Month: July 2020

Employer Reimbursement Rules 2021

Employers who choose to reimburse their employees for business expenses must meet the employer reimbursement rules. In 2021, the rules for reimbursing employees for their business expenses is the same as any other year. First and foremost, an employer must have an accountable plan to track the reimbursements. Also, having a reimbursement policy is a
Read More »

Form 1099R – Retirement Income

The Internal Revenue Service requires retirement companies to report withdrawals made from a retirement account with Form 1099-R. The retired individuals will then report their retirement income on their tax returns using Form 1099-R. You can think of Form 1099-R as the W-2, Wage and Tax Statement but instead of it coming from your employer,
Read More »

IRA Deduction 2021

The Individual Retirement Account contributions are tax-deductible same as the 401(k) contributions. However, there are many restrictions on IRA contributions deduction. If you or your spouse is covered by a retirement plan at work, the deduction might be limited. If you or your spouse doesn’t have a retirement plan at work, the deduction can be
Read More »

401k Head of Household

Regardless of your tax filing status, the 401(k) retirement plan contributions is the same for everyone. Unless you’re aged 50 and over, you will get to contribute as much as $20,000 to your 401(k). Those who are eligible for catch-up contributions get an additional $6,500 to contribute. One thing that your filing status can affect
Read More »