Tax Laws

The retirement planning changes in a nutshell:

The number of content creators on social media have ballooned and advertising departments have noticed.  Sending their products to creators to evaluate is one of the most cost effective ways to get your name out their to an audience that is willing to listen.  

What a lot of new creators fail to address is how to handle these 'gifts' from a tax standpoint. So let's review the rules and IRS regulations that pertain to this subject. Here is an example situation to begin the discussion:

One of the most mis-understood parts of the tax code is how to handle fringe benefits when you are a shareholder of a S corporation.  Here's a quick primer on life insurance, retirement plans and health insurance:

In general, a business may provide certain tax-free fringe benefits to its employees. One such benefit is group term life insurance up to $50,000, but there are special rules regarding fringe benefits that apply to S corporation 2% shareholder-employees. Generally, a 2% shareholder is a shareholder who owns more than 2% of the S corporation’s stock on any day during the tax year.

(Under §1372 and Rev. Rul. 91-26, for fringe benefit purposes, an S corporation 2% shareholder who is also an employee of the corporation is treated the same way as a partner in a partnership.)

The Consolidated Appropriations Act (CAA), 2023 that just passed Congress includes the retirement package, SECURE 2.0. Here are the major changes that can affect you and/or your small business: 
The Saver's Credit is becoming the Saver's Match for tax years beginning after December 31, 2026

The retirement savings contributions credit (aka saver’s credit) is being repealed and replaced with a new “saver’s match.” The saver’s match will be paid in the form of a contribution to the taxpayer’s IRA or retirement plan, instead of a non-refundable tax credit as it is now.