Our Latest Blog Posts

• Two Reasons to Put Your Spouse on Payroll before Year-End
  

  This is a very important question and something we often analyze for clients in our office. In fact, many clients rush to put their spouse on payroll, but for the wrong reasons and it could actually be a costly mistake.  First, here are two big reasons NOT to put your spouse on payroll. These are actually common mistakes or misconceptions on why one may put cut the non-working spouse a check.  So the non-working spouse can contribute to an IRA – Wrong. A non-working spouse does not have to have a ‘paycheck’ in order to contribute to a traditional or Roth IRA. The non-working spouse can create what’s called a Spousal IRA. There are really only two requirements. One, the working spouse has eligible compensation that’s at least as much as the total contribution to the both IRAs; and two, they file a joint income-tax return. Bottom line, don’t ... Read more
• The Hidden Power and Benefits of a College Education IRA
  

  Ok…so the real name of an IRA that can be used for education expenses is called a Coverdell Education Savings Account (Coverdell ESA).  However, for simplicity sake, we in the accounting world generally refer to these powerful little gems as the “Education IRA”. Regrettably, not everyone in the accounting world believes the Education IRA to be a precious gem.  Mostly because they don’t understand their hidden benefit and strategy.  Thus, in my opinion, the 529 college savings plans are oversold to the public and no one really talks about the Education IRA. Let me set the record straight and share what I think to be one of the most incredible ways to save for college education. First, the good news: Think of a Coverdell ESA as simply an IRA…any investments inside the IRA grow tax free and come out tax free for any qualified education expenses (typically tuition, books, fees, ... Read more