Читать книгу Small Business Taxes For Dummies - Eric Tyson - Страница 34

A number of smaller tax-related bills passed in recent years made some changes that affect small businesses. These bills include the SECURE (Setting Every Community Up for Retirement Enhancement) ACT of 2019 as well as the COVID-19 relief bills. Here are the highlights of the SECURE Act that small business owners should be aware of:

 Small-business owners are eligible for up to $5,000 in tax credits when starting a retirement plan. This credit applies to new 401(k), profit sharing, SEP, and SIMPLE plans for small employers with up to 100 employees.

 More part-time workers can participate in company 401(k) plans. Previously, employees had to work at least 1,000 hours per year to take part in a company’s 401(k) plan. Now, workers who achieve at least 500 hours over three consecutive years may participate.

 You can withdraw up to $5,000 per parent penalty-free from your retirement plan for a “qualified birth or adoption distribution” for the birth or adoption of a child. This new provision waives the normal 10 percent early withdrawal penalty and allows you to repay the withdrawn money as a rollover contribution.

 Required minimum distributions (RMDs) from retirement accounts begin at age 72, not 70½. This gives you more options and flexibility, but delaying required distributions which are based upon your life expectancy may or may not be in your best long-term interests. It’s impossible to know for sure, but you and/or your tax advisor may want to crunch some numbers, which requires making some assumptions, to see what the optimal age is to begin your RMDs.

 You can make traditional IRA contributions past age 70½ so long as you continue earning employment income. This will bring the contribution rules for these accounts into alignment with those for Roth IRAs and 401(k)s.