If you have savings in a tax-deferred retirement account such as a traditional IRA or 401(k), you are required to start taking Required Minimum Distributions (“RMD”) from these accounts after you turn 70 ½ years old. The exact amount of your annual RMD is calculated annually based on your age and...
Many people limit their estate planning considerations to making a will. While a will may allow your estate to avoid probate, a trust may be a better estate planning tool depending on your circumstances. A living trust may provide additional flexibility for estate planning that a will does not of...
Many people are finally getting ahold of the tax changes that went into effect on January 1, 2016. While we still have a few months before most people have to file their personal income taxes, the new year is less than a month away. Before you can make tax and financial plans for the next year, i...
Contributing Author: Dianne Schechter The phrase “Gray Divorce” refers to divorces involving spouses over the age of 50 and who are typically members of the Baby Boomer generation. While the overall divorce rate has declined over the past 20 years, it has dramatically increased for this segment...
ESOPs (Employee Stock Ownership Plans) can benefit you, your employees and your company. In fact, Congress has enacted a series of remarkable tax incentives designed to encourage employers to adopt ESOPs. Of course, ESOPs are not for everyone. Some business owners are not particularly concerned ...
In most cases, a married couple's wealth is typically measured by their home, automobile, and pension assets. Because homes and automobiles are generally encumbered, a couple's pension is often the single most important marital asset. As a result, family law practitioners should be placing a high...
On Tuesday November 1, 2016, Staples announced the launch of its student loan repayment plan for its employees. Staples follows the new trend of employers who are offering student loan repayment as a workplace benefit for employees burdened by student loan debt. Student loan repayment programs h...
In an earlier blog, we wrote about the importance of early estate planning. Deciding to plan for your estate is the first step to avoiding costly estate planning errors. However, there are a number of other estate planning mistakes that may end up costing you and your family time and money. Retai...
The State of California recently enacted Assembly Bill No. 2833 (the “Act”), a new law that mandates additional public disclosure of information concerning fees and expenses paid by California Public Pension Plans (“PPPs”) with regard to their investments in private equity funds, venture funds, h...
There is one thing that is certain other than death and taxes. That is California does not have the best reputation as a business-friendly state. According to a recent report by CNBC, California was ranked as the least business-friendly state in the country. However, business owners in California...
The Department of Labor (DOL) may audit an employer sponsored benefit plan (generally retirement plans such as 401(k)s or defined benefit plans) at any given time to ensure compliance with applicable provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The audit process beg...
Many startups and newer companies rely on financial help from friends and family. Some business owners may ask for a loan to start the company. However, others ask for the money to be invested in the company in exchange for some ownership interest in the business. While this may seem like a fair ...
The United States District Court for the Eastern District of Michigan, Southern Division, recently recognized a retroactive QDRO. The case involved the 1993 divorce of Henry Patterson and Ardella Patterson. The divorce decree awarded Ardella half of her former husband's pension benefits, which he...
When putting together a contract for the first time, many business owners may turn to standard form contracts to make agreements between customers, vendors, and other businesses. Calling these contracts “standard” may make it seem like they will protect your interests and provide for any continge...
Most people think of estate planning as a very personal experience. After a lifetime of hard work, they feel entitled to distribute their assets as they see fit, without consulting their family. It can also be difficult for people to talk to their loved ones about their inevitable death and what ...
Contributing Author: Dianne Schechter If you are about to be divorced or legally separated and one of the assets to be divided is a retirement plan, then you most likely need a qualified domestic relations order (“QDRO”) (pronounced “qua'-dro”). A QDRO is a separate court order that is drafted ...
Congratulations on your decision to start a new company. Starting a new business may seem daunting but it can be incredibly rewarding to see your company succeed. One of the most important steps you can take is to decide how to establish your company. You may want to operate as a corporation or l...
On October 21, 2016, the IRS released Announcement 2016-39 (available here) allowing certain employer-sponsored retirement plans to make loan payments and hardship distributions to employees and certain members of their families who live or work in eligible counties of regions impacted by Hurrica...
Estate planning involves taking the steps necessary to make sure your family and loved ones will be taken care of in the future. This includes spouses, children, parents, and friends. Increasingly, this includes planning for pets as well. A pet trust is a legal document that provides for the care...
The following is an outline of the Internal Revenue Service's maximum dollar limitations applicable to employee benefit plans in effect in 2016 and 2017. The 2017 limitations differ only slightly from the 2016 limitations and become effective January 1, 2017. Maximum Dollar Limitations ...
Contributing Author: Dianne Schechter Federal law requires “qualified” plans under the Internal Revenue Code to pay retirement benefits in a special payment form unless the benefit plan participant chooses a different form and his or her spouse agrees to the choice in writing. This special paym...
Bill Cornwell and Tom Doyle lived in a brownstone in the West Village of Manhattan for more than 50 years. Cornwell was the sole owner of the four-unit apartment building. However, about ten years ago, Cornwell wrote a will leaving all of his belongings to his partner Doyle, including the brownst...
Small businesses in this country were built by hard work and dedication. Business owners have spent so much time building their companies that they may not be sure what the future will hold when they eventually have to hand the reigns to their children or grandchildren. The key to succession plan...
Commencing January 1, 2017, employees working for private-sector employers located in California that do not currently offer their employees participation in an employer-sponsored qualified retirement plan will have the opportunity to participate in the California Secure Choice Retirement Savings...
When a company is looking to hire new employees it may be a sign that the business is growing. With additional workers your company may be able to step-up production, increase sales and provide better customer service. Hiring new workers can also give you a financial bonus if you qualify for Cali...