20 FAQs About RMDs

After a one-year hiatus due to the COVID-19 pandemic, owners of qualified retirement plans and IRAs must adhere to the rules for required minimum distributions (RMDs). The RMD rules are tricky and could result in a substantial tax penalty if you’re not careful.

For starters, an RMD is the amount you must withdraw from a qualified retirement plan account or traditional IRA to avoid an expensive tax penalty after reaching the “magic” age. Here are the answers to 20 frequently asked questions (FAQs) about RMDs under current law.

1. What Was the One-Year Reprieve?

The CARES Act, which was enacted in March of 2020, suspended the RMD rules for the 2020 tax year. In fact, if you met certain timing requirements, you could “undo” RMDs taken earlier in the year. Now the standard rules are back in effect for the 2021 tax year and beyond.

2. Which Plans Do the Rules Apply To?

The RMD rules apply to all employer-sponsored retirement plans, including:

  • 401(k) plans
  • 403(b) plans
  • 457(b) plans
  • Profit sharing plans, and
  • Other defined contribution plans.

Slightly different rules may apply to pre-1987 contributions to a 403(b) plan.

The rules also cover traditional IRAs and IRA-based plans, such as SEPs, SARSEPs and SIMPLE-IRAs. But there are exceptions in certain limited circumstances.

3. Do the Rules Apply to Roth Accounts?

The RMD rules also apply to Roth 401(k) accounts. However, they don’t apply to Roth IRAs while the original owner is alive. One way to avoid RMDs on your Roth 401(k) is to roll over the balance into your own Roth IRA.

After your death, however, beneficiaries of your Roth IRA must take RMDs under the same rules that apply to traditional IRAs. Because it’s a Roth IRA, the distributions will be tax-free, if the rules for qualified withdrawals are met.

4. When Must I Start Taking RMDs?

Previously, the required beginning date (RBD) was April 1 of the year after the year in which you turn 70½. However, the Setting Every Community Up for Retirement Enhancement (SECURE) Act pushed back the RBD to 72 for individuals who reach 70½ after 2019.

For example, if you turned 70½ on January 1, 2021, you won’t be 72 until July 1, 2022. So you can delay your first RMD until April 1, 2023.

5. When Must I Take RMDs in Succeeding Years?

The deadline for taking subsequent RMDs is December 31 of the calendar year for which the RMD applies. Therefore, if you have to take your first RMD for the 2021 tax year by April 1, 2022, you must also take your RMD for the 2022 calendar year by December 31, 2022. To reduce overall tax liability, you might take the first RMD in 2021 instead of taking two RMDs in 2022.

6. How Do I Calculate the Annual RMD?

Generally, you just divide the balance in the plan or IRA on December 31 of the prior year by the appropriate life expectancy factor. However, your company plan or IRA trustee or custodian will usually calculate annual RMD amounts for you. The IRS provides the following life expectancy tables for taxpayers to use to calculate RMDs:

Joint life and last survivor expectancy table. This table applies if the sole beneficiary of the account is your spouse and he or she is more than 10 years younger than you.

Uniform lifetime table. This table applies if you’re unmarried, or if your spouse isn’t your sole beneficiary, or if your spouse isn’t more than 10 years younger than you.

Single life expectancy table. This table applies if you’re the beneficiary of an inherited account.

To illustrate, suppose a single 80-year-old with an account balance of $187,000 at the end of the previous year has designated a child as the sole beneficiary. Using the uniform lifetime table, the divisor for an unmarried 80-year-old account owner is 18.7. Thus, you would divide $187,000 by 18.7, resulting in an RMD of $10,000.

Important: The IRS has updated the life expectancy tables. The updated tables reflect longer life expectancies and will be used to calculate RMDs for 2022 and beyond.

7. Can I Withdraw More Than the Required Amount?

There’s no restriction against taking bigger-than-required distributions. You can take out as much as you want as long as you take at least the RMD amount for the calendar year.

8. Can I Get Credit in a Future Year for a Bigger-than-Required Distribution?

The RMD for each calendar year is calculated based on the account balance at the end of the prior year and the applicable life expectancy factor for that year. So, you can’t get a credit in a future year if you take a bigger-than-required distribution this year.

9. Must I Take RMDs From All Qualified Plans and IRAs?

You must calculate the RMD separately for each IRA you own. But you can withdraw the total amount from just one IRA or any combination of IRAs that you choose. The same rule applies to 403(b) plans. However, for all other qualified plans, the RMD must be taken separately from each plan account.

10. Will My Plan Administrator or IRA Trustee or Custodian Ensure that My RMD Is Made on Time?

A plan administrator or IRA trustee or custodian may provide the information for you to calculate RMDs or do the calculation for you. But it’s ultimately your responsibility to take the RMD for the applicable tax year. (See “Don’t Wait Until the Last Minute” at right.)

11. How Do I Estimate the Penalty?

Subtract any distributions that you took from the RMD amount that you should have taken. The RMD penalty equals 50% of that difference. For example, if you were required to withdraw $10,000 and took out only $2,500, the penalty is $3,750 (50% x $7,500). If you make this same mistake for several years, the penalties will continue piling up until you start taking the proper RMD amounts.

The penalty is in addition to any other income tax that you owe for the year. Penalties are the responsibility of the account owner, not the retirement plan or IRA trustee or custodian.

12. How Do I Estimate the Income Tax on an RMD?

The taxable portion of any RMD is taxed at ordinary income rates. But any amount attributable to a return of basis in the account is tax free. As mentioned earlier, the RMD rules don’t apply to an original Roth IRA owner (the person for whom the account was originally set up).

13. Are There Any Exceptions to the RMD Penalty?

The penalty may be waived if you can show that the shortfall was due to reasonable error and you’re taking steps to remedy it. Your tax advisor can help draft a letter of explanation and file the appropriate tax form to demonstrate why your situation qualifies for an exception.

