The recent enactment of the Patient Protection and Affordable Care Act of 2010, in combination with the Health Care and Education Tax Credits Reconciliation Act of 2010 (collectively known as the “Health Care Act” or the “Act”), significantly changes the nation’s health care landscape, and many of these changes will be carried out through substantial additions and alterations to the U.S. tax code.
Given the scope of this landmark legislation, this short summary is by no means a comprehensive review of the new law. As your tax professionals at CB&H continue to study the legislation, we will continue to keep you informed and up-to-date regarding how the Health Care Act will affect you and your business.
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Published April 13th, 2010 at 8:39 am in Compensation and Benefits, Employee Benefit Plans, Federal Tax Compliance, Health Care Reform with no comments
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The IRS recently released new Roth IRA conversion rules that provide any person, regardless of income level, with the opportunity to convert their individual IRAs to Roth IRAs in 2010. This conversion may be done by recognizing the entire Roth account value in 2010 or by dividing the income between the 2011 and 2012 tax years. For years after 2010, the Roth conversions will be allowed but will not have the two-year recognition opportunity for 2011 and 2012.
The rules also govern eligible rollover distributions from qualified employer retirement plans to Roth IRAs. An IRS notice (IRB 2009-39) outlines the specific requirements for the conversions and eligible rollovers from employer plans, such as pensions, profit sharing, and 401(k)s to Roth IRAs. The terms are summarized as follows:
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Published January 12th, 2010 at 2:54 pm in Compensation and Benefits, Employee Benefit Plans, Wealth Management with no comments
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Every year, the IRS issues new limits for the following year that apply to retirement plan contributions. On October 15th, they announced the cost of living adjustments for 2010 that apply to all the various plans, and for the first time in memory there were virtually no changes from 2009. This also will apply to recipients of Social Security benefits. Below is a brief list of the 2010 limits, noting whether or not there will be an increase applied:
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Published October 21st, 2009 at 10:23 am in 401(k) and 403(b) Plans, Compensation and Benefits, Employee Benefit Plans, Wealth Management with no comments
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Last month, the IRS issued guidance, in the form of proposed regulations, that would allow an employer suffering from “a substantial business hardship” to suspend its 3% safe harbor non-elective contributions to its 401(k) or 403(b) plan during a plan year, provided that the employer timely amends the plan and satisfies a number of other conditions.
Previously, an employer who had installed safe harbor provisions in their 401(k) plan, could only stop the required, fully-vested safe harbor contribution if the safe harbor was a “safe harbor match” allocation and at least a 30-day notice was provided to employees. Employers were also required to timely amend their plan document, make the safe harbor match contribution through the date of the safe harbor termination, and participate in non-discrimination testing of deferrals and match for that plan year using the “current year” testing method. Read complete post...
Published June 23rd, 2009 at 8:06 am in 401(k) and 403(b) Plans, Employee Benefit Plans, Employer Guidance with no comments
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