by Daniel Kittell | Accounting News, IRS, News, Newsletter, Tax, Tax Planning, Tax Planning - Individual
Inheriting an IRA might feel like a financial win, but the rules today are different than they were just a few years ago. If you’re not up to date, an unexpected tax bill could catch you off guard. Here’s what changed, and how to plan around it.
Changes Made by the SECURE Act
The SECURE Act of 2019 eliminated the “stretch IRA,” which allowed inherited funds to grow tax-deferred for decades while keeping annual withdrawals relatively low. Now, many non-spousal heirs must withdraw the entire inherited IRA within 10 years of the original owner’s death.
This is the 10-year rule, and it can be a tax trap for non-spouse beneficiaries.
If the IRA is traditional, any withdrawals are taxed as ordinary income. If you wait and withdraw everything in year 10, it could push you into a much higher tax bracket.
Who Gets a Pass from the 10-Year Rule?
Not everyone is subject to the 10-year rule. The IRS created a category called “eligible designated beneficiaries.” Beneficiaries in this category can still stretch distributions over their life expectancy. They include:
- A surviving spouse
- A minor child of the deceased IRA owner (until reaching adulthood)
- A disabled beneficiary
- A chronically ill beneficiary
- A beneficiary who is no more than 10 years younger than the original owner
A surviving spouse has the most flexibility. They can roll the inherited IRA into their own IRA and treat it as their own account, which allows them to follow standard RMD rules based on their age.
Minor children who inherit an IRA can take RMDs based on their life expectancy until they reach age 21. After that, the 10-year rule kicks in.
Why the 10-Year Rule Can Be a Problem
The 10-year rule can be problematic for tax purposes. If you inherit an IRA with significant funds and you’re forced to withdraw it within 10 years, those withdrawals could push you into a higher tax bracket. And that, of course, means paying more to the IRS than necessary.
It’s important to note that the 10-year rule enacted in the SECURE Act only applies to IRAs inherited in 2020 and beyond. If you inherited an IRA before 2020, you’re still covered under the old rules.
How to Avoid the Tax Trap
The key is in planning. Don’t wait until the ninth year to make withdrawals. Instead:
- Spread withdrawals over the 10-year period to manage your tax bracket.
- If possible or applicable, coordinate distributions with lower-income years.
- Work with a tax advisor to help you work through different withdrawal strategies.
Here’s the bottom line: the SECURE Act changed the rules for inherited IRAs, and without careful planning, the 10-year requirement can create significant tax bills for beneficiaries. Be prepared, understand the timing, and work with a tax professional to reduce the impact.
by Daniel Kittell | Accounting News, Industry - Veterinary Medicine, News, Newsletter
Running a veterinary clinic means juggling patient care, staff needs, and business operations. Technology can help ease that load, and in 2026, several trends are beginning to emerge for better efficiency, security, and staff and client support. Here are the technology trends shaping the veterinary industry in the year to come.
AI Is Reshaping Workflow
AI is becoming an indispensable tool for diagnostics, documentation, and scheduling. Some AI-powered tools can create notes and exam summaries, helping staff spend less time on paperwork and more time on animals. AI tools can also scan X-rays or lab results to support faster and more accurate results than humans alone. But AI is not a replacement for humans. Professional expertise still guides treatment, and human interaction is still imperative for client comfort, confidence, and retention.
Telemedicine Isn’t Going Anywhere
The pandemic pushed the industry into exploring virtual care, and now it’s a practical tool for ongoing care and follow-ups. Telehealth platforms allow practices to consult with clients, address minor concerns, and answer questions. It’s convenient for both clients and practices (when used efficiently, telehealth can help increase daily cases), but it’s especially helpful for clients in rural areas and those with mobility issues.
Health Trackers for Personalized Care
Just like wearable gadgets for humans, activity trackers and smart collars can track an animal’s heart rate, steps, and sleep. They alert clients through apps when red flags like weight gain or low energy start trending, potentially leading to preventative care and tailored treatment plans, not just emergency or reactive care.
Cloud-Based Practice Software
Cloud-based management software is essential. It automates scheduling, inventory, and billing, and it offers stronger security. Staff can log in from anywhere, updates happen automatically, and multi-location clinics or hospitals can work more seamlessly across sites. Costs typically start low, add-on features like online scheduling are usually easy to integrate, and if a computer crashes? Your data is still safe.
