Translations from Your Trusted Advisor.
As stocks have taken a dip in 2022, with potential for the market to become a bear market, this may be a good time to consider converting retirement assets to a Roth IRA. Transferring funds from a traditional IRA or 401 (k) plan into a Roth account can be beneficial over the long-term because the assets grow tax-free in a Roth account, whereas in a traditional account an investor owes the taxes at distribution time.
Mallory Vincent, CPA, MBA •
FASB ASC Topic 842, Leases, is on the horizon for most non-publicly held companies. The new lessee model under this standard was developed to increase transparency and comparability in financial reporting by requiring balance sheet recognition and note disclosure of certain information about leasing activities. After the FASB delayed the effective date, ASC 842 is now effective for private companies and not-for-profits for fiscal years beginning after December 15, 2021, and for interim periods within fiscal years beginning after December 15, 2022.
Does this accounting standard affect my company or organization?
Earlier this month the IRS issued a news release focusing on the Educator Expense Deduction. For 2002 through 2021 the deduction was limited to a maximum of $250 per taxpayer for year. However beginning in 2022 the deduction increases to $300 per taxpayer. If both taxpayer and spouse are eligible educators in 2022 their maximum deduction will be a combined $600, with each individual subject to their own $300 limit.
Earlier this week, President Biden signed the Inflation Reduction Act, HR 5376, into law. The bill has several significant provisions to raise revenue, but most taxpayers won't see much impact on their annual tax returns.
Hey NH Nonprofits! Complying with the state’s financial reporting requirements may be getting easier for you.