Author Archives:
Erin Carter

Required minimum distributions (RMDs) are an important part of a beneficiary’s or heir’s tax planning since income tax is due on RMDs in the year the distribution is taken. Previous rules allowed beneficiaries to stretch payments over their lifetime or take the full distribution in later years after the account holder’s death. This approach provided for a more targeted tax plan. The SECURE Act changed how RMDs for inherited accounts work, but at the time failed to provide clear guidance. As a result, many taxpayers who were supposed to make RMDs in 2021 or 2022 did not.

Atlanta high-net-worth individuals and families have many considerations for charitable giving strategies as part of their estate plan. In a sea of options, two of the more common choices include either a donor-advised fund (DAF) or a private foundation. Both will provide certain tax benefits and help individuals and families further their legacy. However, depending on the situation, one may be a better option than the other. There are several factors to consider when deciding which approach makes the most sense.

For many Atlanta plan sponsors maintaining compliance with ERISA regulations is an important priority that is second only to serving participants. One component of compliance is an annual review of plan operations, including amendments that must be made to accommodate legal, and other changes. Throughout 2020, many were challenged by the fast pace of regulatory changes made that often required the adoption of new plan amendments. It was especially difficult because the needed guidance to implement the changes were often issued after the fact.

Risk in a financial statement takes on many forms. It can be a material misstatement or can manifest as an undefined intangible that’s highlighted in a footnote. Auditors spend the most time in financial statement audits on identifying and assessing material misstatements because of the impact on the company’s financial position. Yet, risk assessments made up 25 percent of audit deficiencies in 2020 peer reviews, so there’s clearly more work to do to shore up this aspect of financial reporting.

Even when most people do the right thing and safeguard the information or assets they’re entrusted with, all it takes is one person to make the wrong decision, and trouble ensues. This is an unfortunate reality that both businesses and organizations alike face every day. It is one thing when a bad decision is made by accident, it is quite another when it was done as part of a fraud scheme. Fraud is an ever-present threat that Atlanta area nonprofits need to routinely address. The damage which can arise from such incidents can be devastating and more than just financially – think of brand trust and image.

Americans depend on employer sponsored retirement plans such as 401(k), 403(b), and others to help fund retirement savings. The various features offered in these plans often make it easier to start and continue saving over the years. Unfortunately, 57 percent of workers still don’t have access to an employer-sponsored retirement plan which is a cause for concern. In fact, the reality is that many older Americans are outliving retirement savings creating an unexpected and unwanted situation. To address this issue, Congress is examining several different laws which would make plans more accessible and retirement funds easier to use.

Fraud is a persistent risk that many business owners and executives need to manage. The unfortunate reality is that employees, vendors, or suppliers, may successfully commit fraud without proper prevention controls. Even then, many organizations have fallen victim to bad actors due to the ability to circumvent or compromise detection. This is especially true when it comes to fraud involving long-time employees or senior executives.

There are many similarities between a 401(k) and 403(b) plan. In fact, they are so alike many often assume the main difference is that one is offered by nonprofits and the other is not. Despite this, there are important differences that illustrate the unique challenges 403(b) plan sponsors face. One prominent example is the universal availability rules. Under this requirement, plans must ensure that when one employee participates in the plan that others have the same opportunity. It often requires that management take a proactive approach to communication.

Employer-sponsored retirement plans are one of the best ways to improve recruitment and retention. Concurrently, it is one of the most effective tools for helping employees reach retirement saving goals. Yet cost remains a top issue for small business owners because many plan types can be expensive to operate due to the complex regulatory requirements mandated in the Employee Retirement Income Security Act of 1974 (ERISA). While most of these apply to plans with over 100 participants, even small plans have certain requirements which must be followed. The challenge of managing such costs often prevents many Atlanta small businesses from offering a 401k, or other retirement plan option.  

Fraud is an ever-present threat that Atlanta businesses need to carefully guard against to ensure the organization does not lose thousands of dollars to bad actors. Although it can be difficult to believe a manager or employee would commit such activities, the unfortunate reality is that it happens more than most want to admit. To limit the potential for criminal activities, it is essential for organizations to implement anti-fraud controls and conduct periodic reviews to ensure maximum effectiveness.