Does your company have an emergency succession plan?
- ByPolk & Associates
- Jun, 05, 2020
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Succession planning is ideally a long-term project. But, as the novel coronavirus (COVID-19) pandemic has made clear, a business owner can suddenly vanish because of an illness or other disaster. That’s why every company needs an emergency succession plan. Doing so starts with identifying an emergency successor who can take on a credible leadership role. Consider the “domino effect;” that is, who will take on your emergency successor’s role when he or she is busy running the company? An emergency succession plan also needs to be transparent. Thoroughly discuss the role with your successor, and create a communications strategy for employees, customers and suppliers. Contact us for help.
A nonworking spouse can still have an IRA
- ByPolk & Associates
- Jun, 05, 2020
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It’s often hard for married couples to save for retirement when one spouse doesn’t work. An IRA contribution is generally only allowed if you have compensation. However, an exception exists. A spousal IRA allows a contribution to be made for a nonworking spouse. Under the rules, a couple can contribute $6,000 to an IRA for a nonworking spouse in 2020 ($7,000 if the spouse will be age 50 by the end of the year). However, if in 2020, the working spouse is an active participant in an employer retirement plan, a deductible contribution can be made to the IRA of the non-participant spouse only if the couple’s adjusted gross income doesn’t exceed a certain threshold. Contact us for more details.
Business meal deductions: The current rules amid proposed changes
- ByPolk & Associates
- Jun, 05, 2020
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One tax break that President Trump has proposed to help restaurants and entertainment venues is an increase in business meal and entertainment deductions. We’ll let you know if a law passes that enhances deductions. In the meantime, let’s review the rules. Before the pandemic hit, many businesses spent money “wining and dining” customers, employees and others. Under current law, entertainment expenses aren’t deductible. However, you can deduct 50% of the cost of business-related food and beverages, if you meet certain requirements. If you buy food and beverages at an entertainment event, you can deduct 50% of the cost, but only if business was conducted right before, during or afterwards.