In the news... What does FDIC cover?The failure of IndyMac Bank has depositors worrying about what funds are insured by the Federal Deposit Insurance Corporation. The Federal Deposit Insurance Corporation (FDIC) is a United Stated government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance which currently guarantees checking and savings deposits at member banks up to $100,000 per depositor. Specifically, the FDIC insures deposits in checking, savings, money market and time deposits such as certificates of deposits (CDs) up to $100,000 per depositor per insured bank. A joint account would be insured up to $200,000. Most retirement accounts are insured up to $250,000. The FDIC does not insure investments in stocks, bonds, mutual funds, life insurance policies and annuities even if these products were purchased from an insured bank. The FDIC also does not insure U.S. Treasury bills, bonds or notes. These government issued investments are backed by the U.S. government. It is important to know that deposit accounts at different banking institutions are insured up to $100,000 at each banking institution. So an individual that banks at institution A and also banks at institution B would be insured up to $100,000 at each institution. (Note: Institution A and B are not branches of the same banking institution.) Also important to know is that accounts held in different forms of ownership may be separately insured up to $100,000 for each account. For example, an individual that has a personal checking account and a revocable trust account at the same bank would be insured on $100,000 for each account. Therefore, it is crucial that accounts are titled properly in order to receive insurance protection. When a bank fails, as in the case of IndyMac Bank, uninsured accounts over $100,000 can be partially reimbursed after some time, with the money coming from sales of the failed bank's assets. In the case of IndyMac, the FDIC plans to give customers at least 50 percent of their uninsured deposit amounts. To verify that all accounts are FDIC insured, contact the FDIC consumer hotline at 1-877-275-3342 or use the deposit insurance calculator at www.fdic.gov. 
| 1. Employee reimbursement plans EMPLOYEE REIMBURSEMENT PLANS CAN SAVE YOU MONEY AND PROVIDE A BENEFIT TO YOUR EMPLOYEES! Expense reimbursement for employees remains a great tax savings vehicle for both employers and employees. Here is how it works:
IRS and State regulation require that taxes be withheld from expense allowances. Remember employees cannot receive both a 1099 and a W-2 form from the same employer for the same time period. All employees and employers must pay payroll taxes on auto or expense allowances. The expense allowance amount would be included in wages and taxes withheld. However, if you set up a qualified reimbursement plan, none of the reimbursed expenses are reported on the employee’s or officer’s W-2 or 1099 form as income. The employee/officer will receive the total amount of the reimbursement for auto, travel or other expenses tax-free! In addition, the company will be able to deduct the amount of the reimbursement from taxable income. If you would like information on how employee reimbursement plans can save you taxes, please call our office at 951-681-2784.
2. Flex Plan or Section 125 Benefit Package BOTH THE EMPLOYEES AND THE EMPLOYER KEEP MORE MONEY! Increases Employees’ Benefits and Take Home Pay Employees who are participants in the Flexible Compensation Plan are reimbursed for eligible expenses with pre-taxed dollars. The tax savings provide increased benefits and the employee takes home a larger paycheck. It’s a great employee benefit.
CONTINUED »
Some Transactions Deserve Special Treatment
Passage of the Tax Reform Act of 1997 is cause to look closer at your tax returns
It’s a good idea to invest a little extra time if you have had the following transactions: Sales of stock and other property »
Gifted or inherited property »
Reinvested dividends »
Sale of home or property »
Car expenses »
Charitable donations »
Estimated tax payments »
Other general suggestions to consider for your appointment »
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