News

The IRS Raises 2023 Retirement Plan Contribution Limits

As they do each year, the IRS announced 2023 retirement plan increases as follows: 2022 2023 2023 Catch Up 401(k), 403(b) & 457 $20,500 $22,500 $7,500 Traditional or Roth IRA $6,000 $6,500 $1,000 SIMPLE IRA $14,000 $15,500 $3,500 SEP IRA $61,000 $66,000 N/A   Catch-Up Contributions Individuals aged 50 or older are allowed to make…
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IRS Announces Delay for Implementation of $600 Reporting Threshold for Third-Party Payment Platforms – Form 1099 K

On December 23, 2022, the Internal Revenue Service announced delay in implementation of the new $600 reporting threshold for third-party network’s Forms 1099-K.  As a result of this delay, third-party networks will not be required to report 2022 tax year transactions on a Form 1099-K to the IRS or the payee for the new $600 threshold amount. 

2023 Alabama Tax Cut for Retirees with 401k and IRA Distributions

Governor Ivy signed HB162 into law which exempts the first $6,000 of retirement plan distributions for taxpayers age 65 or older beginning January 1, 2023. This mirrors the taxation of defined benefit plans for other plans such as 401K or IRAs.  The exemption increases by $6,000 per year until it reaches $24,000 in 2026. The…
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Where Have All the Employees Gone?

The pandemic caused a major disruption in the US workforce. The Bureau of Labor Statistics reported August 2022 unemployment at 3.7%, roughly 6 million unemployed workers. Employers are struggling to fill 11 million open positions. At the same time, there are 2.5 million fewer people in the workforce post-pandemic.

Inflation Reduction Act of 2022

President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law on August 16, 2022. The IRA is a skinny version of the Build Back Better Act, which was passed by the House but failed to pass in the Senate last fall.  The 273-page IRA addresses climate, energy, healthcare, taxes, and IRS funding.  In this article, we are only covering a few areas that might affect our clients. We are also including a links to several articles that cover additional provisions. 

Now’s the Time to Revisit Your Buy-Sell Agreement – Will Your Company’s Buy-Sell Work at Today’s Valuations?

Valuations for most businesses have dramatically increased over the last few years. There is plenty of activity and cash in the M&A market. Industries (like engineering) have become targets for venture capital pushing valuations even higher. Many of the buy-sell agreements were set up when the business started, sometimes decades ago, and are no longer…
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Alabama Amends Alabama Accountability Act – Increased Alabama Income Tax Credit Available

Governor Ivey recently signed Senate Bill 261 into law, which increases the tax credit for contributions made to Scholarship Granting Organizations (“SGO”).  Effective in 2022, an Alabama taxpayer may claim up to 100% of the individual’s Alabama tax liability for contributions made to an SGO, not to exceed $100,000 per year. Prior to the 2022 amendment, the credit was limited to 50% of the taxpayer’s Alabama tax liability with a cap of $50,000.  For C corporations, the credit was also increased from 50% to 100% of the Corporation’s Alabama tax liability and is not subject to the $100,000 per year cap.

Unclaimed Property – Could some of it be yours?

We run this post periodically and, each time several people report finding funds held by the state. Also, we’re just happy to send something out that has nothing to do with COVID and the pandemic. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose…
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