by Daniel Kittell | Accounting News, IRS, News, Retirement, Tax, Tax Consulting, Tax Planning, Tax Planning - Individual, Tax Preparation - Individual
When you accept a new job with a new company, you need to decide what to do with the money in your 401(k) plan. Here are your options.
1. Leave the money in your former employer’s 401(k) plan
While this is typically an option, and your funds will continue to grow tax-deferred, it may not be the best option. For starters, once you move to your new place of employment, you’re no longer able to contribute to it. Another possible deterrent is the fact that your former employer could switch 401(k) providers or get bought out by a different company. Both scenarios would potentially leave you in the dark in regards to your account number or login information. However, if your new employer requires employees to work a certain length of time at the company before permitting them to partake in the 401(k) plan, leaving your 401(k) funds with your former employer temporarily might be a good game plan.
2. Roll your 401(k) to your new employer’s plan
If your new employer allows rollovers, you can have your 401(k) funds directly transferred to your new employer’s plan. This is called a “trustee-to-trustee” transfer: assets from one trustee or custodian of a retirement savings plan are transferred to the trustee or custodian of another retirement savings plan. By having your 401(k) funds directly transferred following federal rollover rules, you’ll avoid having federal income tax withheld, and your money will be easier to manage in one account. You can also have the funds transferred to a new or existing IRA.
3. Transfer your plan via an indirect rollover
Another possible alternative is to roll the funds over to another employer-sponsored retirement plan by having your 401(k) distribution check made out to you, and then depositing the funds to a new retirement savings plan. However, this particular move will require that 20 percent of the taxable portion of your distribution is withheld for federal income taxes. And if you wait beyond 60 days to redeposit the funds, the full amount of your distribution will be taxable.
Whichever way you choose to move forward with your 401(k) plan, you should be aware of rollover fees. Typically the fee is only a minimal one-time fee, but it’s worth checking in with your 401(k) provider to discuss this as well as any other questions you might have.
by Pete McAllister | Accounting News, IRS, QuickBooks, Tax, Uncategorized
By Eric Zeman InformationWeek
July 25, 2011 05:20 PM
Intuit on Monday launched QuickBooks Mobile for Android smartphones. This new mobile software allows small and midsize businesses to more effectively control and manage their invoicing processes.
With QuickBooks installed on their Android smartphone, business owners can perform a wide range of actions right from their device without the need to find a PC. QuickBooks Mobile for Android can be used to create estimates, manage invoices, and view customer details. Further, the application syncs in the background with QuickBooks, which gives mobile professionals the most up-to-date information no matter where they happen to be.
Intuit says that QuickBooks Mobile was designed with SMBs in mind, as they often need as much flexibility as possible when it comes to performing work functions out of the office. With QuickBooks Mobile for Android, SMBs can stay connected to their business with quick access to customer and sales information, save time by checking customer balances and creating estimates on-the-go, and be more productive by invoicing at the job site without having to go back to the office.
“The majority of small and medium-sized business owners feel that staying connected through wireless devices is critical to the success of their business,” said Dan Wernikoff, vice president and general manager, in a statement. “As the demand for mobile access continues to accelerate, we’re working to give customers the solutions they need most so they can save time and make money wherever their business takes them.”
QuickBooks Mobile for Android is available for free to current QuickBooks Online subscribers. It also is available via subscription to QuickBooks Pro and Premier 2011 customers. QuickBooks Mobile is already available to Apple’s iPhone.
QuickBooks isn’t the first piece of software that Intuit has offered to the Android platform. In June, Intuit Financial Services introduced a mobile banking application that makes it easier for Android smartphone users to manage finances from their mobile devices. The application, which is targeted at consumers, lets users view account balances and transaction history, transfer funds, pay bills, and locate nearby ATMs and bank branches.
Intuit’s GoPayment, available to both the iPhone and Android platforms, allows SMBs to accept credit card payments anywhere, anytime. With it, Intuit offers a free card reader. Intuit charges a small fee per swipe, but there are no set-up or monthly fees, and no contracts.
One last SMB tool available for smartphones from Intuit is Online PayRoll. This application allows employers to pay employees with direct deposit or check, preview paychecks before approving, and view employee information and last payroll run report from their iPhone. Intuit hasn’t said if Online PayRoll will be made available to the Android platform.
With Monday’s release of QuickBooks Mobile, Intuit now has a whole suite of applications available to the SMB on Google’s Android platform.
At the 2011 InformationWeek 500 Conference, C-level executives from leading global companies will gather to discuss how their organizations are turbo-charging business execution and growth–how their accelerated enterprises manage cash more effectively, invest more wisely, delight customers more consistently, manage risk more profitably. The conference will feature a range of keynote, panel, and workshop sessions. St. Regis Monarch Beach, Calif., Sept. 11-13.
by Jean Miller | Accounting News, Uncategorized
Earlier this year Congress passed the Hiring Incentives to Restore Employment Act. (HIRE) One of the provisions of the act allows employers who hire a previously unemployed individual an exemption for matching social security tax on their wages. In order to qualify, the hire date must be after February 3, 2010 and before January 1, 2011; the individual must have been unemployed for the 60 day period ending on the date the employee begins employment with you; is not employed by you to replace another employee unless the other employee separated from employment voluntarily and the new employee can not be related to you. If you believe you have hired someone already this year that qualifies or you plan on hiring a qualified individual, they must complete form W-11. We have attached one for your convenience. If you have further questions regarding the act, please contact our office.
