There’s still time to set one up and make contributions that will be deductible on your 2018 tax return!
Posted in Business Tax
Selling Your Business? Defer — and Possibly Reduce — Tax With an Installment Sale
Posted by Michael D. Machen, CPA, CVA on Oct 29, 2018
You’ve spent years building your company and now are ready to move on to something else, whether launching a new business, taking advantage of another career opportunity or retiring. Whatever your plans, you want to get the return from your business that you’ve earned from all of the time and money you’ve put into it.
Posted in Business Tax
Beware Of Unexpected Tax Liabilities Under New Accounting and Tax Rules!
Posted by Michael D. Machen, CPA, CVA on Sep 07, 2018
The Tax Cuts and Jobs Act (TCJA) contains a provision that ties revenue recognition for book purposes to income reporting for tax purposes, for tax years starting in 2018. This narrow section of the law could have a major impact on certain industries, especially as companies implement the updated revenue recognition standard under U.S. Generally Accepted Accounting Principles (GAAP).
Posted in Business Tax
Changes Ahead For 401(k) Hardship Withdrawal Rules
Posted by Michael D. Machen, CPA, CVA on Aug 01, 2018
Many employers sponsor 401(k) plans to help employees save for retirement. But sometimes those employees need access to plan funds well before they retire. In such cases, if the plan allows it, participants can make a hardship withdrawal.
Posted in Payroll, HR & Benefits
Choosing The Best Business Entity Structure Post-TCJA
Posted by Michael D. Machen, CPA, CVA on Jul 20, 2018
For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, including partnerships, S corporations, and, typically, limited liability companies (LLCs). The top rate, however, dropped only slightly, from 39.6% to 37%.
Posted in Business Tax
There are several different types of tax-free weekend events in the U.S. Some apply to Energy Star products or hurricane preparedness, or back-to-school shopping needs. This year the State of Alabama will be participating in the Back-to-School Sales Tax Holiday Weekend beginning Friday, July 20 through Sunday, July 22. Alabama’s 13th Back-to-School Sales Tax Holiday will begin at 12:01 a.m. on Friday, July 20, and end at midnight on Sunday, July 22.
Posted in Alerts
Which Intangibles Should Private Firms Report Following A Merger?
Posted by Michael D. Machen, CPA, CVA on Jun 15, 2018
2018 is expected to be a hot year for mergers and acquisitions. But accounting for these transactions under U.S. Generally Accepted Accounting Principles (GAAP) can be complicated, especially if the deal involves intangible assets. Fortunately, the Financial Accounting Standards Board (FASB) offers a reporting alternative for private companies that simplifies accounting for new business combinations, avoiding a lot of red tape.
Posted in Business Valuation
Items for new owners to resolve
Are you starting a new business venture or investing in potential opportunities in the marketplace? Before you make any commitments, be aware that there are numerous practical considerations from a business, tax and legal perspective. In other words, there is much more involved than just fronting the cash.
Posted in Business Advisory
A Net Operating Loss On Your 2017 Tax Return Isn't All Bad News.
Posted by Michael D. Machen, CPA, CVA on Apr 19, 2018
When a company’s deductible expenses exceed its income, generally a net operating loss (NOL) occurs. If when filing your 2017 income tax return you found that your business had an NOL, there is an upside: tax benefits. But beware — the Tax Cuts and Jobs Act (TCJA) makes some significant changes to the tax treatment of NOLs.
Posted in Business Tax