Tag: Murfreesboro

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Retirement Savings Beyond the 401(k)- Series Introduction

One common question that I receive from individual tax clients and my wife (Megan) gets from financial planning clients is, “What retirement savings options are available to me outside of an employer sponsored retirement plan?” A few of the reasons why someone might be interested in other types of personal retirement accounts can include investment choice flexibility, potential tax savings, or becoming self-employed.

This is a very important topic and I want to spend plenty of time thoroughly explaining the ins and outs of some of the IRA types that exist, so we will be working through this in a three part series over the upcoming days. We will cover these three key segments of IRAs and how each could benefit you:

  • Roth IRA
  • Traditional IRA
  • SEP IRA/SIMPLE IRA

We will discuss the qualifications of who can participate, dollar limits, income phase-out concepts, and why some of these might be a good option for you whether you are an employee who is already in a 401(k) plan or if you are self-employed and need to focus on putting back some money for retirement.

I hope that you will “Like” the Wisdom of Wealth Blog Facebook page and visit the Wisdom of Wealth website to sign up for notifications of new blog posts. I am excited to share some valuable information with you throughout this series, and hope that you will follow along!

Thanks for your support!

-Wes

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PPP Loan Update- New Forgiveness Rules

During the COVID-19 pandemic, many small businesses were able to work through their local banks and SBA lenders to access funds through the Payroll Protection Program (PPP). In response to a national emergency, this program was created quickly and many revisions to the terms have been made along the way. The most recent changes to the forgiveness terms were passed in the Paycheck Protection Program Flexibility Act and signed into law on June 5.

Many of my small business owner clients and friends were able to obtain funding through this program, and are now preparing to apply for forgiveness. If you are a small business owner and have not yet applied for the PPP program and feel like you might be eligible, act quickly. The deadline to apply through an approved SBA lender is June 30. I wanted to share with you some of the most important term revisions that the June 5 Flexibility Act created.

  • Extends the deadline to use PPP funds from June 30 to December 31, 2020.
  • Reduces the proportion of the loan that must be used for payroll-related costs from 75% to 60%.
  • Payback terms extended from two years to five years. No retroactive application of this rule for notes that were in place prior to June 5.
  • Eliminates the original forgiveness penalty based on businesses being required to maintain employee headcount at the same level as pre COVID-19.
  • Gives businesses 10 months to apply for loan forgiveness with their loan originator.
  • Defers loan payments of any kind until a forgiveness decision is made on each case by the SBA and original lender.
  • The period of time allowed to spend funds on allowable business expenses and apply for forgiveness is extended from the original 8 week period to 24 weeks from the date of loan issuance.
  • Businesses who received PPP funds can now utilize the payroll tax deferral rules that were included in the CARES Act and previously excluded PPP borrowers.

Your CPA business advisor can be a valuable resource in helping you with the application for PPP loan forgiveness.

Be sure to follow the Wisdom of Wealth blog for more news updates and articles from Bynum CPA, PLLC and Arc Accounting, PLLC.

Check out www.bynumcpa.com and www.arcactg.com to learn more about professional services offered.