REVERSE ROLLOVER: A BRIDGE OVER THE BACKDOOR ROTH TRAPDOOR

Scott Reddersen, CPA

Much has been written about the benefits of Roth versus Traditional IRAs, and over the past several
years a popular “backdoor Roth” conversion has made headlines as well. As a refresher, this method allows high-income taxpayers, who are excluded from making direct contributions to Roth IRAs, the ability to make non-deductible contributions to a Traditional IRA, and then immediately convert that amount to a Roth. The net effect, ideally, is minimal tax on any earnings between the date […]

April 29, 2015 Accounting, Tax Read more...

MARYLAND TAX AMNESTY PROGRAM

Jobe Dupre’, CPA

For Maryland individuals and corporations past due on filing Maryland tax returns and paying Maryland taxes, the Maryland legislature has passed a tax amnesty bill which is awaiting the governor’s signature.  The amnesty will apply to corporate and individual income taxes, withholding tax, sales and use tax or admissions and amusement tax and will waive all penalties and one half of the interest due.  Although the bill takes effect June 1, 2015, the amnesty period will be […]

April 15, 2015 Accounting, Tax Read more...

Fraud Detection

Larry Beebe, CPA

Everyone associated with an Employee Benefit Plan has a responsibility to search for and detect any existing or potential fraud.

The independent auditor in auditing the Plan’s financial statements “…is responsible for obtaining reasonable assurance that the financial statements, as a whole, are free from material misstatement, whether caused by fraud or by error.”
Management and the Plan trustees have the primary responsibility for the prevention and detection of fraud. If these individuals are to be responsible for preventing […]

April 11, 2015 Accounting, Forensic Accounting Read more...

NEW APPLICABLE FEDERAL RATES RELEASED FOR APRIL BY IRS

Jobe Dupre’, CPA

Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates (AFRs), are regularly published as revenue rulings.

The AFRs for April 2015 are as follows:

 

Annual
Semi-Annual
Quarterly
Monthly

Short-Term: 1-3 years
0.48%
0.48%
0.48%
0.48%

Mid-Term: >3 & up to 9 years
1.70%
1.69%
1.69%
1.68%

Long-Term: >9 years
2.47%
2.45%
2.44%
2.44%

March 26, 2015 Accounting, Tax Read more...

2015 ACA Reporting Requirements Summary for Employers

Shelby Hammond

W-2 Reporting of health care premiums paid by employers:

Who must report?

Employers who issued at least 250 W-2s for the preceding calendar year.
Union employees in a multiemployer union plan count in determining whether or not you issued at least 250 W-2s in the prior calendar year, BUT you are not required to report the cost of health care that was provided through the multiemployer union plan as W-2 premium reporting is suspended indefinitely for employers […]

February 25, 2015 Accounting, Audit, Benefit Plan Accounting Read more...

NEW APPLICABLE FEDERAL RATES RELEASED FOR MARCH BY IRS

Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates (AFRs), are regularly published as revenue rulings.

The AFRs for March 2015 are as follows:

Annual
Semi-Annual
Quarterly
Monthly

Short-Term: 1-3 years
0.40%
0.40%
0.40%
0.40%

Mid-Term: >3 & up to 9 years
1.47%
1.46%
1.46%
1.46%

Long-Term: >9 years
2.19%
2.18%
2.17%
2.17%

February 20, 2015 Accounting, Tax Read more...

Duration of Retiree Benefits: Terminable or Lifelong?

Ashleigh Hall, CPA

The Parties:
M&G Polymers USA, LLC (M&G), et al
vs.
Tackett et al

The History & The Issue:

In 2000, M&G purchased the Point Pleasant Polyester Plant and entered into a collective bargaining agreement (CBA) that included a related Pension, Insurance and Service Aware Agreement (P&I Agreement) with the Union. The P&I Agreement provided for retirees, surviving spouses, and dependents to receive full company contributions toward the cost of health care.

When the CBA and P&I Agreement expired, M&G announced that retirees would […]

February 19, 2015 Accounting, Benefit Plan Accounting Read more...

Managing Health & Welfare Plan Costs with a Claims Audit: A Case Study

Linh Crider, CPA, CFE

Health & welfare plan administrators are facing increasing costs and complexities. Reviewing your plan’s claims processing is often a helpful tool for understanding current costs incurred, ensuring accurate claims processing and payment, and managing health plan costs. We recently performed an audit for a client to help understand what contributed to an unexpected and significant dollar increase in medical claims costs. This post details the claims audit process and the insights gleaned.

Obtain the Data
Just as the […]

February 11, 2015 Accounting, Audit Read more...

AUDIT COMMITTEE: QUESTIONS TO ASK YOUR AUDITOR, PART 1

Posting by John Merchant
Boards of Directors or Trustees sometimes meet with the organization’s financial auditors as a group. Others elect to appoint a few members of their group to act as an Audit Committee that will deal directly with the auditors and report to the full Board. If you have been appointed to an Audit Committee, you may be wondering what information the auditors will normally provide and what additional questions you should ask.

There are certain “required communications” that […]

February 3, 2015 Accounting Read more...

QUALIFIED CHARITABLE DISTRIBUTIONS IN 2015 UNCERTAIN, BUT THERE IS AN OPTION!

Billy Thomas, CPA

Capitol Hill provided an excellent holiday gift in late-December 2014 with the Tax Extenders Package, otherwise known as The Tax Increase Prevention Act. One of the most talked about provisions of the Act was the extension of tax-free distributions from an Individual Retirement Account (IRA) for charitable purposes through December 31, 2014. This is called a Qualified Charitable Distribution (QCD) in tax terms.

A QCD is a very common tax savings strategy. Essentially, a taxpayer who is 70 […]

January 29, 2015 Accounting, Tax Read more...