Wednesday, December 26, 2012

Doeren Mayhew | Official 2013 Retirement Plan Inflation Adjustments

The IRS has announced many cost-of-living adjustments (COLAs) that apply to retirement benefit plan limitations. Below are selected COLAs for 2013, compared to their 2012 levels.

  • Limit on elective deferrals to 401(k), 403(b), and 457 plans — $17,500, up from $17,000
  • Traditional and Roth IRA contribution limit — $5,500, up from $5,000
  • Maximum SIMPLE contributions — $12,000, up from $11,500
  • Limit on annual additions to defined contribution plans — $51,000, up from $50,000
  • Maximum annual benefit accrued under a defined benefit plan — $205,000, up from $200,000
  • Compensation limit for qualified plan purposes — $255,000, up from $250,000
  • Traditional IRA deductions — begins to phase out at Modified Adjusted Gross Income (MAGI) of $95,000 for a married couple filing jointly, up from $92,000; single or head of household filers: $59,000, up from $58,000
  • MAGI phase-out range for Roth IRA contributions — $178,000 to $188,000, up from $173,000 to $183,000 (married filing jointly); singles and heads of households: $112,000 to $127,000, up from $110,000 to $125,000
  • MAGI limit for the Retirement Saver’s credit — $59,000 for married couples filing jointly, up from $57,500; singles and heads of households: $29,500, up from $28,750

Limits on catch-up contributions remain the same for 2013: for IRAs, the limit is $1,000; for 401(k) and 403(b) plans, $5,500; and for SIMPLE plans, $2,500.

If you have any questions regarding the limitations and how they apply to you, contact Doeren Mayhew.

Doeren Mayhew | Records Retention Schedule

Records Retention Schedule
Doeren Mayhew

Wednesday, December 19, 2012

AICPA Offers Insight Into Fiscal Cliff Discussions

Looking for an understandable guide to tax provisions at the center of the debate over the looming fiscal cliff? The American Institute of CPAs (AICPA) has developed a “Fiscal Cliff Series” that provides fact sheets on the following tax topics:
According to the organization, each fact sheet describes the tax provision in question, explains what will happen if we go off the fiscal cliff, identifies who will be affected by the cliff, discusses whether the provision can be dealt with after Jan. 1, and provides AICPA commentary and additional resources.
The fiscal cliff refers to the predicted reduction in the budget deficit and a corresponding slowdown of the economy if specific laws are allowed to automatically expire or go into effect at the beginning of 2013. The laws include tax increases due to the expiration of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the spending reductions (sequestrations) under the Budget Control Act of 2011.

Source: AICPA press release

Contact Doeren Mayhew for more information. 

Wednesday, December 12, 2012

Recognizing Capital Gain in 2012

Recognizing Capital Gain in 2012

Wednesday, December 5, 2012

Management Mistakes That Undermine Business Value

A clear growth strategy, great customer service, an experienced management team and a longstanding customer base are all among the drivers that build business value, but are there underlying factors that steer you from obtaining them? Doeren Mayhew’s recent business boot camp featuring Shareholder Jennifer Mailhes and Insperity’s CJ Coolidge revealed some common pitfalls that undermine business value:
  1. Lacking a clear, compelling and communicated purpose. No growth strategy can be carried out if your team doesn’t know why the business exists and why their contributions matter. We find that entrepreneurs often have a vision in their head that doesn’t get clearly articulated. Communicate your vision to your management team and employees – and often – so they continuously understand the overall goal and what must be collectively achieved to get there. Annual strategic planning with your management team can help you develop and document your vision and build consensus on how to reach it.
  2. Relying on past success. The greatest barrier to future success is relying on the past. What has “always worked” for the business may not work at all today. Seek new ways to grow and innovate, and be flexible with processes and procedures as the need for change arises. Consider using a SWOT analysis to explore the strengths, weaknesses, opportunities and threats for your business as a way to engage your team in identifying areas for improvement.
  3. Working on too many initiatives. Avoid the “myth of multitasking”: trying to do it all and accomplishing nothing. Doeren Mayhew’s business advisors see it often in our work with clients, especially busy accounting departments – so many projects are on the list that many of them are touched but not completed, or not completed well. Equally important, ask yourself if your team is focusing on the right projects – how relevant are they to overall goals?
  4. Needing to know it all. A high-value business is one that can run successfully when the owner leaves it. Trying to maintain a hold on every part of your organization not only takes your focus away from the strategic matters, it doesn’t allow your team to develop and work successfully without your involvement. Further, failing to involve others when you need it makes you mistake prone and leaves you open to costly risk. Leverage yourself within the company and seek both internal and external resources to build a systems-driven versus owner-driven business.
  5. Creating an over-controlling environment.  The belief that management must control all decisions can lead to high employee turnover, nervous attitudes and minimal communication in the workplace. Most importantly, it stifles innovation by your team and fosters that value drainer we reference above called an owner-driven business. Autonomy drives employee performance, so trust in your team to create, contribute and implement new ideas.
  6. Possessing an under-engaged workforce. A recent study on workplace energy revealed that only 28 percent of employees are engaged, while 20 percent are actively disengaged and 52 percent are not at all engaged.  That means if your workplace is a football team, only three players are actually trying to win, six do not care who wins and two are actively helping the other team win! Imagine where the business is now and the value you could achieve if everyone had their heads in the game.
Other management team mistakes include missing opportunities, ignoring conflict resolution and expecting systems to have an infinite shelf life
With CPAs in Houston, Troy and Fort Lauderdale, Doeren Mayhew’s Business Advisory Group works with owners and management in areas such as strategic planningCFO services and accounting analysis. Contact us for more information.