14. Are RMDs Subject to the NIIT?

Distributions from qualified retirement plans and IRAs aren’t included in net investment income for purposes of the 3.8% net investment income tax (NIIT). However, RMDs will drive up your modified adjusted gross income, which could trigger or increase NIIT liability on your net investment income.

15. If I Take RMDs, Can I Still Contribute to a Qualified Employer Plan or IRA?

RMDs don’t affect your eligibility for contributions to qualified retirement plans. So, if an 80-year-old employee still works and participates in a qualified employer plan, his or her employer must make contributions on the individual’s behalf and give the employee the option to continue making salary deferrals if the plan permits them. Otherwise, the employer’s plan could lose its qualified status.

Previously, you couldn’t contribute to a traditional IRA after you turned 70½. However, the SECURE Act removes this limitation. For 2020 and thereafter, there’s no age restriction. But you must have earned income that at least equals your contribution. There has never been any age restriction on Roth IRA contributions, but you must have earned income that at least equals your contribution.

16. Do I Have to Take RMDs If I’m Still Working?

Generally, you must take RMDs from all qualified plans and traditional IRAs. However, you don’t have to withdraw an RMD from your employer’s qualified plan if you still work full-time for the employer and you don’t own 5% or more of the company (attribution rules apply). There’s no similar exception for traditional IRAs.

In addition, you must still take RMDs from qualified plan accounts that you may still have at former employers. (That is, accounts that haven’t been rolled over to your current employer’s plan.)

17. Can I Roll Over an RMD to another IRA or Tax-Deferred Retirement Plan?

Rollovers are strictly prohibited. Allowing retirees to roll over RMDs to other retirement accounts would defeat the purpose of the mandatory distribution rules.

18. Can I Donate RMDs to Charities?

For IRAs, the answer is yes. The tax law allows you to annually transfer up to $100,000 directly from an IRA to an IRS-approved charity without paying tax on the distribution, and the distribution counts towards your RMD obligation for the year. However, you can’t deduct the charitable contribution. If your spouse has an IRA set up in his or her own name, your spouse is entitled to a separate $100,000 limit.

19. What Happens If I Die Before RMDs Start?

If you die before the RBD, no RMD is required for the year of death. For subsequent years, beneficiaries must take RMDs from inherited accounts. Under the SECURE Act, the account usually must be emptied out within 10 years, subject to exceptions for so-called “eligible designated beneficiaries,” such as a beneficiary who is disabled or has not yet reached the legal age of majority. Also, the 10-year rule doesn’t apply to beneficiaries of account owners who died before 2020.

Important: For an inherited account, a spousal beneficiary has greater flexibility than a non-spousal beneficiary, including being able to treat the inherited account as the spouse’s own account.

20. What Happens If I Die after RMDs Start?

If you die on or after the RBD, the beneficiary of the inherited account must take an RMD for the year that you passed away. The inherited account usually must be emptied out within ten years, subject to exceptions for spousal beneficiaries and eligible designated beneficiaries. Also, the 10-year rule doesn’t apply to beneficiaries of account owners who died before 2020.

Important: The beneficiary of an inherited retirement account is exposed to the 50% penalty on any RMD shortfalls. If the retirement account owner dies midyear, the beneficiary may be unaware that the owner has passed away before taking his or her full RMD amount for the year.

Other complex RMD rules may apply if there are multiple non-spousal beneficiaries or if a trust is the beneficiary of a retirement account. Contact us for guidance if you inherit an IRA or other tax-favored retirement account. It’s important to understand what you must do to avoid the punitive 50% penalty for failing to comply with the RMD rules.

Possible Changes in the Works

In recent months, some legislators have discussed the possibility of more tinkering with the RMD rules. For instance, one proposal would push back the RBD even further to the year after you turn 75. But no changes appear imminent as of this writing. Contact us if you have questions about how the RMD rules impact your company qualified retirement plan account(s) and your IRA(s).

© 2021

Samet Celebrates the 10/15 Deadline at Trillium Brewing

On Thursday, we celebrated the completion of another successful tax deadline at Trillium Brewing Company in Canton. Everyone had a blast unwinding, catching up, and of course sipping on some tasty beverages!...

Read More »

Successful Strategies Create Successful Mergers

Acquiring another company and merging it with your business can be the most efficient way to grow. But many acquisitions don’t pay off and it’s often management issues — not...

Read More »

The Basics of Estate Planning

With the many changes in the estate tax in recent years, you could be confused about the need for estate planning. But estate planning was never just about reducing estate...

Read More »

Samet Participates in The Boston House’s 25th Annual Golf Tournament

On Tuesday, a few members of the Samet team headed north to Tedesco Country Club in Marblehead, MA for The Boston House’s 25th Annual Golf Tournament, where they sharpened their...

Read More »

A New Chapter on College Financial Aid

Financially savvy parents of college students should generally take the time to complete the Free Application for Federal Student Aid (FAFSA) each year. Students must file their FAFSA for the 2022–2023...

Read More »

Samet Participates in MSCPA Women’s Golf Outing

On Wednesday morning, the MSCPA held their 20th annual Women’s Golf Outing at Stow Acres Country Club. Risë Fanger, Patty Smith, and Jillian Lawless represented Samet at the tournament. Although...

Read More »

Retirement Savings: Are You Currently On Track?

Employment disruptions caused by the COVID-19 economic slowdown have scrambled the retirement saving strategies of many Americans. According to a recent survey, nearly half of employed Americans either reduced or...

Read More »

Would a Roth IRA Conversion Make Sense for You?

Roth IRA and 401(k) accounts were created in 1998. Contributions to Roth accounts are taxed on the front end at ordinary tax rates when made. But withdrawals from these accounts...

Read More »

Learn the Tax Score for Fantasy Sports

Football season will be kicking off soon. Beware: If you participate in fantasy sports leagues for money, there may be tax implications related to these activities. For instance, you may enter...

Read More »

New Hire Gathering at Trillium Fenway

On Friday, a few associates welcomed the newest members of our team at a small outdoor gathering at Trillium Brewing in Fenway! We are excited to have several new faces...

