Spouse Was Designated Beneficiary Of Roth IRA For Purposes Of Minimum Distribution Rules
Posted by Kim Chen on July 1st, 2019
PLR 201923016 In a Private Letter Ruling, IRS determined that a surviving spouse was the designated beneficiary of the taxpayer’s Roth IRA for purposes of the Required Minimum Distributions (RMDs) rules. A retroactive election allowed by a state court which caused other beneficiaries than the surviving spouse to potentially exist was not effective to change […]
Tax-free fringe benefits help small businesses and their employees
Posted by Kim Chen on June 28th, 2019
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Those that are tax-free are especially attractive to employees. Examples include many types of insurance (health, disability, long-term care, life) and assistance plans (dependent care, adoption and educational), subject […]
When holiday gifts and parties are deductible or taxable
Posted by Kim Chen on June 24th, 2019
It’s a great time of year for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees aren’t included in their taxable income yet are still deductible by you. […]
There’s still time for small business owners to set up a SEP retirement plan for last year
Posted by Kim Chen on June 20th, 2019
If you own a business and don’t have a tax-advantaged retirement plan, it’s not too late to establish one and reduce your 2018 tax bill. A Simplified Employee Pension (SEP) can be set up for 2018 as long as you do it before your 2018 income tax return filing deadline. You have until the same […]
Turn down an inheritance using a qualified disclaimer
Posted by Kim Chen on June 13th, 2019
If you’re about to receive an inheritance and your net worth is already high, you might save gift and estate taxes by using a qualified disclaimer to refuse the bequest. The assets will then bypass your estate and go to the next beneficiary. Despite today’s lofty estate tax exemption, wealthier people, including unmarried individuals who […]
