October 2022 E-Newsletter

OCTOBER 2022 E-NEWSLETTER

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October Featured News

Save Taxes on Retirement Plan withdrawals

Tapping your retirement accounts before age 59½ usually comes with a 10% early distribution penalty and any income tax due. But if you must make an early withdrawal, the IRS allows a few exceptions from the penalty.

Small Business Loans

Take the guesswork out of securing a business loan. Whether it’s to fund expansion or purchase equipment, being prepared can speed up the process.

Maximize Your FSA

With the end of the year approaching, review your health care flexible spending account (FSA) to ensure you get the most out of it.

Maintaining Profits During a Bear Market

How we prepare our businesses for another potential bear market can mean the difference between thriving or struggling. Let’s revisit some keys to maintaining a financially viable company when the economy slows.

October 2022 Q & A

Q: The IRS fined me for making a late tax payment. Can I get them to waive the penalty?

A: The IRS may provide relief from a penalty that would otherwise be applicable under its First Time Penalty Abatement policy.

You may qualify for a reduction of your penalty for failing to pay taxes on time if the following are true:

You didn't previously have to file a return or have no penalties for the three tax years before the tax year in which you received a penalty.

You filed all required returns or requested an extension to file later.

You have paid, or arranged to pay, any tax due.

SHORT BITS

Year-end Bonuses and Retirement Accounts

As the fourth quarter of 2022 is upon us, you may consider providing annual bonus payouts to your employees. It’s a great way to thank them for their hard work.

Once you settle on the bonus amounts, consider notifying each employee before making the payments to provide them with a choice of how they prefer to receive the funds. They could choose to take it as regular income or invest it in their retirement account.

If your company already has a 401(k) plan, depositing their year-end bonus will function like any other payroll deductions you make.

If your employee has already maxed out their 401(k) contributions for the year, you may be able to send their bonus to their IRA.

A Bear Market, A Bull Market

A BEAR MARKET

WHAT IS IT?

When a market index (like the S&P 500) falls 20% or more from its peak.

HOW OFTEN?

On average, a bear market occurs every 56 months.

HOW LONG?

On average, a bear market lasts 9.6 months.

A BULL MARKET

WHAT IS IT?

When the market has risen 20% or more above its near-term lows.

HOW OFTEN?

Bull markets have occurred for 78% of the past 91 years.

HOW LONG?

The average length of a bull market is 3.8 years, with the longest being the 11-year run from 2009 to 2020.

Office Information

Fax: 516-938-0491

Address: 415 Crossways Park Dr. Ste. C., Woodbury, NY 11797

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