Read More »

Samet Participates in the MSCPA Karter Kup Tennis Scramble

On Thursday, Teddy, Hannah, and Danny braved the heat and headed down to Newport, RI to participate in the MSCPA Karter Kup Tennis Scramble at the International Tennis Hall of...

Read More »

Beware: Teleworking Arrangements May Cause State Tax Withholding Issues

During the COVID-19 pandemic, many employers shut down their regular workplaces, either partially or wholly, as a safety precaution and instructed their employees to work from home. While some employees have...

Read More »

Samet Participates in the Neponset River Regional Chamber Golf Tournament

On Monday, several members of our team participated in the Neponset River Regional Chamber Golf Tournament. Congratulations to Risë Fanger, who showed off her golf swing and took first place...

Read More »

Deadline Coming: Follow Up on Your PPP Loans

Payroll Protection Plan (PPP) loans were a lifeline for many small business owners during the worst of the pandemic-driven economic slowdown. In total, the Small Business Administration (SBA) approved nearly...

Read More »

Should You Consider an Employer Roth 401(k) Account?

Nowadays, many employer retirement plans give employees the option of contributing to designated Roth accounts (DRAs). According to a 2020 survey, 75% of employer plans now offer DRAs, which are...

Read More »

Curtailing Tax Surprises with Cyptocurrency

As investing in Bitcoin, Dogecoin and other cryptocurrencies becomes increasingly popular, investors need to understand the potential tax ramifications. Unlike traditional currency, the IRS views cryptocurrency as property for federal...

Read More »

Compensation vs. Dividends: Which Classification Is Appropriate?

The U.S. Tax Court recently ruled that payments made to a corporate taxpayer’s three shareholders were dividends — not compensation for personal services rendered. The court’s reasoning also may be...

Read More »

Samet July Promotions

We are excited to announce that several members of the Samet team have been promoted this summer! Congratulations to Paul Ford, Olga Boric, Robert Dickson, Edward Hurst, Brooke Munafo, Hannah Riley, Destynee Teixeira and Claudia Volk on your achievements....

Read More »

Samet Recognized in INSIDE Public Accounting’s Top 300 Firms of 2021 List

Samet has been acknowledged in INSIDE Public Accounting’s 300 Firms list! IPA, the award winning newsletter for public accounting, annually recognizes the largest accounting firms by net revenue. The companies...

Read More »

Building Block: Understanding the Alternate Valuation Date

When an individual dies, the executor is faced with an important decision that has the potential to impact the taxes owed by the estate and its heirs.1 The executor will have...

Read More »

Do You Owe the Nanny Tax?

The COVID-19 pandemic has changed the dynamics of many households. In most cases, schools stopped or limited in-person instruction, causing many children to engage in at-home learning. Some families moved...

Read More »

Qualifying for Tax Breaks for a Dependent Parent

For many families, the tables may turn, and adult children provide financial support for their parents. For example, you might have moved your in-laws from a long-term care facility into...

Read More »

7 Valuable Deductions for Self-Employed Individuals

If your business was forced to close due to the pandemic, you may be itching to get back in the game. Or maybe you’re looking to fulfill a lifelong dream...

Read More »

As the Economy Warms Up, Will You Be Ready?

Preparing for a surge in demand for your business’s products and services doesn’t mean you have to go out on a financial limb. But some contingency planning may be in...

Read More »

How Landlords Can Cope with Pandemic Fallout

How can tenants pay their regular monthly rent bills if they’re out of job? As unemployment skyrocketed due to the COVID-19 pandemic, Congress enacted a series of laws designed to...

Read More »

Succeeding At Business Succession

Inc magazine reported that sixty-six percent of small-business owners have no formal succession plan.1 While the number may shock you, it probably doesn’t surprise you since so many small business owners are...

Read More »

Don’t Overlook a Roth IRA if You Are Self-Employed

Saving for retirement on a tax-advantaged basis should be on nearly everyone’s financial “to do” list, though in this current economic crisis, you may need to put it on the...

Read More »

Six Key Tax Breaks that Homeowners May Be Able to Claim

The days of classic “tax shelters”— such as cattle breeding or oil drilling deals — are long gone. But at least one major tax shelter is still standing: Your home....

Read More »

Know Your OSHA Obligations if COVID-19 Strikes Your Business

Not all employers are bound by the recordkeeping and reporting requirements established by the Occupational Safety and Health Administration (OSHA). Generally, an employer must have more than 10 employees to...

Read More »

Tax Planning When Saving for Your Kids’ Education

Here’s a little-known secret for parents planning to send their children to college in the future: Some of the tax-saving moves you make now could hurt your student’s chances for...

Read More »

The Evolution of the Employee Retention Credit

The pandemic has adversely affected many sectors of the U.S. economy, causing widespread job losses. At the start of the national emergency, Congress created a novel tax break — the...

Read More »

Samet’s Danny Waung Takes First Place in MSCPA Virtual 5k

On March 20, the MSCPA held their first virtual 5k walk/run. The organization raised a total of $3,013.43, which will help fund future scholarships and CPA Exam vouchers.   Of...

Read More »

Big Changes to the Child Credit for 2021

The American Rescue Plan Act (ARPA) significantly liberalizes the rules for the federal child tax credit, which means more money in the pockets of eligible parents this year. However, the...

Read More »

COVID-19 Relief: Overview of the New American Rescue Plan Act

The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021. The new law will provide roughly $1.9 trillion in much-needed financial relief to individuals, businesses, not-for-profit organizations,...

Read More »

Samet Participates in the MSCPA Virtual 5k Fundraiser

On Saturday, several members of our team sprung into action and welcomed spring by participating in the MSCPA Virtual 5k Fundraiser. Below are a couple of photos from team members in...

Read More »

Last-Minute Tips for Your 2020 Personal Return

Goodbye, 2020. Hello, tax season. Individual taxpayers have until April 15, 2021, to pay Uncle Sam for taxes owed for 2020. (Remember, you can extend the deadline for filing your return...

