Zinner & Co. Blog and Newsroom

Do You Apply the Five-year Test for Your Roth IRA? Here’s why you should

Posted by Zinner & Co. Tax Department on Feb 27, 2018 7:03:00 PM

The pros and cons of Roth IRAs, which were introduced 20 years ago, are well understood.ll money flowing into Roth IRAs is after-tax, so there is no upfront tax benefit.

As a tradeoff, all qualified Roth IRA distributions can be tax-free, including the parts of the distributions that are payouts of investment earnings.

To be a qualified distribution, the distribution must meet two basic requirements:

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Topics: Gary Sigman, Taxes - Planning, Rules and Returns, Retirement Planning & IRAs

But, It’s My Money! What you need to know before withdrawing funds from your 401k

Posted by Silvia McClellan, CPA on Feb 16, 2018 4:17:00 PM

Many folks faced the new year with a fresh-start mindset, new goals, and a handful of resolutions. For some, 2017 is still at the top-of-mind with credit card balance carry-overs and a loan or two. For others, the new year brings ideas of travel, home renovations, or major purchases. 

Regardless of the intent, oftentimes folks think they can simply borrow or withdraw from their 401(k) to pay for these things when their bank account is not liquid.  After all, the money is theirs and just “sitting” untouched.  So why not tap into the account – life is short, right?

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Topics: Retirement Planning & IRAs, IRS, Silvia McClellan

Take This Job and … Retire? 5 things you must consider before clocking out

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Dec 13, 2017 10:39:13 AM

While many entrepreneurs find satisfaction in owning their business and others simply love their jobs, most do not necessarily want to work for the rest of their lives. 

If you are such an entrepreneur, you are not alone. Many look forward to the idea of never having to work again, yet, the concern about whether there will be enough income to survive can’t be overlooked. This leads to the all-important question:  How much does one need to save for retirement?

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Topics: Gary Sigman, Taxes - Individual, Retirement Planning & IRAs

Split Ends: Why we're reading about 'gray divorce'

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Nov 24, 2017 7:32:00 AM

The Journal of Accountancy recently published an interesting article addressing the issue of 'gray divorce.'  Gray divorce refers to couples divorcing later in life and while a 30-something divorcing couple may be squabbling over custody, visitation, and credit card bills, those couples divorcing over age 50 are facing battles over retirement funds, the long-term residence, and a diverse portfolio of assets.

Oftentimes, divorcing couples believe that because the court suggests a particular division of assets, that it is what they must do. Couples may not realize that the court will decide in the absence of either party striking an agreement. When the court makes a decision for the couple, this may not be in the best interest for either.

Learn more about retirement and estate planning in Gary's blogs

Meeting with your CPA, whether as a couple or individually, will allow you to take a closer look at the reality of the tax and financial implications depending on how the assets are ultimately divided.  Also, your CPA will run scenarios, especially if one spouse was the higher earner or if one spouse did not work, which will greatly affect the financial future of both.

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Topics: divorce, Gary Sigman, Retirement Planning & IRAs

Why Your 401(K) Plan May Not Be the “End-All Be-All” For Your Retirement

Posted by Zinner & Co. Tax Department on May 30, 2017 3:46:00 PM

Since their inception via the Revenue Act of 1978, 401(k) plans have been great tools to help workers save for retirement. While a 401(k) plan has many advantages, there are also some drawbacks to them that one should consider when creating a comprehensive retirement-strategy.

The advantages of a 401(k)

The basic concept of a 401(k) plan is to allow workers to make pre-tax contributions to the plan from their paychecks. As a result, money contributed is not included in their taxable income for that year.

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Topics: Brett W. Neate, Taxes - Planning, Rules and Returns, Retirement Planning & IRAs

Money: How Much is Enough?

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Feb 25, 2017 12:44:42 PM

Financial planning is one of the most important (if not the most important) and concerning money topics that many folks share. How much should you have saved by a certain age? Should new parents start to save now for their newborn baby or is it ok to wait awhile? How much will you need in retirement for healthcare costs or everyday living?

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Topics: Gary Sigman, financial planning, Retirement Planning & IRAs

You Mean I Have to Take the Money?

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Oct 31, 2016 7:10:00 PM

What you need to know about required minimum distributions.

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Topics: Gary Sigman, Retirement Planning & IRAs

Relief from a Tax Penalty You May Not Have Even Known About

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Oct 10, 2016 4:06:56 PM

Did you know that small businesses that fail to file their annual retirement plan returns can face hefty fines of up to $15,000 per return? Our tax team has helped small businesses plan and prepare their annual plan returns. 

Fortunately, the Internal Revenue Service recognizes that some businesses may not even realize that this requirement applies to them. As a result, a tax penalty relief program allows them to pay $500 per return for late filings, up to a maximum of $1,500. The relief is aimed at small businesses whose plans cover a 100% owner or partners in a business partnership, and their spouses.

The U.S. Department of Labor also has a relief program for businesses that have employees. If you’re not sure whether the requirements—or the relief programs—apply to you, be sure to contact us. We can offer advice on how to remain in compliance with critical regulations and minimize your tax outlays. 

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Topics: Gary Sigman, Taxes - Planning, Rules and Returns, Retirement Planning & IRAs

Does the Sept. 30 IRA Beneficiary Deadline Apply to You?

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Sep 28, 2016 2:08:03 PM

September 30 marks another key date on the calendar regarding action needed to properly manage your own or an inherited IRA.  

If a loved one has passed, the final determination of who the “designated beneficiaries” of a that individual's IRA are must be completed by September 30 of the year following that person's death.

Related read: Important Considerations for Non-Spouse Beneficiaries

This determination is required for purposes of calculating the Required Minimum Distributions ("RMD") from a decedent’s IRA. A “designated beneficiary,” (a term defined in the Internal Revenue Code) is one who is set to receive IRA assets when the account owner dies and to any trusts that may list specific requirements.

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Topics: Gary Sigman, Retirement Planning & IRAs

Should I Set Up a SIMPLE IRA For My Employees?

Posted by Gary Sigman, CPA, M.Tax, PFS, AEP on Sep 23, 2016 2:24:34 PM

The October 1st deadline is fast approaching...

If you have less than 100 employees, you have until October 1 to set up a SIMPLE IRA plan for you and your employees.  Keep in mind that you can't have another qualified retirement plan (example: a 401(k), 403(b), profit sharing, or defined benefit plan) and a SIMPLE IRA.

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Topics: Gary Sigman, Taxes - Corporate & Business, Retirement Planning & IRAs


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