The Deadline is Approaching for a Safe Harbor 401(k) Plan
The deadline to establish a 401(k) safe harbor plan in 2016 is
October 1. A 401(k) retirement plan with a
safe harbor provision can help employers maximize the salary deferrals of highly compensated employees. The safe harbor plan allows employers to:
Defer up to $18,000 with pre-tax payroll deductions (and an additional $6,000 if they are 50 years old and over).
Contribute a maximum of $53,000 through employer and employee contributions in 2016 ($59,000 if the catch-up provision applies).
Consider Roth 401(k) post-tax contributions as an option, regardless of income level.
Each month our firm sends a newsletter with useful updates and developments relating to our client's tax and accounting needs. Combined with our website, our goal is to keep our clients informed throughout the year.
Back-to-School Tax Tips
With the start of school, taxpayers should be aware of the following tax breaks and deductions available for qualifying expenses:
Federal and State Tax Relief to Individuals and Businesses Affected by South Louisiana Severe Storms and Flooding
The Internal Revenue Service announced Louisiana storm victims will have until Jan. 17, 2017, to file certain individual and business tax returns and make certain tax payments, today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.