IRS Releases 401(k) Compliance Check Report

Robin Weingast checklistIn late March, the IRS released the results of its 401(k) Compliance Check Questionnaire Project. The IRS embarked on this project in 2012 as a way to assess the compliance of largest retirement plan market segment in order to assure the overall long-term health of the American retirement system.

Their questionnaire was sent to a random sample of 1,200 401(k) plan sponsors that filed a Form 5500 for the 2007 plan year.  Questions  were centered around topics of: demographics, plan participation, contributions, designated Roth features, distributions, top-heavy and nondiscrimination testing, IRS correction programs and plan administration.

The IRS recently published both a summary of key findings as well as a comprehensive report. You can download the 91-page report here.

It is clear that the IRS is focused on ensuring plan compliance. Robin Weingast and the entire Robin S. Weingast and Associates team are prepared to assist you in making sure your plan is compliant. Robin Weingast and her team can also assist you in providing ancillary “retirement” benefits to select groups of key employees and/or owners, without including all of the employees and to “Legally Discriminate” to include any one you want to participate in the plan. Contact Robin S. Weingast and Associates to learn more.

Need to Know: The New Medicare Taxes

Robin Weingast calculator imageDid you know that 2013 brought with it two new Medicare taxes: a 3.8% surtax on unearned investment income and the 0.9% additional tax on wages?

These new taxes will add complexity to your planning and will require a careful understanding of both taxes’ many stipulations.

The team at Robin S. Weingast and Associates is well-versed and up-to-date on these two new key Medicare taxes. Let us put our expertise to work for you. Contact us today to discuss the full implications of the new Medicare taxes and how to put a retirement plan in place that is best for you, to reduce your business taxes.

What’s your long-term plan?

Robin Weingast piggy bank ImageA recent Daily News article by Phyllis Furman reported on the shockingly high annual cost of private nursing home rooms in New York City. According to Genworth’s annual Cost of Care Survey, here’s what you can expect for a private nursing home room:

  • A room in Manhattan costs $180,000 per year
  • A room in Queens costs $160,000 per year
  • A room on Long Island costs $140,000 per year

 

When you compare this to the national median cost of $84,000 per year, NYC can be a pricey place to spend your golden years. Only San Francisco is more expensive.

These prices are compounded by the fact that the average nursing home stay is 2.5 years, and, according to Genworth, prices rise approximately 5% each year.

What’s contributing to these outrageous costs? According to Genworth, it’s property costs, staff, insurance, and maintenance.

When considering a home health aide, NYC is closer in line to the national median rate of $19/hour. NYC residents pay a median rate of $22/hour. This has become a popular option for NYC residents, and seven out of ten of Genworth’s first-time clients choose this option.

It’s important to note that Medicare generally won’t pay for nursing home stays or home care. Medicaid offers some funding potentials, but you will need to familiarize yourself with their eligibility requirements. Another option is to purchase a long-term care policy.

The other factor at play is that the cost of a long-term care policy today runs almost 30% to 50% more than it did just three to five years ago.

According to the American Association for Long-Term Care Insurance, a 60-year-old couple should expect to pay about $2,000 a year for $162,000 coverage for each spouse.

The team of experts at Robin S. Weingast and Associates can help you with all of your long-term care policy needs. We are here to answer questions and to help you put a plan in place that will make sure you and your loved ones are prepared for whatever long-term care situation they require. Contact us today for a free consultation and to discuss how to create a long-term care plan.