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04 / 10 / 2015 by Greg Freyman, CPA in Personal Tax

How Do Roth 401(K) Plans Work?

If your company offers a 401(K) plan to your employees, some of them may inquire about treating the contributions as Roth contributions. This is how you can be prepared to answer their questions about Roth 401(k) contributions.


What is a Roth 401(k)?

This type of employer-provided retirement account allows the employee to designate Roth contributions of up to $18,000 or $24,000 if 50 or older (reference IRC Section 402(g)) for the 2015 tax year. Similar to a Roth IRA, the contributions are made with after-tax dollars, but appreciate tax-free over time. A key benefit of the Roth 401(K) is that there is no income limit as is the case with a Roth IRA. You can earn $1 million and still be eligible.

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09 / 01 / 2015 by Greg Freyman, CPA in Business Tax

Year End Tax Planning Strategies For 2014

Many taxpayers often review tax planning strategies after the New Year. Before you say goodbye to 2014, there are several tax savings strategies that you may be able to implement now. If you wait until after December 31st, it will be too late.


Harvesting investment losses to offset capital gains

Investors can reduce their taxable income by realizing capital losses. After netting capital gains against losses, taxpayers can offset up to $3,000 of ordinary income and carry-forward the remaining amount for future years. Please note that the character of the investment as long-term versus short-term will impact the way in which gains and losses are netted.

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