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Reilly, Penner & Benton LLP CPA’s Announce Acquisition of Emanuele & Haut CPA’s SC
Reilly, Penner & Benton LLP CPA’s (RPB) is pleased to announce the successful acquisition of Emanuele & Haut CPA’s SC (E&H), a strategic move that further enhances our commitment to providing exceptional accounting tax, accounting and financial advisory services to our clients. This acquisition marks an exciting chapter in our continued growth and dedication to delivering unparalleled expertise to businesses and individuals across the region. Emanuele & Haut CPA’s SC, a well-respected accounting firm with a strong presence in the community, has joined forces with Reilly, Penner & Benton LLP CPA’s to provide an even broader range of services and
Answers to your questions about 2023 limits on individual taxes
Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2023. Due to inflation, many amounts have been raised more than in past years. Below are some Q&As about tax limits for this year. Note: Not all tax figures are adjusted annually for inflation and some amounts only change when new laws
2023 limits and thresholds for 401(k)s and other qualified retirement plans
The IRS recently announced the 2023 dollar limits and thresholds for qualified retirement plans, reflecting the latest cost-of-living adjustments. Here are some relevant amounts to be aware of: Contribution limits for 401(k)s and other defined contribution plans. The annual limit on contributions will increase to $22,500 (up from $20,500) for 401(k), 403(b) and 457 plans, as well as for Salary Reduction Simplified Employee Pension plans (SARSEPs). The annual limits will rise to $15,500 (up from $14,000) for Savings Incentive Match Plans for Employees (SIMPLEs) and SIMPLE IRAs. Catch-up contributions. The annual limit on catch-up contributions for individuals age 50 and over will
IRA charitable donations: An alternative to taxable required distributions
Are you a charitably minded individual who is also taking distributions from a traditional IRA? You may want to consider the tax advantages of making a cash donation to an IRS-approved charity out of your IRA. When distributions are taken directly out of traditional IRAs, federal income tax of up to 37% in 2022 will have to be paid. State income taxes may also be owed. Qualified charitable distributions One popular way to transfer IRA assets to charity is via a tax provision that allows IRA owners who are age 70½ or older to direct up to $100,000 per year
EBSA increases penalties for ERISA violations
Any employer that sponsors a pension plan or a qualified retirement plan, such as a 401(k), is undoubtedly familiar with the Employee Retirement Income Security Act (ERISA). The law also applies to employer-sponsored health maintenance organization plans, Flexible Spending Accounts, and life and disability insurance. Established in 1974, ERISA holds plan fiduciaries responsible for their actions related to the maintenance of applicable benefits plans. The Employee Benefits Security Administration (EBSA), an agency of the U.S. Department of Labor (DOL), is required by law to annually adjust ERISA penalties for inflation. This year, effective for penalties assessed after January 14, 2022, the
The 401(k) contribution limit will increase in 2022
The IRS recently announced that the amount individuals can contribute to their 401(k) plans will increase in 2022. The tax agency has also announced other cost‑of‑living adjustments affecting dollar limitations for pension plans and retirement-related items for tax year 2022. Let’s look at some highlights. Rising limit First and foremost, the contribution limit for employees who participate in 401(k), 403(b) and most 457 plans, as well as the federal government’s Thrift Savings Plan, will increase to $20,500. That’s up from $19,500 in 2020 and 2021. The catch-up contribution limit for employees age 50 and over who participate in the plans mentioned remains
Are you ready for the upcoming audit season?
An external audit is less stressful and less intrusive if you anticipate your auditor’s document requests. Auditors typically ask clients to provide similar documents year after year. They’ll accept copies or client-prepared schedules for certain items, such as bank reconciliations and fixed asset ledgers. To verify other items, such as leases, invoices and bank statements, they’ll want to see original source documents. What does change annually is the sample of transactions that auditors randomly select to test your account balances. The element of surprise is important because it keeps bookkeepers honest. Anticipate questions Accounting personnel can also prepare for audit
