How to Prepare your company for the Close of the Plan Year and Welcome the New Year in Your 401(k) Plan
As the current year draws to a close, plan sponsors overseeing 401(k) plans have several essential tasks to complete to ensure a smooth transition from the old plan year to the new one. This guide provides insights into what you
What Are the Benefits of a Safe Harbor 401(k) Plan?
A safe harbor 401(k) plan is a retirement savings plan that has advantages for both employers and employees. Here’s why it’s a good choice: Easy Compliance: Safe harbor plans help employers by automatically passing certain annual tests. These tests, like
Understanding Compliance Testing for 401(k) Plan Sponsors
Compliance testing is a crucial annual responsibility for 401(k) plan sponsors, mandated by the Internal Revenue Service (IRS). It ensures that a company’s 401(k) plan remains equitable, not favoring owners and highly compensated employees (HCEs), and stays within IRS-prescribed limits.
An InSightful Guide to Profit Sharing for Plan Sponsors
At InSight, we encourage profit sharing as a valuable option within a 401(k) plan, allowing employers to make pre-tax contributions to their employees’ retirement accounts at the end of the year. Contrary to its name, profit sharing doesn’t necessitate that
Rising Litigation in 401(k)’s and Efforts to Support Business Owners
The landscape of litigation under the Employee Retirement Income Security Act (ERISA) remains highly active, as highlighted by the 48 new excess fee and performance lawsuits filed in 2023. While this is a decrease from the 89 complaints in 2022,
What is Tax Loss Harvesting?
Tax loss harvesting works by taking advantage of the tax code’s treatment of investment gains and losses. Here’s how it works: 1. Identify Investments with Losses: To start, investors review their investment portfolio to identify assets that have decreased in
Navigating the Intricacies of Taxes in Retirement: A Comprehensive Guide
Retirement – a phase that symbolizes relaxation and the freedom to delve into passions and hobbies without the regular hustle of a 9-to-5 schedule. However, this new chapter also brings forth unique financial scenarios, with taxes in retirement often being
Welcoming You to Financial Planning: A Simple Guide
Embarking on your financial planning journey might feel like a giant leap, but remember: every expert was once a beginner. Let’s take this step together, ensuring your financial stability and prosperity with some essential tips: 1. The Safety Net of
Why “Loses” can aid real estate investing?
Investors and property owners often welcome “losses” from depreciation on rental properties due to the tax benefits and financial advantages they offer. Here are several reasons why depreciation can be exciting for investors: Tax Deductions: – Depreciation allows property owners
Depreciation: Where does it come from?
The rules around depreciation for rental properties have their origins in tax laws and accounting principles. Depreciation is a method used to allocate the cost of tangible assets over the years in which they are used, reflecting the reduction of
DSNP: The Next Investment Playground for the Internet Revolution
The realm of social media has largely been dominated by centralized platforms like Facebook, Twitter, and Instagram. These platforms have redefined the way we communicate, but they also come with inherent challenges, from concerns over user privacy to the monopolization