Archive for June, 2012
by Jim Wagoner, CPA | Partner, Director of Tax Services Group | Felicia Rupp | Member of the Tax Services Group
There are several tax provisions (the Bush Tax Cuts) scheduled to expire at the end of 2012. We have summarized the change regarding the Child Tax Credit and Dependent Care Tax Credit below. Future tax update articles will include more information on the other expiring tax provisions.
by Larry K. Greenwalt, CPA | Chairman of the Board and
Anita Sherman, CPA | Managing Partner
During the past two months we have been discussing the ownership transition process, particularly as it relates to family owned businesses. As previously discussed, transition is a process that should occur over time in accordance with a well thought out, coordinated plan. But what about children who are not involved in the business? This often presents a dilemma that results in inaction-but it needn’t be that way!
by Stacey L. Spencer, QKA | Manager, Employee Benefit Services Group
A hardship withdrawal allows emergency access to one’s 401(k) account balance. The key here is emergency access. Hardship withdrawals are only allowed for an immediate, pressing need, and only when all other means of obtaining funds have been exhausted. If the 401(k) plan also allows loans, the participant must first take all available loans prior to applying for a hardship distribution. Additionally, the hardship withdrawal can only be for the amount of the immediate financial need. One cannot request a hardship withdrawal in anticipation of a future need, even a continuing need such as mortgage payments or college tuition.