By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
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Types & Qualifications
Establishing a SIMPLE IRA plan for only a few employees
A SIMPLE IRA’s advantages for small companies include relative ease of administration and the ability of owner-employees to make larger contributions.
Stock-based compensation: Tax forms and implications
While the benefit of equity compensation packages is easy to understand, the same cannot be said of the tax implications, and this article provides a broad overview of them.
SECURE 2.0 developments and guidance for 2024
The 2022 act affected a wide array of retirement fund and pension plan provisions, with many changes taking effect as of this year. This article highlights many of the most noteworthy ones, along with relevant IRS guidance and congressional plans for technical corrections as of this writing.
Missed Sec. 83(b) elections: Partnership and LLC special issues
This discussion focuses on grants of profits interests in a partnership or LLC and the relevance of Sec. 83(b) elections.
Employee wellness plans: Some benefits may be taxable
The IRS’s Chief Counsel Advice 202323006 clarified that wellness benefit payments paid to employees from a fixed-indemnity wellness plan structured as a Sec. 125 cafeteria plan are gross income and taxable wages to the employees when payment is made.
Establishing a SIMPLE IRA plan for a company with only a few employees
A SIMPLE IRA may be ideal for smaller companies desiring to provide their employees a retirement plan.
2022 Arthur J. Dixon Memorial Award
G. Edgar “Eddie” Adkins Jr., CPA, received the 2022 Arthur J. Dixon Memorial Award, the highest honor bestowed by the accounting profession in the area of taxation.
Ukraine aid eligible for leave-based donations programs
Employees may exclude from gross income the value of leave donated to their employers funding payments to relieve victims of the Russian invasion of Ukraine.
IRS reproposes unified plan rule exception for multiple-employer plans
Proposed regulations provide an exception from the “unified plan rule” for multiple-employer plans consistent with the SECURE Act and give guidance on how to implement the exception.
Equity incentive plan considerations for startup companies
Careful planning upfront is needed to ensure the equity plan satisfies the goal of incentivizing and retaining employees while avoiding any pitfalls under the Internal Revenue Code.
Stock-based compensation cost-sharing regs. following Altera
The Supreme Court’s denial of Altera’s petition could have significant tax and financial reporting consequences for companies that have excluded SBC costs from CSA intangible development cost
pools.
How to preserve retirement plan company matches
CPAs can play a vital role in helping plan sponsors cut costs and make the best of a challenging situation so the business can keep its company retirement plans intact.
Sec. 457 government plan distributions compared to 401(k) distributions
This article examines the different contribution and distribution rules for the two types of plans.
Sec. 403(b) retirement plans: A comparison with 401(k) plans
Tax-exempt Sec. 501(c)(3) charities, public schools, and certain other entities can generally adopt either Sec. 403(b) or Sec. 401(k) retirement plans. While the rules applying to these plans are often substantially the same, there are many significant differences.
Multiple-employer plans for small businesses
This item discusses some of the conditions set out in the rule for an employer group or association to join together to establish an MEP and who can be covered under the plan.
Applying grandfather status to certain health care arrangements
Regs. Sec. 54.9815-1251 defines a grandfathered health plan as coverage provided by a group health plan, or a health insurance issuer, in which an individual was enrolled on March 23, 2010.
Another alert for IRAs investing in master limited partnerships
This article discusses what is needed to help clients who have an IRA invested in PTPs pay the correct amount of tax.
Issues in converting phantom stock plans to actual ownership
If the plan is changed in exchange for actual ownership, the results under Sec. 409A are vastly different for phantom stock plans, stock options,
and SARs.
Considerations for financial firms that waive investment fees for employees
This article discusses a few relevant questions that employers offering fee-free or reduced-fee investments should consider.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
