by Daniel Kittell | Accounting News, News, Newsletter, Retirement, Retirement Savings, Tax Planning - Individual
As markets continue to experience turbulence driven by renewed tariffs, trade tensions, and global uncertainty, you might be rethinking how you save for retirement. One increasingly popular strategy is converting traditional retirement savings into Roth accounts. Although this approach isn’t suitable for everyone, periods of market decline may offer a more financially favorable window to consider such a move. Read on as we discuss this retirement strategy.
Market Volatility Is Reshaping Retirement Strategies
The stock market has been unpredictable lately. Factors like rising interest rates, inflation, and new trade tensions—especially related to tariffs between the U.S. and other countries—have caused ups and downs in investment values. This kind of economic uncertainty can generate doubt about traditional retirement savings plans.
As a result, more people are looking for ways to take advantage of the current market conditions. One popular strategy is to convert traditional retirement savings to a Roth IRA. Doing a Roth IRA conversion when the market is down can help you save on taxes in the future and make the most of a tough market situation.
What Is a Roth IRA Conversion?
A Roth IRA conversion means moving money from a tax-deferred account—like a Traditional IRA or 401(k)—into a Roth IRA. When you do this, you’ll owe regular income taxes on the converted amount for that year. Once in the Roth IRA, your investments can grow without being taxed, and you won’t pay taxes on eligible withdrawals during retirement.
Unlike traditional retirement accounts, Roth IRAs don’t require you to take minimum distributions (RMDs) each year, giving you more control over your money and tax planning later in life.
Why Market Downturns Make Roth Conversions Attractive
When the stock market drops, the value of your retirement investments often goes down too. While that might feel discouraging, it can actually be a smart time to consider a Roth IRA conversion.
Here’s why: when you move money from a Traditional IRA or 401(k) into a Roth IRA, you have to pay taxes on the amount you convert. If your investments are temporarily worth less because of the market downturn, you’ll pay taxes on a smaller amount. Then, when the market recovers, your investments can grow tax-free inside the Roth account.
For example, let’s say your retirement portfolio is worth $100,000, but a market drop brings it down to $80,000. If you convert while the account is lower, you’ll pay taxes on $80,000 instead of $100,000. Later, when the value grows back, you won’t owe taxes on that growth.
It’s a way to turn short-term losses into long-term gains—especially if you believe your investments will recover and grow over time.
Key Considerations Before Converting
While a Roth IRA conversion can be a smart move, it’s not always the right choice for everyone. Several factors should be evaluated before making a decision:
- Current vs. Future Tax Bracket
If you expect to be in a higher tax bracket later in life—either due to RMDs, Social Security benefits, or changes in tax law—converting now at a lower tax rate can be beneficial. On the other hand, if you anticipate a lower income in retirement, the upfront tax cost may outweigh the benefits. - Ability to Pay the Taxes
Ideally, you should pay the conversion taxes using funds outside of your retirement account. This lets you keep your retirement savings intact and growing tax-free. Using your IRA or 401(k) to pay taxes could reduce your future retirement income and may even result in penalties if you’re under 59½. - Long-Term Time Horizon
A Roth conversion generally works best when your money can stay invested for many years. This gives your investments time to grow without tax. Because of this, it’s usually more effective for younger savers or anyone who doesn’t need to tap into their funds for at least 10-15 years.
Is Now the Right Time?
With the current ups and downs in the market, this could be a smart time to consider moving funds into a Roth IRA. If your investments have temporarily dropped in value, converting now might reduce the taxes you’ll owe and allow more room for tax-free growth later.
That said, retirement decisions depend on your unique situation. Speaking with a financial planner or tax expert can help you weigh the pros and cons and decide if a Roth conversion supports your long-term financial strategy.
by Daniel Kittell | Accounting News, Business Growth, Industry - Professional Services, News, Newsletter, Professional Services, Small Business
The professional services industry is undergoing a significant transformation in 2025, driven by rapid advancements in AI and automation. As firms seek greater efficiency, enhanced decision-making, and improved client service, AI-powered solutions are reshaping how businesses operate by streamlining operations, optimizing resources, and ultimately boosting profitability. Here’s how AI and automation are shaping the professional services sector in 2025.
