Taxation of home health care benefits and family caregivers

Posted Leave a commentPosted in Financial Planning, Retirement, Tax Planning

When it comes to providing care in the home for a parent or relative, the tax implications can quickly become complicated. The IRS issued some guidance last year when payments come from Medicaid or similar programs under section 1915(c) of the Social Security Act. In short, these payments are not subject to self-employment tax but […]

Retirement saving basics for small businesses

Posted Leave a commentPosted in Employee Benefits, Retirement

Most working people today say that they expect to continue working past age 65. Yet the real world statistics tell a different story. At least half of us end our working career sooner than we expected, usually for medical reasons. My two related comments to small business owners are: It is simple and inexpensive to […]

Vanguard makes investment decisions easy

Posted 1 CommentPosted in Financial Planning, Investment, Retirement

I used to make a living as a Registered Investment Adviser and worked with Vanguard Group and other investment management firms. Now I provide generic standardized advice on investments when appropriate in the course of other accounting and financial planning services. My work now does not require a separate government registration as an investment adviser. Why […]

What the fiduciary rule means to us

Posted Leave a commentPosted in 401(k), Financial Planning, Investment, Retirement

Update on February 8, 2017: District Court in Texas upheld the fiduciary rule in this 81 page ruling in a case brought by the financial services industry groups. The court ruling seems to praise the new rule. Except in the unlikely event of very fast action by the Department of Labor it appears that the fiduciary […]

Pros and Cons of a One Person Pension Plan

Posted Leave a commentPosted in Retirement, Small Business, Tax Planning

This post summarizes the pros and cons of a one person private pension plan (sometimes called a “Solo Defined Benefit Plan”) for a successful small business owner as opposed to other self-employed retirement savings options. Pros Potentially larger immediate tax deduction; perhaps in the range of 3 times to 5 times larger than a 401(k) […]