Many parents are looking for ways to save for their child’s education, and a 529 Plan is an excellent way to do so. Even better is that thanks to the passage of tax reform legislation in 2017, 529 plans are now available to parents wishing to save for their child’s K-12 education as well as college (two and four-year programs) or vocational school.
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Wheeler Accountants is thrilled to welcome Jeanne Wiener, CPA and Personal Finance Specialist, to the firm. Jeanne and her husband Joel currently live in San Carlos, CA. In June, Jeanne began heading up our new Estate and Trust group.
Jeanne brings extensive experience to Wheeler. She received her B.A. in Economics from Stanford University, and her Masters in Business Administration, Accounting, from the University of Southern California. Most recently, she worked as a Partner at Young, Craig & Co. specializing in Estate, Trust, and Individual tax for high-net-worth clients. Before transitioning to client tax services, she worked for many years as the Chief Financial Officer at Union Offset, Inc.
Jeanne is passionate about assisting clients with estate and trust matters, knowing what a profound difference it can make in people’s lives and financial futures. We look forward to gaining her expertise as we continue to grow as a firm.
It’s an exciting week for the Wheeler family, as Matt and Jenny Wheeler welcome their 4th child. In fact, with impeccable timing, little Charlotte Maddan Wheeler made her debut bright and early on Mother’s Day morning!
Charlotte Maddan Wheeler
Born on 5/9/21 at 3:31 AM
6 lbs 15 oz
20 inches
Her parents and her 3 older siblings, Samantha, Devon, and Alexandra, are all feeling great.
Congratulations to the Wheeler family!
On May 1st and 2nd, the Jerry Loyola Foundation held its eleventh annual “Battle for the Belt” fundraiser at Spring Hills Golf Course. The foundation’s mission is to provide financial assistance to families battling cancer and to support junior golf. It serves to honor the memory of Jerry Loyola, a skilled young golfer who lost his battle with cancer in 2009 at the age of 24. Wheeler Accountants LLP provides tax preparation services for the foundation and is recognized as a major sponsor.
Dennis Campbell represented the Wheeler Team once more this year, participating alongside fifty-seven other entrants; nineteen in the scratch division, thirteen in the senior scratch division (players 55 years of age or older) and twenty-five in the net division. Greg Auer was the winner of the scratch division, taking the belt with an eleven under par total of 131 and defeating the runner up by thirteen strokes! Steve Perez won the senior scratch division with a two day total of 159 strokes, and Roy Ramirez took the handicapped division with a net total of 137.
Going forward, the tournament directors seek to affiliate with the Northern California Golf Association, and plan for two events each year. The scramble tournament will take place in August and will be the major fund raiser, while the individual golf tournament for the coveted belts will take place each summer. Participating in these events is a great way to honor Jerry’s memory and support a meaningful cause.
Congratulations to all who participated!
Wheeler Accountants is thrilled to share that Alex Baron is this year’s first employee of the quarter!
One of our newest staff accountants, Alex joined the firm in June 2020 and quickly became a rising star. She sets a high bar for herself and her colleagues by achieving consistent results, providing quick turnarounds on tax returns and other projects, and providing excellent insights into our clients’ needs. Alex has played a crucial role this tax season helping the firm keep pace – her fierce work ethic and sharp attention to detail make her a welcome member of the Wheeler Team.
Congratulations to Alex!
The Paycheck Protection Program Extension Act of 2021 was signed into law on March 31, 2021, extending the deadline to apply for a loan by an extra 60 days, from March 31 to May 31, 2021. The law also gives the Small Business Administration (SBA) an additional 30 days after the May 31 deadline to review and process loan applications.
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On March 12, following the American Rescue Plan Act’s approval and signing, the IRS began sending out the third round of Economic Impact Payments. Most payments were sent out via direct deposit, but approximately 150,000 checks were mailed by the Treasury Department as well. Taxpayers who received EIP1 or EIP2 but didn’t receive a third payment (EIP3) via direct deposit will generally receive a check or, in some instances, a prepaid debit card (EIP Card).
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The federal income tax filing due date for individual taxpayers, including individuals who pay self-employment tax, has been extended to Monday, May 17, 2021, for the 2020 tax year. There is no need to file any forms to qualify for this automatic federal tax filing and payment relief.
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Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) contains several tax provisions affecting individuals and families. Let’s take a look:
Continue readingThe Coronavirus, Aid, Relief, and Economic Security (CARES) Act made it easier to access savings in IRAs and workplace retirement plans for those affected by the coronavirus. This relief provided favorable tax treatment for certain withdrawals from retirement plans and IRAs, including expanded loan options.
Distributions: Certain distributions made from Jan. 1, 2020, through Dec. 30, 2020, from IRAs or workplace retirement plans to qualified individuals may be treated as coronavirus-related distributions. These distributions are not subject to the 10% additional tax on early distributions (including the 25 percent additional tax on certain SIMPLE IRA distributions).
Taxes on coronavirus-related distributions are includible in taxable income:
Coronavirus-related distributions may be repaid to an IRA or workplace retirement plan within three years.
If you had an outstanding loan balance when you left employment, the plan sponsor usually offsets the loan balance against your benefit.
RMDs: An IRA owner or beneficiary who received an RMD in 2020 had the option of returning it to their account or other qualified plan to avoid paying taxes on that distribution. RMDs in 2020 that were not rolled over or repaid may be eligible to be treated as coronavirus-related distributions if the individual is a qualified individual. A 2020 RMD that otherwise qualifies as a coronavirus-related distribution may be repaid over a 3-year period or have the taxes due on the distribution spread over three years.
A withdrawal from an inherited IRA to a qualified individual may also be a coronavirus-related distribution. Income from the withdrawal may be spread over three years for income inclusion; however, the withdrawal may not be repaid to the inherited IRA.
The one rollover per 12-month period limitation and the restriction on rollovers to inherited IRAs did not apply to repayments made by August 31, 2020. The RMD suspension did not apply to qualified defined benefit plans.
The CARES Act included special rules for plan loans made to qualified individuals. Plans could suspend loan repayments for up to one year. However, typically, repayments resumed in January 2021 effectively give up to six years (instead of five) to repay a typical plan loan.
As always, don’t hesitate to call the office with any questions:
San Jose: (408) 252-1800
Watsonville: (831) 726-8500
