Feature Articles
Simple Retirement Solutions for Small Business Owners
Offering employee retirement plans is essential for attracting and retaining top talent. Small business owners have streamlined options that avoid excessive administrative friction:
Simplified Employee Pension (SEP) IRAs
Set up using IRS Form 5305-SEP, a SEP plan allows employers to make tax-deductible contributions for eligible workers. For 2026, the maximum contribution limit is the lesser of 25% of compensation or $72,000 per employee. Roth SEP contributions are also permitted on an after-tax basis.
SIMPLE IRA & SIMPLE 401(k)
Designed for employers with 100 or fewer workers. For 2026, employee elective deferrals are capped at $17,000 (plus catch-up contributions for those 50 and older), with straightforward employer match requirements.
How Renting Out Your Vacation Home Affects Your Taxes
Renting your secondary residence triggers distinct tax categories depending on rental frequency:
- The 14-Day Rule: If rented for 14 days or fewer each year, 100% of rental income is tax-free. Operating expense write-offs are disallowed, though mortgage interest and property taxes remain deductible if itemizing.
- Over 14 Days: Income is reportable. If personal use exceeds 14 days or 10% of total rental days, deductions are apportioned and cannot exceed gross rental income.
Revisit Your Emergency Fund Goals
With changing interest rates and economic conditions, keeping three to six months of living expenses in accessible, high-yield cash equivalents protects your long-term retirement accounts from early liquidations.
Tax Tips
- Backup Withholding: What Businesses Should Know: Failure to collect a valid Form W-9 can force businesses to withhold 24% on payments to vendors and contractors.
- Can You Deduct Elder Care Costs? Medical care expenses for an aging parent may qualify as deductible medical expenses or under the Child and Dependent Care Credit if dependency support tests are met.
- IRS Eases Partnership Sale Reporting Rules: Updated IRS administrative guidance streamlines information disclosures when partners transfer or sell partnership interests.
