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403(b) Plans: Required Nondiscrimination Testing

Wednesday, January 20, 2021

One of the benefits of a qualified Section 403(b) retirement plan is that elective deferrals are not subject to nondiscrimination testing. All employer contributions, on the other hand, must demonstrate that contributions do not discriminate in favor of highly compensated employees (HCE). To test for nondiscrimination, contributions or benefits (divided into pay) of the highly […]

Year-End Giving: 6 Disclosure Requirements for Noncash Charitable Contributions

Monday, December 14, 2020

Charitable giving plays a key role in year-end tax planning for individuals and businesses. Nonprofits that are eligible to receive tax-deductible contributions should timely substantiate the donor’s tax deduction by completing the correct disclosure procedure. Upon receipt of noncash contributions, nonprofits should consider these six compliance requirements and disclose charitable contributions accordingly.  1.  Provide a […]

New Standards for In-Kind Donations to Nonprofits

Monday, December 14, 2020

Nonprofits often have contributions to the mission of the organization, which could include accounting and legal services, IT, fundraising events, and even volunteering for program or administrative activities within the organization. Recently, the Financial Accounting Standards Board (FASB) published Accounting Standards Update (ASU) 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for […]

New IRS Guidance under the SECURE Act on Terminating a 403(b) Plan

Monday, December 14, 2020

Terminating a 403(b) plan has historically been challenging for plans utilizing individual contracts. In order for a 403(b) plan (or any 401(a) or 457(b) plan) to be terminated, accumulated benefits under the plan must be distributed to participants and beneficiaries. However, because 403(b) plans are typically funded either by individual or group annuity contracts and […]

Taking Stock of COVID and Its Impact on Nonprofits

Monday, December 14, 2020

The good news is that 2020 will soon be over. The coronavirus (COVID-19) pandemic is causing enormous consequences across the globe and there are few, if any, aspects of our society that are immune to its impact. We know many nonprofits (NFPs) are experiencing uncertainty and concern for the future. Among the many effects of […]