Your max contributions to 401(k) plans for 2025 increase to $23,500, up from $23,000 for 2024, according to the IRS. The tax agency also issued technical guidance regarding cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2025. The limit on annual contributions to an IRA remains $7,000. The […]
The following is not a comprehensive list of all changes, but a summary of key adjustments that will affect a wide range of taxpayers: Standard deductions. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. For married couples filing […]
The Fed has decided to lower the target range for the federal funds rate by 1/2 percentage point (50 basis points). In a statement, the Fed said that it “has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly […]
The Secure 2.0 Act allows for features in employer retirement plans to encourage their use. The changes are designed to encourage employees to contribute to 401(k) or 403(b) plans, allowing you to offer small financial incentives to employees. If employers use a little financial motivation, it’s considered part of employees’ income and is subject to […]
It’s long been a policy that employees are exempt from the Fair Labor Standards Act’s minimum wage and overtime protections if they are employed in a bona fide executive, administrative or professional capacity. To fall within this EAP exemption, an employee generally must meet three tests, according to the DOL. Be paid a salary, meaning […]
Incentive trusts, like other trusts, are established by a grantor who names a trustee and funds the trust with the grantor’s assets. The difference between incentive trusts and other trusts is that distributions are made only when a beneficiary achieves certain contingencies — such as attaining a college degree or getting married — that are […]
The perfect storm is here, combining a disruptive political and economic environment, a generational workplace shift and incredibly quick transformations in technology. Businesses are struggling to keep up with the changes they need to make within the time frame they need to make them. One result of this storm is that companies are more often […]
A warning alert by the Internal Revenue Service addresses a new emerging scam involving the purchase of clean energy tax credits. In their recent findings, it appears that there are cases of tax return preparers misrepresenting the rules for claiming clean energy credits under the Inflation Reduction Act (IRA). The transferability provision of the IRS […]
In a world where education expenses keep rising and employers must struggle to attract and retain staff, a Section 127 educational assistance program makes a lot of sense: Workers get the education to help them grow in their careers, and businesses get a well-trained and loyal workforce. The key is knowing how these plans work. […]
What tax deductions, programs and housing allowances are available and unavailable to you, homeowner? Let’s delve into several that the IRS wants you to consider: Deductible house-related expenses — your mortgage may bundle other costs involved in owning a home. Here are some to deduct: State and local real estate taxes, which are subject to […]