Retirement Planning

Qualified Charitable Distributions Allow Eligible IRA Owners Up To $100,000 In Tax-Free Gifts To Charity

 

On November 17, 2023, the Internal Revenue Service reminded individual retirement arrangement (IRA) owners age 70½ or over that they can transfer up to $100,000 to charity tax-free each year.

These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the end of the year.  And, for those who are at least 73 years old, QCDs count toward the IRA owner’s required minimum distribution (RMD) for the year.

 How to set up a QCD

Any IRA owner who wishes to make a QCD for 2023 should contact their IRA trustee soon so the trustee will have time to complete the transaction before the end of the year.

Normally, distributions from a traditional IRA are taxable when received.  With a QCD, however, these […]

By |November 20th, 2023|Categories: IRS, Retirement Planning|Comments Off on Qualified Charitable Distributions Allow Eligible IRA Owners Up To $100,000 In Tax-Free Gifts To Charity

401(k) Contribution Limits Increase to $22,500 for 2023, and IRA Limit Rises to $6,500

 

The IRS is raising the bar on retirement savings by increasing the annual contribution limits to 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan.  To the plans just mentioned, participants can look forward to a $22,500 contribution limit for the 2023 tax year, which increased from the previous $20,500 limit (2022 tax year).  Also in 2023, IRA contributions will increase to $6,500, from $6,000 (2022 tax year).

    • Catch-up contributions towards 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increase to $7,500, up from $6,500 in 2022.
    • SIMPLE plans increase to $3,500, up from $3,000 in 2022.

For additional detail on allowed contributions to all retirement plans, please refer to the following IRS press release here.

By |November 9th, 2022|Categories: IRS, Retirement Planning|Comments Off on 401(k) Contribution Limits Increase to $22,500 for 2023, and IRA Limit Rises to $6,500

CalSavers Retirement Savings Program Final Registration Deadline is June 30, 2022

 

The CalSavers Retirement Savings Program is a by-product of state-mandated retirement legislation that was launched in July 2019 as part of a phased rollout over three years with the goal of improving the financial security of Californians working in the private sector. It is sponsored by the State of California, facilitated by businesses, and funded by employee savings.

This rollout phase applies to employers with 5 or more employees who do not offer a retirement savings plan, self-employed individuals, and others who want to save extra. Savers participate by contributing to a Roth Individual Retirement Account (IRA) that belongs to them via payroll deductions on a post-tax basis. An option is also available for CalSavers participants who want to recharacterize their account to a traditional IRA where contributions are made on […]

By |June 16th, 2022|Categories: Announcements, Retirement Planning|Comments Off on CalSavers Retirement Savings Program Final Registration Deadline is June 30, 2022

2019 Annual Contribution Limit Increase for Retirement Plans

This week the IRS announced increases to the annual contribution limits for 401(k) and IRA accounts, effective January 1, 2019.   Both limits increased by $500, so the new annual contribution limit is $19,000 for 401(k) plan accounts and $6,000 for IRA’s.

For detail on what else changed see the IRS news release here.

By |November 5th, 2018|Categories: Individual Tax, IRS, Retirement Planning|Comments Off on 2019 Annual Contribution Limit Increase for Retirement Plans

California Supreme Court Ruling Significantly Limits Independent Contractor Classification

The California Supreme Court has established new criteria for classifying workers as Independent contractors.   In Dynamex Operations West, Inc. v. Superior Court, the Court rejected the previous multi-factor test and instead issued a rigid 3-factor test, called the “ABC” test.

Under the ABC test, each of the following three factors must be met in order to classify a worker as an independent contractor:

  1. The worker must be free from the control and direction of the hiring company in performing the work.
  2. The work must take place outside the usual course of the business of the hiring company’s business.
  3. The worker is customarily engaged in an independent established trade, occupation or business.

This ruling will no doubt have a significant impact on gig companies in the Bay Area (Uber, Lyft, and DoorDash, etc.), […]

By |June 6th, 2018|Categories: Accounting & Bookkeeping, Announcements, Business Operations, Business Tax, Individual Tax, IRS, Real Estate, Retirement Planning|Comments Off on California Supreme Court Ruling Significantly Limits Independent Contractor Classification
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