August 2024 newsletter
Welcome to August…and those bittersweet dog days of summer. Wish they could last all year, but then we wouldn’t appreciate them so much either.
Also…welcome to our new OAA newsletter. We plan on sending out brief newsletters every other month to communicate important information and reminders. Don’t be shy – let us know what you think! Is there something you want to know more about? Let us know!
Tax Saving Ideas
Open a College Savings 529 Plan
It’s never too early or too late to start saving for college. If you haven’t already taken steps to start saving, consider opening a 529 Savings plan. Although contributions are not tax deductible at the federal level, they may be on the state level. Growth within the plan is tax-free as long as you use the distributions for education-related expenses or tuition. Check out https://www.collegesavings.org/find-my-states-529-plan to learn more.
Bonus: with recent legislation and criteria that must be met, up to $30k of unused funds can be rolled over to a ROTH retirement account!!
Have Your Children Invest in a Roth IRA
If your child has “earned income”, which means W-2 or 1099-NEC income, they may be eligible to contribute to a retirement account. They should consider investing in a Roth IRA. This is an excellent opportunity to teach kids to save their money, and it’s advantageous because withdrawals are tax-free in retirement, and money can grow tax-free for the remainder of their working years. There is no tax advantage in the year of the contribution, but not having to pay taxes in the future as the account grows is very beneficial. The maximum contribution for a ROTH IRA in 2024 is $7,000.
Did You Know?
A significant number of businesses will be required to comply with the Corporate Transparency Act (“CTA) beginning in 2024. The CTA was enacted into law as part of the National Defense Act for Fiscal Year 2021. The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOIâ€) of certain entities from people who own or control a company. This filing, part of the Bank Secrecy Act, is filed with the Financial Crimes Enforcement Network (FinCen) to combat money-laundering and includes businesses of all sizes – even small business like yours. Existing businesses (created/registered prior to 01/01/2024) must file no later than 12/31/2024. Although these BOI requirements may change, we have to work with the regulations as they currently exist. We have many resources and partners to help you with this.
Dates to Remember
- September 15th – Third quarter estimates for 2024 are due
- September 15th – S-Corps, Partnerships extended returns due
- October 15th – Individual, Corporate extended returns due
- November 15th – Exempt Organizations extended returns due
- December 31st – BOI Reporting due for entities in existence prior to 1/1/24
“Keep your face to the sunshine and you will never see the shadows.†—Helen Keller