Flexible Payment Options Help Reduce Financial Stress
Affordability remains a significant barrier to care. Payment flexibility not only helps clients but also protects a clinic’s revenue by facilitating ongoing care and routine visits. Platforms that support wellness checkups, subscriptions, pet insurance, and in-house financing can ease budgets, reduce admin work, and ensure clients follow through with recommended care. Sometimes, payment flexibility is all it takes to prevent economic euthanasia.
Digital Wellness Plans
Digital wellness platforms can create custom plans to help clients stay on schedule, which leads to reliable revenue streams for practices. These platforms help by spreading out costs and reminding pet owners when it’s time for exams, vaccines, medicines, or screenings. It’s affordable for owners, sustainable for staff, and helps to increase compliance. And when clinics see higher compliance, pets stay healthier. If your practice is just wading into the waters of digital wellness platforms, try starting small with one platform to test.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement, Retirement Savings
When you retire, you don’t have to move your 401(k) right away, and for many retirees, leaving it where it is could be a smart move. Employers are increasingly adding features that make staying in the plan more appealing. Why? Partly because when employees with large balances leave their money in the plan, it helps lower overall fees for both the company and participants. But before you make a decision, it’s worth understanding your options.
Most Retirees Can Leave Their 401(k) Where It Is
More than half of American workers don’t realize that most plans allow them to leave their 401(k) in place after they stop working.
The key word in that sentence is most. If your balance is under $1,000, your plan may automatically close the account and issue a check. If you don’t deposit that into another qualified retirement account, such as an IRA, it counts as a distribution and may be taxed. You could also incur a 10% early withdrawal penalty.
Additionally, if your balance is under $7,000, your employer may roll it into an IRA for you. Otherwise, your funds can stay put, and you can access it when needed, depending on your plan’s rules.
What’s Changing in 401(k) Plans?
In the past, many plans required retirees to withdraw the full balance or roll it over to an IRA. Now, according to a 2025 Vanguard study, 68% of plans allow retirees to set up installment payments from their accounts (up from 59%), and 43% allow partial, as-needed withdrawals (up from 16%).
These features give retirees more flexibility, but they’re not offered through all plans, so it’s important to check with your plan provider before making a decision to withdraw funds.
Should You Roll Over to an IRA?
Rolling your 401(k) to an IRA may get you a wider range of investment choices, and in some cases, lower fees. But with that flexibility comes responsibility. You’ll need to manage your own money or hire someone to do it for you.
Before moving your money, consider investment options in both accounts, fees (both visible and hidden), your comfort level with managing investments, and whether you anticipate needing regular withdrawals.
Annuities in 401(k)s
Some 401(k) plans now offer annuity options, either directly or through annuity-enhanced target-date funds. These are funds where you choose a target year, usually the year you plan to retire, and at first invest in higher-risk assets, such as stocks. As you get closer to your target year, the fund automatically shifts your money to safer investments, such as bonds.
Annuities offer a steady stream of income for life and peace of mind in retirement planning. On the other hand, they offer less flexibility, often include complex terms, and sometimes have added fees.
There’s No Rush
For many retirees, keeping your 401(k) where it is can be a solid choice, but you don’t need to make a move the day you retire. Take your time. Look at what your current plan offers. Compare it with your IRA options. Consult a financial advisor who can help you come up with a strategy that fits your goals, income needs, and comfort level.
by Daniel Kittell | Accounting News, Industry - Construction, News, Newsletter, Small Business
The Trump administration enacted new tariffs on lumber and kitchen cabinets, adding pressure to construction budgets. The tariffs apply a 10% duty on softwood lumber and a 25% levy on imported kitchen cabinets. By 2026, the cabinet tariff is set to double to 50%. As a result, we could be looking at higher construction costs, project delays, and a housing market ripple effect that could ultimately hit renters and homebuyers. Read on as we discuss the impact of these tariffs on the construction industry and the responsive steps to take now.
Why These Tariffs Matter
The construction industry relies heavily on imported materials. Lumber, cabinets, steel, and other staple building materials often come from global suppliers because domestic supplies fall short of meeting demand.
