Ametrine Wealth’s Post

A new ruling by the IRS for one company could change the way you contribute to your 401(k) in the future. It promises to give employees more flexibility when it comes to financial planning but is it a good idea? In the comments is what you can expect if the ruling is expanded to everybody and what it could mean for your family. #IRS #401(k) #taxattorney #RJSLAWFirm

Did you know that you can now take your 401(k) matching contributions as Roth? Check out the details of how it works, and get more of your money in the tax-free bucket now, so that it has longer to grow for your benefit. #financialplanning #taxplanning #wealthmanagement

😵💫 Confused About Reporting Roth Employer Contributions for a Self-Employed S-Corp Solo 401k? The rules changed thanks to the Secure Act 2.0. Now employer contributions can be Roth too! 🆕 But how do you actually report everything properly to the IRS? 🔍📝 It's trickier than you think! In my latest video, I break it down step-by-step so you can handle those pesky tax returns like a pro...Watch Now 😎

An individual 401(k) plan is really nothing more than a combined profit-sharing plan and 401(k) plan implemented by a self-employed individual or small business owner with no full-time employees (unless the full-time employee is the owner's spouse). These plans, which went into effect after passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (2001 Tax Act), can allow for significant tax-deferred contributions.

Did you know you can choose a Roth option in your 401K plan? 🌟 Make tax-deferred contributions to a traditional 401K or opt for Roth contributions. While you pay taxes now, your earnings and contributions grow tax-free for the future! #401KOptions #Roth401K #RetirementPlanning #TaxFreeGrowth #FinancialStrategy

An individual 401(k) plan is really nothing more than a combined profit-sharing plan and 401(k) plan implemented by a self-employed individual or small business owner with no full-time employees (unless the full-time employee is the owner's spouse). These plans, which went into effect after passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (2001 Tax Act), can allow for significant tax-deferred contributions.

If you're managing a 401(k) plan, it's crucial to stay on top of amendment deadlines. Understanding the difference between interim and discretionary amendments can help ensure your plan remains compliant. 🔍 Here’s a quick breakdown: - Interim Amendments: Required to update your plan for law changes. These must be adopted (signed and dated) by the end of the second calendar year following the year the change was effective. - Discretionary Amendments: These are voluntary changes to your plan. These need to be adopted by the last day of the plan year that includes the amendment’s effective date. Notably, for plan years beginning after December 31, 2023, certain amendments that increase participant benefits (excluding increased matching contributions) can be adopted retroactively up to the employer’s tax return due date. There are also special rules for Safe Harbor plans—so be sure to review these carefully! 🔗 For more details, check out our latest blog: https://hubs.ly/Q02Kz0y30

Easiest tax win for self-employed people with no full-time employees: 1.) Set up a Solo 401K, I use Carry ($30/month) 2.) Contribute $23K as an employee, Roth or pre-tax 3.) Optionally contribute as an employer Roth or pre-tax, 92.35% of net earnings x 20% if you're a sole proprietor or single-member LLC or 92.35% of net earnings x 25% of wages if you elect S corp Example: $100K of earnings as a sole prop = $92,350 x 20% = up to $18,470 as an employer contribution Example: $100K of profit for the biz and a $50K salary that you pay yourself = $46,175 x 25% = up to $11,543 as an employer contribution 4.) Optionally do a mega backdoor Roth up to the $69K/year solo 401K plan limit between employee, employer, and after-tax mega contributions = Up to $69K/year that is all tax-free and tax-advantaged investing, it can also be invested in any asset class

3 important dates to be aware of as we approach year end for solo 401ks and IRAs. 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭𝘀𝘁, 𝟮𝟬𝟮𝟰: This is the deadline to establish your 401k plan. The account doesn't have to be open but the plan documents need to be executed by this date. 𝗠𝗮𝗿𝗰𝗵 𝟭𝟱𝘁𝗵, 𝟮𝟬𝟮𝟱: If your business is an S-Corp you have until this date to make contributions to your solo 401k for 2024. Employer contributions are tax deductible to the S-Corp. Employee Contributions reduce taxable income to you the employee. 𝗔𝗽𝗿𝗶𝗹 𝟭𝟱𝘁𝗵 ,𝟮𝟬𝟮𝟱: If your business is a Single Person LLC or sole proprietor you have until this date to make contributions to your solo 401k. This is also the deadline to open and contribute to IRAs, Roth IRAs and SEP IRAs. With the tail end of 2024 approaching, it's a good time to start thinking about these year end tax planning items. Happy Tax Planning!

Newly expanded tax credits are available for employers establishing first-time 401(k) plans for their employees that may offset most or all plan costs for the first three years. Learn more about these credits and the benefits to your business.