Read More »

International Women’s Day

This International Women’s Day, we are celebrating the powerful women in all departments at Samet who consistently bring their strength and expertise to our firm. Today and every day, we...

Read More »

Act Fast: PPP Changes Provide Greater Access for Smallest Businesses

The Biden Administration announced changes to the Paycheck Protection Program (PPP) to increase lending to smaller businesses and help ensure equitable distribution of loans to them. But qualified businesses may...

Read More »

Samet Featured in TAG Alliances Annual Review 2020

Samet’s international alliance, TAG Alliances, has recently published its Annual Review 2020. Reflecting the many changes that the world experienced in 2020, the Annual Review is presented in a new interactive and...

Read More »

Ways to Fully Deduct Business-Related Meals

Restaurants have struggled mightily during the COVID-19 pandemic. Thankfully, they’re specifically targeted for a new tax relief measure found in the massive Consolidated Appropriations Act (CAA), which became law on December...

Read More »

Virtual Valentines for Children at Boston Children’s Hospital and St. Jude

This Valentine’s Day, we are spreading love and positivity to the courageous children at Boston Children’s Hospital and St. Jude by sending valentines with encouraging messages and making donations. To...

Read More »

The Homebuyer’s Dilemma

Fifteen-year mortgages are popular among some homebuyers who want to get rid of the debt in less time and save a bundle in interest expenses. With a 15-year mortgage, the interest...

Read More »

Important Tax Figures for 2021

The following table provides some important federal tax information for 2021, as compared with 2020. Some of the dollar amounts are unchanged and some changed only slightly due to inflation. Social...

Read More »

PPP Loan Changes Included in the New Appropriations Act

The Consolidated Appropriations Act (CAA) extends, liberalizes and expands the Paycheck Protection Program (PPP). Originally established by the CARES Act, the PPP expired on August 8, 2020. Now the CAA...

Read More »

Tax Consequences of Borrowing From a Retirement Plan

If your company has a qualified retirement plan or you have set one up in self employment — such as a 401(k), profit-sharing, or Keogh plan — the participants might be allowed to borrow from...

Read More »

Shawn Huxley Becomes ERISA Accounting and Auditing Committee Co-Chair

Samet’s Shawn Huxley has become the co-chair of MSCPA’s ERISA Accounting and Auditing Committee. When asked about his goals and plans for the Committee, Shawn said that he is “hoping...

Read More »

The Tax Implications of Closing a Schedule C Business

Unfortunately, many businesses have already been forced to close their doors due to the economic fallout from COVID-19, and more will surely follow. Closing a business has important federal income...

Read More »

Theodore Samet Passes Away at Age 96

It is with great sadness that we announce the passing of Theodore Samet, the founder of Samet & Company. Ted’s undeniable drive, love for accounting, and commitment to clients and...

Read More »

Samet 2021 Promotions

We are ringing in the New Year with several Samet promotions! Congratulations to Taylor Nettleship, Rise Fanger, James Alexander, Erin Kirkaldy, Libby Gajewski, Anthony Lorusso, Hayley Payne, and Sarina Shinko....

Read More »

Samet Makes Forbes List of America’s Best Tax and Accounting Firms for 2021

We are proud to announce that Samet was named to the Forbes list of America’s Best Tax and Accounting Firms for 2021! For the second consecutive year, Forbes released this...

Read More »

Should You Buy or Lease Equipment?

If your business is in a position to acquire equipment or machinery, management faces a tough decision: Should you lease it, or should you buy it? There’s no universal “right” answer....

Read More »

Year-End Estate Planning Tips for 2020

Most people aren’t currently exposed to the federal estate tax, thanks to the generous unified federal estate and gift tax exemptions. However, there are still good reasons to review your estate...

Read More »

Be on High Alert for Ransomware Attacks

The FBI has warned of a staggering increase in ransomware attacks against businesses since the start of the COVID-19 pandemic. Here’s what business owners and managers should know about these attacks...

Read More »

Samet’s Walking Competition and Fundraiser for T1D Comes to a Close

This year’s Juvenile Diabetes Research Foundation (JDRF) One Walk took place on November 1st, but the Samet staff decided to make it a month-long event in hopes to bring more awareness...

Read More »

2020 Year-End Tax Planning Ideas for Small Businesses

Small business owners still have time to make tax planning moves to lower their 2020 federal income tax bills — and possibly lay the groundwork to save taxes in future years....

Read More »

How to Save Taxes in 2020 and Beyond

It’s time to implement strategies to help reduce your 2020 federal income tax bill and position yourself for future tax savings. Here are some ideas to consider before year end. Gaming...

Read More »

Samet Participates in JDRF Virtual One Walk

This fall, Samet is participating in the Juvenile Diabetes Research Foundation (JDRF) One Walk and joining them in their mission to create a world without type 1 diabetes. Samet’s managing...

Read More »

Home Office Deductions in the COVID-19 Era

Have you been working from home during the COVID-19 crisis? Join the club. Approximately 42% of the American workforce is currently working from home full-time, according to a recent study by...

Read More »

7 Expiring Tax Breaks for Individuals

Several significant federal tax breaks are set to expire at the end of 2020, unless Congress renews them. Lawmakers customarily extend these so-called “extender” provisions for another year or two, sometimes...

Read More »

How the Current Tax Law Affects Charitable Giving from IRAs

For charitable donors, the Tax Cuts and Jobs Act (TCJA) provided some tax breaks and took away others. Here’s what charity-minded individuals need to know. Increased Charitable Deduction Limit Under prior...

Read More »

You May Want to Separate Real Estate Assets from Your Business

Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company...

Read More »

Taxes on Roth IRA Withdrawals Today

If you’re experiencing financial distress during the COVID-19 crisis, you might be thinking about tapping into your Roth IRA to improve your cash situation. But before withdrawing money from a Roth...

