By Jennifer Haddad, CPA Audit Partner The Secure 2.0 Act of 2022 changed the rules for hardship withdrawals for employee benefit plans by allowing Plan Sponsors to rely on self-certification by an employee for a hardship withdrawal in lieu of requiring documentation. An employee must certify that they a) have an immediate and heavy financial need, b) the distribution is not greater than the financial need, c) the employee has no other means to meet the need, and c) the financial need is permitted by IRS regulations. This change has allowed Plan Sponsors to streamline the hardship distribution process,
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Monthly Archives August 2024
Three New Interns Start Internships at WFY
Wright Ford Young & Co. welcomed three new interns to our WFY team. Colette Kim, Joshua McBride, and Nguyen Pham joined our tax department in July. WFY is excited to have these three interns join our firm for their internships. Colette Kim Colette Kim is a returning Tax Intern in our tax department at WFY. She is currently attending CSU Fullerton and will be graduating with her Bachelor’s degree in the Fall. Colette is receiving her degree in Business Administration with a concentration in Accounting. Once she graduates from CSU Fullerton, she has accepted a position at WFY as a
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Take Advantage of The Augusta Rule: A Tax-Free Business Rental Income Opportunity
The IRS Section 280A, often referred to as the “Augusta Rule,” presents a unique tax-saving opportunity for homeowners who run businesses. Named after the city of Augusta, Georgia, where homeowners rent out their properties during the Masters Golf Tournament, this provision allows homeowners to rent out their homes to their businesses for short periods without having to report the rental income. Here’s a closer look at this tax loophole and how it can benefit you. What is IRS Section 280A? IRS Section 280A deals with the tax treatment of home office expenses and rental use of a taxpayer’s residence. The
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