AI-Powered Digital Assistants Improve Productivity
One of the most immediate ways AI is transforming professional services is through generative AI-powered digital assistants. These smart tools manage repetitive, time-consuming tasks, allowing professionals to focus on high-value activities.
- Appointment Scheduling: AI can automatically schedule meetings, send reminders, and reschedule conflicts without human intervention.
- Report Generation: AI-powered tools can compile and analyze large datasets to generate detailed reports in seconds.
- Data Retrieval: Instead of manually searching for files, AI can instantly pull relevant data and summarize key insights.
By reducing administrative burdens, firms can increase efficiency, reduce operational costs, and allow professionals to focus on client service and strategic initiatives.
AI in Finance: Enhancing Productivity, Strategy, and Compliance
AI is also transforming financial management within professional services firms by enabling CFOs and finance teams to take a more proactive and strategic role.
- Advanced Forecasting: AI analyzes real-time financial data to predict future trends, cash flow fluctuations, and investment risks.
- Compliance Monitoring: AI-powered systems can detect anomalies, fraud, and compliance risks in financial transactions before they become major issues.
- Enhanced Decision-Making: AI-driven insights help finance teams optimize resource allocation and improve profitability strategies.
In 2025, finance leaders must go beyond simple automation and use AI to drive productivity, ensure compliance, and support business growth.
Integrated Talent Management
To attract and retain top talent, organizations are prioritizing end-to-end talent management platforms that span the employee lifecycle—from hiring to retirement.
These platforms leverage AI and automation to create a seamless workforce experience, including:
- AI-driven performance tracking and analytics to assess employee engagement.
- Automated learning and development programs tailored to individual career paths.
- Predictive analytics to anticipate workforce needs and reduce turnover.
By integrating HR, performance management, and workforce planning into a single AI-powered system, firms can improve talent retention, reduce hiring costs, and boost employee satisfaction.
AI-Powered Recruitment and Onboarding
Recruiting and onboarding processes are being dramatically improved with AI-driven solutions that help firms find and retain top talent more efficiently.
- AI Resume Screening: AI tools can quickly scan and analyze thousands of resumes, identifying the most qualified candidates based on job requirements, reducing the need for manual review by HR personnel.
- Automated Interview Scheduling: AI-powered scheduling tools coordinate interviews without the need for email communication, which shortens the time it takes to complete the hiring process.
- Onboarding Acceleration: AI-driven chatbots and digital assistants guide new hires through paperwork, company policies, and training programs, getting them acclimated quickly while minimizing the need for HR teams to spend extensive time on repetitive tasks.
- Optimized Workforce Planning: AI analyzes hiring trends and workforce data to help companies make data-driven hiring decisions, preventing over-hiring or under-hiring and ensuring cost-effective workforce scaling.
With AI-powered recruitment and onboarding, firms can reduce hiring time and administrative expenses, streamline HR operations, and improve overall workforce efficiency as well as the employee experience.
Flexible Workforce Models Gain Traction
The rise of AI and automation is also pushing professional services firms to adopt more flexible work models. Many firms are embracing the gig economy and using freelancers or independent contract workers to fulfill project-based needs.
- On-Demand Hiring: AI-powered platforms match firms with skilled freelancers or contract workers for short-term projects.
- Scalability: Businesses can scale their teams up or down as needed, improving cost efficiency and responsiveness.
- Hybrid Workforces: AI helps manage remote, in-office, and freelance employees, ensuring smooth collaboration across different work arrangements.
By leveraging flexible workforce models, which tend to be a good fit for professional services, firms can remain competitive and cost-effective in an evolving industry landscape.
By integrating AI into daily operations, professional services firms can boost efficiency, improve decision-making, and foster long-term success in 2025.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement
Medicare is undergoing significant changes in 2025, impacting costs, prescription drug coverage, telehealth access, and caregiver support. Retirees should prepare for these updates to manage their healthcare expenses effectively. Below, we break down the key Medicare changes for 2025 and what they mean for beneficiaries.
Higher Costs for Medicare Parts A and B
Medicare costs are rising in 2025, impacting premiums, deductibles, and potential out-of-pocket expenses for beneficiaries. The Part A deductible—which covers hospital stays, skilled nursing facility care, inpatient rehabilitation, and hospice services—increased from $1,632 to $1,676, while the Part B deductible—which covers doctor visits, outpatient care, and preventive services—went up from $240 to $257.