Read More »

Back to the Future: Prior-Law Kiddie Tax Rates Retroactively Reinstated

Do your children or grandchildren receive unearned income from investments? Federal tax law contains provisions that are designed to prevent high-net-worth individuals from shifting investment income to children and young adults...

Read More »

How to Avoid Penalties on Early Retirement Account Withdrawals

Economic fallout from the COVID-19 crisis may cause some cash-strapped individuals to default on loans they’ve taken out from company qualified retirement plans, including 401(k) and profit-sharing plans. Defaulting on a...

Read More »

Who Will Run Your Business After You?

If you’re a business owner, do you have a plan in place that names who’ll follow you as head of your company? You may feel you’re too busy running the business...

Read More »

A Good Time for Making Tax-Smart Family Loans

During the COVID-19 crisis, you may want to loan money to a family member in need of financial assistance. However, before writing out a check, you should review the federal...

Read More »

Five Reasons You May Still Need Life Insurance After Retirement

Every stage of life has its own unique financial planning and insurance needs and retirement is no different. If your life insurance policy hasn’t changed in twenty years, the coverage it...

Read More »

Last-Minute Strategies for Businesses that Deferred Filing Tax Returns

During the COVID-19 crisis, some key tax deadlines were postponed until July 15, 2020. If your business and/or personal federal income tax return is still awaiting completion, you may have significant...

Read More »

Plan for Employee Safety as Employees Return to Work

Chances are, employers don’t need the force of law to make them care about the health of their employees, especially during the novel coronavirus (COVID-19) pandemic. But it’s still important to...

Read More »

Effects of COVID-19 on Retirement Plans

In a time of growing uncertainty, it is important to understand the effects of COVID-19 on retirement plans. The infographic below displays several provisions of the CARES Act that apply...

Read More »

Top Plan Failures and Prevention Practices

Top Plan Failures: Failure to follow the terms of the plan document. Failure to update the plan document to reflect recent law changes. Failure to satisfy ADP/ACP testing requirements (exclude...

Read More »

When the Gift of Giving Brings a Tax on Receiving

Did you receive a cash gift or job bonus last holiday season? If so, you may have a tax surprise from the IRS in April. In Nerd Wallet’s article, Samet’s...

Read More »

New Look, Same Samet – We’ve Rebranded!

At Samet, we are easing into 2020 with a fresh new look that embodies our dedication to clients and reflects the core ethos of our firm. Our new brand identity...

Read More »

Tax Considerations for Craft Brewery Tasting Rooms

Tasting rooms allow craft breweries to gain a new source of revenue and to form personal connections with their customers. However, it is important to consider the potential tax implications...

Read More »

2020 Tax Season Expectations According to Practitioners

With a year of the Tax Cuts and Jobs Act under their belts, practitioners are hopeful that this tax season will be more smooth sailing. In Accounting Today’s article, tax...

Read More »

Responsibilities and Common Risk Areas of Fiduciaries

Are you a Fiduciary? You might be and not even know it. The key factor in determining if the individual or entity is a fiduciary is whether they are exercising...

Read More »

Bentley University Hosts 2020 Women on Boards National Conversation

On November 21, Bentley University held 2020 Women on Boards National Conversation on Board Diversity. The conversation was “How Can We Help Each Other and Seek Allies to Find a...

Read More »

Samet Welcomes Cynthia Casey, Allison Gaines, and Risë Fanger to the Team

Certified Public Accounting (CPA) firm, Samet & Company PC (Samet),is pleased to announce that Cynthia Casey, CPA, Allison Gaines, CPA, and Risë Fanger have joined the firm. Cynthia Casey, CPA joined Samet as a Manager and...

Read More »

Samet’s International Alliance Ranked Third in the World

We are pleased to announce that our international alliance of independent accounting and professional services firms, TAG Alliances®, has been recognized by Accountancy Age as one of the top three accounting alliances...

Read More »

Samet Creates Encouraging Cards for Children Fighting Cancer

This holiday season, we joined the Jessie Rees Foundation in their mission to help every kid fighting cancer to Never Ever Give Up. Throughout the month of November, we hosted...

Read More »

Plan Eligibility Trends and Increasing Participation

The main reason employees participate in a benefit plan is to save for retirement. In a study conducted by Samet & Company, PC, based on employee benefit plans that were...

Read More »

Josh Levine and Tom Attura Promoted to Managers

Samet is pleased to announce that Josh Levine, CPA and Tom Attura, CPA have been promoted to Managers. Attura provides accounting and tax services for clients in a variety of industries including wholesale...

Read More »

Samet Hosts a JoyDrive for Children Battling Cancer

This holiday season, Samet is joining the Jessie Rees Foundation in their mission to encourage every child battling cancer to Never Ever Give Up, or “NEGU.”  Jessie Rees was 11...

Read More »

Choosing the Right Investment Options to Suit Your Goals

There is a diverse mix of investment options that a defined contribution plan may offer to its participants. The plan sponsor should aim to provide a sufficient number and variety...

Read More »

How to Land Your Dream Job According to Experts

When it comes to landing your dream job, there’s a lot more preparation required than simply wearing your best business attire. Samet’s Risë Fanger was quoted in an article on...

Read More »

Fee Arrangements – Put a Process in Place

Plan sponsor and participant disclosures have raised the awareness of plan fees. Are the fees being charged prudent and the amount reasonable in light of the service being provided?  Is...

Read More »

Samet’s Sponsorship of the 2019 National Conversation on Board Diversity

We are pleased to announce that we will be sponsoring the 2019 National Conversation on Board Diversity, 2020WOB’s signature fundraising event. It is with great pride that we are part...

Read More »

8 Methods to Increase Plan Participation

Plan administrators may be noticing a lower than expected participation rate in their employee benefit plan. Increasing plan participation is advantageous not only to employees, but also to the plan...

Read More »

Kristie DeLuca Serves on the 2020 Women on Boards Steering Committee for Second Year

Samet’s Kristie DeLuca is serving on the 2020 Women on Boards Steering Committee for its 2019 National Conversation on Board Diversity. 2020WOB is a national education and advocacy campaign devoted...