Canada is the top supplier of softwood lumber, making up about 40% of lumber imports. This is followed by China, Brazil, Mexico, and Germany. Tariffs on these imports raise prices for consumers.
Unfortunately, there is no quick fix. With a limited domestic production base, builders can’t just “buy American” and move on. That means higher costs get passed along the chain, from developers to consumers.
The Impact on Builders and Developers
When it comes to construction projects, a 10-25% spike in material costs can throw off budgets, delay construction timelines, or force design changes. Some of the hardest-hit sectors include multi-family housing, affordable housing projects, and areas rebuilding after natural disasters. For example, Los Angeles developers were already paying a premium for lumber after the wildfire damage. Now, added tariffs could stall rebuilding efforts and new construction.
An Industry in Flux
Developers are looking for new suppliers in countries not affected by tariffs, and they’re exploring alternatives such as engineered wood like LVP, laminate cabinets, and open shelving. But making these changes when projects are already underway can lead to longer lead times and further delays.
And while tariffs are enacted to protect U.S. industries, there is no quick way to ramp up domestic production of lumber and cabinetry. So builders are caught in the middle.
What Construction Firms Can Do
Here’s how construction businesses can respond to these tariffs:
- Review your material suppliers. If you rely heavily on imported lumber or cabinets, check lead times.
- Start having conversations with clients about possible price fluctuations.
- Make sure new bids for projects account for potential increases.
- With new projects moving forward, build in flexibility for longer timelines.
- Explore U.S.-made materials or products from countries not affected by tariffs.
Tariffs could significantly impact the construction landscape as builders and developers face higher costs, tighter timelines, and growing uncertainty. For now, and especially next year when tariffs on lumber rise further, the cost is likely to trickle down to consumers and local economies. The construction industry will need to adapt quickly, or fall behind.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement Savings
When the Federal Reserve cuts interest rates, it’s good news for borrowers and consumers, but not so much for savers. The Fed’s recent quarter-point rate cut is a reminder that the annual percentage yields (APYs) on savings accounts and certificates of deposit (CDs) tend to fall soon after. This means you may need to adjust your savings strategy. Here’s how to keep your money growing when rates start dropping.
Why Savings and CD Rates Fall After a Rate Cut
When the Fed lowers interest rates, it becomes cheaper for banks to borrow money. As a result, they don’t need to be as competitive to attract deposits, so they tend to lower the interest they pay on savings accounts and CDs. That’s why you’ll often see your APY drop soon after the Fed makes a rate cut. In short, banks follow the tone set by the Fed.
Stick with a High-Yield Savings Account
Even when rates fall, high-yield savings accounts still offer better returns than traditional savings accounts. And if you want quicker access without the early withdrawal fees of CDs, a high-yield savings account is the way to go. Though these accounts have variable interest rates, you’ll want to look for one that earns at least 4% APY, has no monthly fees or minimum balance, and allows quick transfers between checking and savings.
The Fed is expected to make further cuts, so your earnings could dip slightly, but high-yield savings accounts are still safe and flexible accounts for emergency funds and short-term savings.
Lock in a CD Before Rates Drop Further
Assuming you have a robust and easily-accessible emergency fund and you’re wanting to set aside some separate funds that you don’t intend to touch for a while, consider locking in a CD now. CDs offer fixed interest rates, so if the Fed does make more rate cuts, you won’t be affected.
If you’re new to CDs, here are a few tips:
- Start small and short-term. If you’ve never used a CD, try one with a shorter maturity, like three or six months, to see how it fits your budget. A CD maturity is the date when it reaches the end of its fixed term. You have a grace period to decide if you want to renew it, withdraw the funds, or transfer them to another account without penalty.
- Watch for early withdrawal penalties. The longer the CD term, the bigger the penalty if you withdraw early. A five-year CD, for example, might cost you six months to a year of interest if you break it early.
- Avoid auto-renewals. Many banks automatically renew CDs when they mature. Set a reminder sometime before the end date so you can decide whether to reinvest or move your money elsewhere.
- Prioritize your goals first. CDs aren’t made for quick access, so they make the most sense once you’ve built a solid emergency fund.
When the Fed cuts rates, it’s natural for savings and CD earnings to slip, but you can keep your money moving in the right direction by staying flexible and adjusting your savings strategy as rates change.