Although most seniors don’t pay a premium for Part A, Part B requires a monthly premium, which increased from $174.70 last year to $185.00 this year. However, higher-income beneficiaries may pay significantly more—up to $628.90 monthly.
In addition to these costs, Part A and Part B include copayments and coinsurance, which can further impact healthcare expenses. Understanding these changes can help you budget for medical costs and avoid unexpected expenses.
Cap on Out-of-Pocket Prescription Drug Costs
A major win for retirees in 2025 is the implementation of a $2,000 cap on out-of-pocket prescription drug costs under Medicare Part D. This is part of the Inflation Reduction Act, designed to reduce the financial burden of high-cost medications.
Previously, there was no cap on what retirees paid for prescriptions. Under the new rule:
- Once a retiree reaches $2,000 in out-of-pocket drug costs, Medicare will cover the rest for the remainder of the year.
- This change eliminates catastrophic coverage phase expenses, reducing financial strain for those needing costly medications.
Seniors with high prescription drug costs should explore Medicare Part D plans that align with their medication needs.
Expiring Telehealth Benefits
Telehealth services became widely accessible during the COVID-19 pandemic, but Medicare’s expanded telehealth benefits are set to expire at the end of 2024 unless Congress takes further action.
- In 2025, Medicare beneficiaries in rural areas may face limitations on virtual care access.
- Some telehealth services will no longer be covered for patients receiving care at home.
- Many mental health and specialist consultations may require in-person visits instead of virtual appointments.
Retirees who frequently use telehealth should check with their providers before these changes occur.
Additional Resources for Family Caregivers
Medicare is increasing support for family caregivers, who often provide essential care to aging relatives. Expanded benefits include:
- Inpatient respite care programs for beneficiaries receiving hospice services. To reduce caregiver burnout, the patient receiving hospice care can stay in a Medicare-approved facility for up to five days at a time.
- Training and education for family members assisting with medical care. This includes medication administration, personalized care techniques, and more. Medicare covers some of this training, but the beneficiary is responsible for 20% of the Medicare-approved amount plus the Part B deductible.
- Access to support groups and counseling services.
New Medicare Program for Postal Service Retirees
Starting this year, U.S. Postal Service retirees will transition to a new Medicare program under the Postal Service Health Benefits (PSHB) system. The program aligns postal retirees with standard federal employee retirement healthcare policies and may reduce the costs for some retirees by integrating benefits between Medicare and their federal health plan. Eligible retirees are required to enroll in Medicare Part B for continued health coverage.
by Daniel Kittell | Accounting News, Industry - Veterinary Medicine, News, Newsletter
As veterinary medicine continues to evolve, 2025 promises to be a transformative year. Industry professionals face emerging legislation, possible new roles, energized investor interest, and shifting dynamics in the pet insurance market. Here are the top trends shaping the field and what they mean for veterinary practices.
The People and Animals Wellbeing (PAW) Act
Introduced by Congresswomen Deborah Ross and Claudia Tenney in September of last year, the People and Animals Wellbeing (PAW) Act aims to expand access to veterinary care for underserved communities. The bill proposes federal funding for mobile clinics, subsidies for low-income families, and grants for practices serving rural areas.
The PAW Act has the potential to redefine how and where care is delivered, making veterinary services more accessible. Practices should keep an eye on the bill’s progress, as it could open funding opportunities and partnerships while increasing competition in traditionally underserved markets.
A New Industry Role
In a groundbreaking move, Colorado has introduced a midlevel practitioner role within the veterinary field—the Veterinary Professional Associate (VPA). This role is designed to fill the gap between veterinarians and veterinary technicians, providing a cost-effective solution to workforce shortages. A VPA’s responsibilities include conducting routine exams, prescribing medications, and performing minor surgical procedures under a supervising veterinarian’s guidance.
The creation of this new role has sparked debate in the veterinary community. Supporters highlight its potential to alleviate staffing shortages and increase access to care. Critics, however, question whether VPAs’ training—which includes a master’s degree in veterinary medicine—will be sufficient for the responsibilities assigned to them. Also of concern is the possible impact the VPA role could have on the roles of existing veterinary professionals. As Colorado serves as a testing ground, other states may evaluate the program’s success before considering adoption.