Read More »

Samet Recognized in the INSIDE Public Accounting’s Top 400 Firms of 2019 List

For the second consecutive year, Samet has been acknowledged in the INSIDE Public Accounting’s 400 Firms list! IPA, the award winning newsletter for public accounting, annually recognizes the largest accounting...

Read More »

Samet Stars Participate in the MSCPA’s Karter Kup Tennis Tournament

Four members of the Samet team attended the Massachusetts Society of CPAs’ Karter Kup Tennis Tournament at the Tennis Hall of Fame in Newport, RI. The group had a great...

Read More »

The Benefits of Forming an Investment Committee

Samet’s Dennis Giangregorio, Shawn P. Huxley and James Alexander explore the many reasons a company’s plan sponsor should consider forming an investment committee. To read the article published on BenefitsPro...

Read More »

Samet’s Kickball Team Wins the BSSC Championship!

Congratulations to Samet’s kickball team for taking first place in the kickball championship at Boston Ski and Sports Club! All of us at Samet are proud of your hard work...

Read More »

The Detrimental Effects of Late Deposits

Plan Sponsors have an important fiduciary responsibility to ensure that all amounts withheld from an employee’s check are remitted to the Plan’s custodian without exception. However, this responsibility extends one...

Read More »

Dennis Giangregorio Promoted to Partner

Samet is pleased to announce that Dennis Giangregorio, CPA has been promoted to a partner of the firm as of July 1, 2019. PR Web: To read the full press...

Read More »

The Pros of Working at a Midsize Professional Services Firm

Samet’s Kristie DeLuca, CPA, acknowledges her admiration for the balanced, flexible, and collaborative work environment she experiences on a day-to-day basis working at a midsize accounting firm. To read more...

Read More »

Natural Disasters & Retirement Plans

Shawn Huxley and James Alexander’s article entitled, “When natural disasters and emergencies strike: Retirement plans & hardship distributions,” was recently published in Benefits Pro (subscription required). Click here to read!

Read More »

EBSA Study and Its Findings

Samet’s Shawn Huxley, CPA, MSA, and James Alexander detailed the most recent EBSA study findings in the article below.

Read More »

3 Times You Should Consider Business Valuation

Samet’s Matt Paul, CVA, MBA, discusses appropriate times to consider business valuation here!

Read More »

Easy Ways for Small Businesses to Use Data Analytics

Harnessing the power of big data and analytics can be difficult for small businesses. Limited time, experience, and finances are often the main obstacles preventing small business owners and executives...

Read More »

Samet & Company PC Promotes 3 as Directors of the Firm!

Samet & Company PC is pleased to announce that Dennis Giangregorio, CPA; Shawn Huxley, CPA, MSA; and Helen Schussler, CPA, CEP have been promoted to Directors of the firm. To...

Read More »

Doing Business in China: Challenges And Opportunities Event!

Doing Business in China:  Challenges and Opportunities Date: November 19, 2018 Time: 5:30 – 7:30 p.m. Call if interested (617)731-1222! Doing business in China can be daunting, but it also presents much...

Read More »

Kristie DeLuca Joins 2020 Women on Boards Host Committee

  Kristie DeLuca is serving on the 2020 Women on Boards Host Committee for the 2018 National Conversation event scheduled to take place November 15, 2018 at 5:30 p.m. at...

Read More »

Samet’s Robert Miller Featured in Boston Business Journal

Samet’s new Assurance Partner Robert Miller has been featured in Boston Business Journal. To view click here!

Read More »

Kristie DeLuca to Present for The Boston Club on New Tax Bill

On April 24, 2018, Kristie DeLuca, CPA will lead a discussion on the new tax bill and its impact on members of The Boston Club.

Read More »

Paul Flanagan Discusses Life at Samet in the New England Real Estate Journal

Samet’s Paul Flanagan, Partner, was featured in the March 16th edition of the New England Real Estate Journal! Paul discussed his interests and life at the firm. Check out the...

Read More »

Kristie DeLuca and David Marcus Promoted to Partners

Samet is pleased to announce that effective January 1, 2018 Kristie DeLuca and David Marcus have been promoted to Partner. Kristie DeLuca Kristie DeLuca joined Samet in 2005 as an...

Read More »

Samet Merges with RSA

Samet & Co. was featured in Inside Public Accounting on its merger with RSA. A link to more information can be found here. Samet & Co. was recently mentioned in MSCPA news on...

Read More »

Tax Cuts & Jobs Act Updates

On December 22, 2017, the Tax Cuts & Jobs Act (TCJA) was signed into law amending the Internal Revenue Code of 1986. The following documents go into detail of exactly...

Read More »

Overview of Provisions of the TCJA Affecting Individuals

The recently enacted TaxCuts and JobsAct (TCJA) is a sweeping tax package. Here’s a look at some of the more important elements of the new law that have an impact...

Read More »

Samet at Trillium's New Roslindale Garden

The Samet team attended the grand opening of Trillium’s Roslindale Garden at the Substation. The team had a great experience learning about Trillium’s commitment to the Substation for the upcoming...

Read More »

Samet Volunteers with the Ellie Fund

Samet employees Brooke Munafo (right) and Hannah Riley (left) volunteered at a recent Ellie Fund event. Munafo and Riley got an inspiring glimpse at how the Ellie Fund’s six staff...

Read More »

Jay Kessler, managing shareholder of Samet & Company, PC, joins the board of the College Diabetes Network

Chestnut Hill, MA. November 27, 2017 –Samet & Company PC today announces that Jay Kessler has joined the board of directors of the College Diabetes Network (CDN). Mr. Kessler is...

Read More »

Industry Trends in Craft Brewery

Gose or no-go? More competition moving in or more brewpubs shuttering? In 2017, craft brewing continues to be a thriving and evolving industry with millions of beer-loving fans around the...

