Blog Archives

Should I borrow from my 401(k) plan? When it Works

Borrowing from a 401(k) plan can make sense when cash is needed for a serious SHORT-TERM liquidity need.  “Short-term” is roughly a year or less.  “Serious liquidity need” does NOT include a sudden yearning for a flat-screen TV. The best

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Should I borrow from my 401(k) plan? Purchase a Primary Residence

Regulations require 401(k) plan loans to be repaid on an amortizing basis over not more than five years, unless the loan is used to purchase a primary residence. Longer payback periods are allowed for these particular loans. Evaluating the use

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Should I borrow from my 401(k) plan? The upside

Sometimes it may make sense to borrow from your 401(k) plan.  The upsides are: –401(k) loans can be a quick, simple, lowest-cost way to get cash needed. –In most 401(k) plans, requesting a loan requires no lengthy applications or credit

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Should I borrow from my 401(k) plan? The Pitfalls

The pitfalls of borrowing from a 401(k) plan are the following opportunity costs: –Borrowers lose any positive earnings that would have been produced by those investments in the market.  In other words, the impact is negative in strong ‘up’ markets.

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Should I borrow from my 401(k) plan? The Basics

According to a study by the Employee Benefits Research Institute (EBRI), nearly 20% of all 401(k) participants had plan loans outstanding. This statistic has held true since the early 2000s.  These loans can be appropriate in some situations.  However, borrowing

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Can I pay someone as both an employee and as an independent contractor?

The official IRS position is that “facts and circumstances” always dictate how a worker is “classified” for employee (W-2) or independent contractor (1099) purposes. A person can be both an employee and an independent contractor if their “sideline services” are

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Records Retention for Businesses

We are often asked, “How long do I have to keep this stuff?” Whether personal or business, the minimum is 3 years to retain records since the IRS generally has 3 years to audit you from the date you file

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QuickBooks Phishing Scam

There is a new phishing scam targeting small businesses.  It is an email alert supposedly about QuickBooks with the subject line “QuickBooks Support: Change Request.” The message is “confirming” that you changed your business name with Intuit, QuickBooks’ manufacturer. The

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New FLSA Requirements Suspended

The new FLSA overtime regulations which were set to increase the exempt salary threshold to $47,476 on December 1, 2016, have been temporarily suspended by Judge Amos L. Mazzant, III. Their implementation has been suspended until their legality can be

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New FLSA Requirements

New overtime regulations under FLSA will go into effect on December 1, 2016.   The salary floor for FLSA exemptions will be raised to $913 per week or $47,476 annually.  In order to still be considered exempt, employees will need to

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