Investor Interest in High-Growth Segments
Investors are increasingly targeting high-growth areas within the veterinary industry. De novo hospitals, emergency care, and mobile services are increasingly attractive investments due to their potential for scalability and high returns.
- De Novo Hospitals: New veterinary hospital startups are appealing for their ability to tailor services to local demand and implement cutting-edge technologies.
- Emergency Care: With pet owners prioritizing immediate access to care, emergency clinics are becoming an essential asset to the veterinary industry.
- Mobile Services: Mobile veterinary services cater to a growing demand for convenience and personalized care, especially among urban pet owners.
These high-growth areas provide strategic opportunities for veterinary practices looking to grow or attract investment.
Pet Insurance Market Consolidation
The pet insurance market is rapidly consolidating. Now that JAB Holding Company owns over 20 pet insurance brands operating in more than 10 countries, critical questions about pricing, policy standardization, and referral dynamics within these networks are surfacing.
While immediate changes are unlikely, consolidation could influence pricing models, treatment coverage, and approval for diagnostic tools. Practices may find themselves navigating tighter referral relationships, which could limit options for clients.
To mitigate risks, practices should:
- Diversify partnerships with multiple pet insurance providers.
- Evaluate contracts carefully to ensure alignment with business goals.
- Advocate for policies that balance affordability for clients with fair reimbursement rates for providers.
The broader challenge is creating pet insurance models that work for both providers and pet owners.
Preparing for the Future
This year could bring significant change to the veterinary industry, driven by legislative shifts, innovative roles, investor interest, and market consolidation. Practices that stay informed and proactive can turn these trends into opportunities for growth and improved care.
by Daniel Kittell | Business Growth, Industry - Construction, News, Newsletter
For construction companies, growth and profitability often hinge on that company’s ability to overcome progress barriers. Whether it’s delays in project timelines, inefficiencies in communication, or outdated practices, construction firms need innovative solutions to stay ahead. In the article below, we discuss how firms can transform challenges into opportunities for growth and higher profits.
Embrace Innovation to Drive Success
Construction firms that resist change risk falling behind, especially as competitors adopt new technologies to streamline operations and improve outcomes. One key area for innovation is project management. Modern construction project management software is specifically designed to address the industry’s unique challenges, enabling firms to:
- Enhance Coordination: Centralize project details to ensure that all stakeholders have access to up-to-date information.
- Stay on Schedule: Use real-time tracking tools to monitor progress and adjust workflows as needed to meet deadlines.
- Control Costs: Track expenses and allocate resources effectively to avoid budget overruns.
For example, implementing a project management platform will likely result in less miscommunication between office staff and field teams, leading to fewer costly mistakes and rework.
Streamline Operations with Connected Construction Management Solutions
Another move to break through progress barriers is adopting a connected construction management solution. These systems integrate various functions—such as scheduling, payroll, equipment tracking, and documentation—into a single, user-friendly platform. Benefits include:
- Improved Communication: Ensure that field workers and office staff can seamlessly share information in real time.
- Data-Driven Decision-Making: Utilize analytics to make informed decisions about project priorities and resource allocation.
- Increased Productivity: Automate repetitive tasks to allow teams to focus on more critical priorities.
For example, a connected solution could allow a field manager to instantly access the latest blueprints on a tablet while on-site. This would help to ensure alignment with the construction team and reduce downtime caused by outdated plans.
Overcoming Common Challenges
A significant barrier many construction firms face when embracing technology is the challenges in implementing new systems, including upfront costs, a steep learning curve for staff, and resistance to change. To address these issues:
- Invest in Training: Provide comprehensive training to ensure all employees are comfortable using new tools.
- Start Small: Implement one solution at a time, allowing teams to adapt gradually.
- Focus on ROI: Highlight how new technologies will reduce costs and improve efficiency over time.
Achieving Long-Term Growth and Profitability
Breaking through progress barriers requires firms to evaluate their current processes, identify pain points, and prioritize technology investments that deliver the greatest impact. By integrating modern project management software and connected construction management solutions, construction firms can:
- Complete projects on time and within budget.
- Foster better communication between teams.
- Enhance overall efficiency and profitability.
In an industry where delays and inefficiencies can significantly impact the bottom line, these solutions offer a clear path to sustained growth.