Read More »

T shares: One Option for Complying with the Department of Labor's Fiduciary Rule

It only went into effect on June 9th, but the Department of Labor’s fiduciary rule, also known as the conflict of interest rule, is already changing the way things are...

Read More »

Shawn Huxley at BBJ Book of Lists Gala

Our own Shawn Huxley (center) is featured with Steven Buccigross of BlumShapio and Josh Heapes of US Trust at the Boston Business Journal’s 2017 Book of Business Gala at the...

Read More »

Samet rises in BBJ List of Accounting Firms

In the list published on February 19 by the Boston Business Journal, Samet ranked as the 27th largest CPA firm in Massachusetts with 51 employees. This is a rise from its 2015...

Read More »

Congress Tax Extenders in the 2015 PATH Act

Congress has once again extended the “extenders,” a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the...

Read More »

Norman Posner co-chair of JCHE Jubilee 50 Year Celebration

Norman Posner, CPA, Shareholder of Samet, co-chaired the Jewish CommunityHousing for the Elderly (JCHE) Jubilee Celebrating 50 Years with Merle Grandberg (pictured left). The event raised a record amount for...

Read More »

Samet Named To The 2015 INSIDE Public Accounting Best of the Best Firms to Watch List

Samet  is proud to announce that it has been named to INSIDE Public Accounting’s Best of the Best Firms to Watch list for 2015. INSIDE Public Accounting’s (IPA’s) annual Best of the...

Read More »

Transportation Act contains Important Changes to Tax Return Due Dates

On July 31, 2015, President Obama signed into law P.L. 114-41, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.” Although this new law was primarily designed...

Read More »

Non-profit Financial Statement Presentation Expected to Change

A change in financial presentation is coming for all non-profits.  While the details open for comment, generally the sentiment of the change will be related to how non-profits present information on...

Read More »

Required Employee Benefit Plan Fee Disclosures

This post is part of a larger Plan Sponsor’s Guide to 401(k) and 403(b) plans.  Read the full guide. Plan sponsor/Service provider Initial disclosure: Required within a reasonable period before...

Read More »

Samet walks for Epilepsy New England

Epilepsy New England hosted its 22nd Annual Boston Walk for Epilepsy, the organization’s largest fundraising walk of the year.   Samet sponsored the event and was represented by a team...

Read More »

Samet shareholders in Scotland

Samet Shareholders, Randy Smith and Norman Posner, visited Edinburgh, Scotland for a TIAG conference this month where they had the opportunity to dress in traditional Scottish attire.   Looking good gentlemen!

Read More »

Are you a Fiduciary?  You might be and not even know it.

This article is part of a Plan Sponsor’s Guide to 401(k) and 403(b) Plans.  Download it today! Are you a Fiduciary?  You might be and not even know it. The...

Read More »

19 Top Employee Benefit Plan Failures

This list is part of a larger report on employee benefit plans that can be found HERE. In no particular order, here are 19 top plan failures for employee benefit...

Read More »

8 Ways to Increase 401(k) Plan Participation and Why It’s Important

This article is part of Samet’s Plan Sponsor’s Guide to 401(k) and 403(b) Plans.  Find the full Guide here. Plan administrators may be noticing a lower than expected participation rate...

Read More »

Jay Kessler Presented at Boston Fiduciary Summit for 401(k) Plan Sponsors

On Wednesday, March, 24, Jay Kessler presented at the Boston Fiduciary Summit at the UMASS Club in Boston. Jay talked about the difference between an IRS audit and a DOL...

Read More »

TIR 15-2 Limited Amnesty for Taxpayers with Certain Liabilities

Status: TIR; Issued Tax types:  Corporate Excise, Estate Tax, Fiduciary Income Tax, Use Tax on Motor Vehicles Summary:  This TIR explains a 60-day amnesty period beginning on March 16 and...

Read More »

New Reporting Requirements for Cross-Border Transactions

Do you conduct business with foreign businesses? If so, you may have a new reporting requirement under the Foreign Account Tax Compliance Act (FATCA) rules that went into effect on...

Read More »

BBJ list of Largest Accounting Firms ranks Samet as 28

In the list published on March 6, Samet ranked 28th among its public accounting firm peers with 49 employees.          

Read More »

Samet releases Plan Sponsor's Guide to 401(k) and 403(b) Plans 2014 Edition

Each year, under the leadership of managing shareholder and employee benefit audit specialist, Jay Kessler, Samet publishes a Plan Sponsor’s Guide to 401(k) and 403(b) Plans based in its decades of...

Read More »

Connecticut Business Entity Tax must be paid again in 2015

The Connecticut Business Entity Tax must be paid again in 2015. The tax is due every other year, so no tax was paid in 2014. The amount of the tax...

Read More »

Samet Celebrity Sighting!

Jay Kessler, managing shareholder, and Joe Goldberg, manager, had the pleasure of meeting Cedric Maxwell, a retired Celtics star turned radio broadcaster, at a recent game.

Read More »

NECN interviews Norman Posner about Costly Tax Mistakes to Avoid

Norman Posner, shareholder, was interviewed by Peter Howe of NECN on Costly Tax Mistakes to Avoid for the station’s Money Saving Mondays series.    View the full video here: If...

Read More »

Should You Forgo a Personal Exemption So Your Child Can Take the American Opportunity Credit?

If you have a child in college, you may not qualify for the American Opportunity credit on your 2014 income tax return because your income is too high (modified adjusted...

Read More »

Massachusetts DOR Issues Proposed Regulation- Market Based Sourcing

Massachusetts tax law was changed for tax years beginning on or after January 1, 2014 to require a multi-state taxpayer to apportion their receipts from services based on where the...

Read More »

Helen Schussler Awarded Certified Estate Planner Designation

Our Tax Manager, Helen Schussler, has been awarded the CEP designation from the National Institute of Certified Estate Planners. Helen has over 15 years of experience in working with families...

