Retirement Planning – Bregante+Company LLP

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 Mike Ruiz Murillo|November 9th, 2022|Categories: IRS, Retirement Planning|Comments Off

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 Robert Ntume|June 16th, 2022|Categories: Announcements, Retirement Planning|Comments Off

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 Daniel Novak|November 5th, 2018|Categories: Individual Tax, IRS, Retirement Planning|Comments Off

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:

The worker must be free from the control and direction of the hiring company in performing the work.
The work must take place outside the usual course of the business of the hiring company’s business.
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 Mimi Lee|June 6th, 2018|Categories: Accounting & Bookkeeping, Announcements, Business Operations, Business Tax, Individual Tax, IRS, Real Estate, Retirement Planning|Comments Off

2017 Tax Planning Guide

With the end of the year rapidly approaching, we are once again reaching out to share our annual Tax Planning Guide with you. The 2017/2018 Tax Planning Guide is available here www.webtaxguide.net/Bregante.

Sweeping tax law changes that will impact individuals and businesses are outlined in the proposed Tax Plan released by the House Republicans on November 2, 2017 including:

Proposed decreases to certain individual and most business income tax rates
Repeal of a number of personal tax breaks including the deduction for state income taxes which can be significant for most California residents, reduction in the amount of new acquisition debt for principal residences that qualifies for the mortgage interest deduction, elimination of the mortgage interest deduction for […]

By Jeff Belingheri|November 13th, 2017|Categories: Accounting & Bookkeeping, Announcements, BCo Community News, Business Operations, Business Tax, Individual Tax, Nonprofit Organizations, Retirement Planning|Tags: tax planning guide|Comments Off