Read More »

Jay Kessler asked to return as speaker for Boston Fiduciary Summit

  Jay Kessler, Managing Shareholder, has been asked to return as a speaker at the 2015 Boston Fiduciary Summit on March 25.  The summit is an educational workshop for CFOs, Human...

Read More »

Client open house event photos

Thank you to all who attended our event!    

Read More »

CPAs – Are You Ready For Tax Season?

Our own Cathy Dana and Helen Schussler were published by the Massachusetts Society of CPAs for their article “Are YOU ready for tax season? 6 Tips for Massachusetts CPAs” giving advice...

Read More »

IRS Standard Mileage Rates for Your 2015 Taxes

The standard mileage rates for the use of a car, van, or pickup truck in 2015 are: 57.5 cents per mile for business miles driven, up 1.5 cents from 2014...

Read More »

Tax Changes for Businesses and Health Plans Taking Effect in 2015

There are many important tax changes taking effect in 2015. They are the result of the Tax Increase Prevention Act of 2014 (TIPA) as well as other tax legislation, or...

Read More »

Tax Planning 2014: 10 Tax Planning Strategies for Businesses & Business Owners

In case you missed it, please read our recent tax planning articles, Tax planning 2014:  If and When Congress Decides to Act and Tax Planning 2014:  15 Tax Planning Strategies for...

Read More »

Tax Planning 2014: 15 Tax Planning Strategies for Individuals

If you missed it, please review our recent article, Tax planning 2014:  If and When Congress Decides to Act, which outlines the tax breaks that Congress has on its docket...

Read More »

Tax planning 2014: If and When Congress Decides to Act

Update:  In summary, everything that was in limbo has passed (once it has the President’s signature).   On December 16, Congress passed a tax extender package, known as the “Tax Increase...

Read More »

Kristie Cotter CPA Interviewed By Alma Mater NCC

Kristie Cotter, CPA, a Director with Samet, was interviewed by her alma mater, North Central College in Naperville, IL.  The college considers hers an alumni success story. She didn’t always...

Read More »

Samet Shareholders Attend TIAG International Conference in Hong Kong

  John Czyzewski, co-managing shareholder, and Norman Posner, shareholder at Samet & Company PC recently attended TIAG’s 31st international conference in Hong Kong. The conference, which took place on October 20...

Read More »

Edgar Allan Poe Foundation Statue Unveiling

Norman Posner, shareholder, attended the ceremony for the unveiling of the Edgar Allan Poe statue by Stefanie Rocknak.  This statue was commissioned by the non-profit, The Edgar Allan Poe Foundation of...

Read More »

Jay Kessler Participates in Juvenile Diabetes Walk Boston

On September 27, 2014, co-managing shareholder, Jay Kessler participated in the JDRF Walk for juvenile Diabetes.  His team, Natalie’s Neighborhood, collectively raised over $5,000.  

Read More »

Be Aware – That Caller May NOT be from the IRS

There are stories every day of scammers calling or emailing individuals and business owners pretending to be from the IRS and making dramatic claims of investigations and penalties.  It can be stressful...

Read More »

Congratulations to Joe Goldberg on His Wedding Day

Samet manager, Joe Goldberg, and Meghan Albert married in Newport, RI on Saturday, September 13.   All of us at Samet send heartfelt best wishes to the couple.  

Read More »

How to Protect Yourself From Underpayment Penalties

You can be subject to penalties if you don’t pay enough tax during the year through estimated tax payments and withholding. Here are some strategies to protect yourself: Know the...

Read More »

What’s the Difference Between a Compilation, Review, Audit?

The three basic levels of financial statement services are compilation, review, and audit.  There are other steps/procedures involved in all levels, but this is a basic summary: A Compilation provides...

Read More »

Top Takeaways from 2014 Boston Fiduciary Summit

Jay Kessler was a keynote speaker at the July 2014 Boston Fiduciary Summit.  This event was held for the benefit of employee benefit plan fiduciaries to learn trends and best...

Read More »

Jay Kessler Speaks at 2014 Boston Fiduciary Summit

  On July 17, Jay Kessler will speak at the Boston College Club for an audience of CFOs, HR Directors, business owners, and fiduciaries of employee benefit plans. Topics to...

Read More »

TIAG Alliances 2014 Mid-Year Report released

View the TIAG Alliances 2014 Mid-Year Report Excerpt from the report: As we pass the mid-year point in 2014, we can report very good progress on many fronts.  Our recruiting...

Read More »

Samet & Company, PC Creates New Director Role and Promotes Three

July 1, 2014 – Chestnut Hill, MA, USA – To recognize the next generation of leaders in the firm, Samet & Company, PC has created a new role at the...

Read More »

Samet & Company PC Attends TIAG International Conference in Miami

Samet shareholders John Czyzewski, and Norman Posner recently attended TIAG’s International Conference in Miami. The conference, which took place on May 5th through 7th, provided TIAG® members with the opportunity to...

Read More »

It’s Not Too Late To Make A 2013 Contribution To An IRA

Tax-advantaged retirement plans allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit...

Read More »

Your 2013 Return May Be Your Last Chance For 2 Depreciation-Related Breaks

If you purchased qualifying assets by Dec. 31, 2013, you may be able to take advantage of these depreciation-related breaks on your 2013 tax return: 1. Bonus depreciation. This additional...

Read More »

2013 Higher Education Breaks May Save Your Family Taxes

Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. A couple of credits are available for higher education expenses:...

Read More »

Jeff Swersky re-joins Samet as Shareholder

Jeffrey Swersky, CPA, MBA, MST re-joins Samet & Company, PC as a shareholder of the firm. Most recently Swersky was a shareholder with Braver PC, a Needham based CPA firm....

Read More »

Samet & Company, PC Announces New Co-Managing Shareholders

Jay Kessler and John Czyzewski named CPA firm’s next generation of leadership. Pictured above:  John Czyzewski, Norman Posner, Jay Kessler The public accounting firm, Samet & Company, PC, today announces...

Read More »

Scroll to Top