In this issue:
  • Tax Corner: Retirement Planning – 401Ks vs. IRAs
  • 6 Steps for Creating a Retirement Strategy
  • SBA Launches Community Navigator Pilot Program
  • Tax Facts
  • Cool Apps
  • Important Dates
Summer Hours, Staff Updates, and Retirement Planning

With the major tax deadlines behind us, the team here at CPA is breathing a huge sigh of relief! Things are a little slower in the summer, allowing us to take some much-needed time off. We have begun observing summer hours, so the office will be closed on Fridays through August 20, 2021.
And on a personal note, we have some staffing news to announce. Anais is getting MARRIED!  On June 12th, Anais will marry Ryan, we are over the moon happy for the two of them. Oh, and did I mention that the honeymoon is in Hawaii?! In other news, Aaron and his family are moving to Texas. But don’t worry, he is not leaving us – he will continue to work for CPA remotely. We wish him and his family all the best on their move.
These slower summer months are a great time to take a look at your retirement contributions and assess whether any changes should be made to help you achieve your retirement goals. A certified financial planner can help with that, so we asked Shireen Daniels from Lighthouse Financial Group to share a few tips for making the most out of your retirement strategy.
Remember, we are here to help you with your accounting and payroll needs, so please don’t hesitate to reach out to us with any questions or concerns!
Susan Clarke & The CPA Team
The summer is a great time to assess your current retirement savings and investments and consider making some changes. The two main ways that individuals save money for retirement are by using company-sponsored 401Ks or individual retirement accounts (IRAs), or a combination of both. A question that we often get from our clients is what’s the difference between 401Ks and IRAs – specifically as they relate to taxes?
Here are a few things to keep in mind…
401Ks
  • 401Ks are retirement plans only offered through an employer.
  • It allows individuals to contribute a percentage of their salary, reducing your taxable income.
  • Contributions are usually made through payroll deductions.
  • Some employers offer a 401K match, where they will match your contribution up to a certain percentage (typically between 2% and 10% of the employee’s salary).
  • You must wait until age 59.5 to withdraw funds or you’ll be charged a penalty fee and taxes on the amount withdrawn.
  • PROS: higher contribution limits; contributions lower taxable income in the year they are made.
  • CONS: investment choices limited to those included in the plan (usually mutual funds).
IRAs
  • These accounts are opened by individuals through a broker or a bank.
  • There are two main types of IRAs: traditional and Roth.
  • Traditional IRAs allow you to contribute pre-tax dollars and you are taxed once you withdraw the funds.
  • Roth IRAs allow you to pay taxes on the contribution now and you won’t have to pay taxes when you withdraw the funds during retirement.
  • PROS: more investment options; able to withdraw funds without penalty for special circumstances; if deductible, contributions reduce taxable income in the year they are made.
  • CONS: lower contribution limits.
How do you know which one is better for your particular circumstances? At CPA, we can answer the tax piece of the puzzle, and for the investment and planning side, we highly recommend clients develop a relationship with a certified financial planner. A CFP can help assess your particular needs, calculate your odds for a successful retirement, and make suggestions for how to best position you to achieve your long-term goals.
We asked Shireen Daniels from Lighthouse Financial Group to share her tips for developing a solid retirement investment strategy.
6 Steps for Creating a Successful Retirement Strategy from Shireen Daniels, Certified Financial Planner
Are you saving enough for retirement? How do you know?
What information do you use to determine if you are on track with your retirement goals or if you need to make adjustments to your savings and contributions to reach your target?
Even the most successful, motivated professionals who are taking steps in the right direction can still be at a loss when it comes to identifying their exact retirement goals and the metrics that need to be checked along the way. 
As a certified financial planner, I help hundreds of professionals create retirement plans that will give them the best chance of meeting their financial goals in the future.
These are the 6 essential steps for creating a successful retirement plan:
Step 1: Examine your current situation. 
To understand where you’re going, you have to know where you are. Gather all of the information that will give you a crystal clear picture of your current earnings, spending, debt, and savings. It’s important to see your WHOLE financial picture, and how your goals work together, not just one investment account.
Step 2: Identify specific goals.
Next, it’s helpful to identify some financial milestones that you want to reach throughout your life and get an idea of what you want your life in retirement to look like. At what age do you want to retire? Where do you want to live and how much money do you anticipate spending to support your lifestyle?
Step 3: Evaluate your progress and your chance of success.
How much have you saved already? Are you currently maxing out your 401K or IRA contributions? Is it going to be enough? A certified financial planner can help you make projections and use sophisticated financial planning software to run calculations to determine if your current savings and contributions will set you up for success in retirement (down to a % of likelihood that your money will last your whole life).
Step 4: Identify courses of action.
This is the meat of your retirement plan. This is where we figure out what changes or adjustments you can make now that will help you hit those targets down the road. These include tax-advantaged savings, smart investment strategies, altering retirement ages or spending, social security maximization, paying off a mortgage, etc. Finding the right strategy or combination that makes sense for you can create a big impact!
Step 5: Implement chosen strategies. 
Once we’ve identified areas to focus on and adjustments to make, it’s time to get the ball rolling!
Step 6: Monitor and update. 
It’s important to know that a financial plan is not just a printed document. This is a living, breathing plan! Your life and needs change, income goes up and down, and your plan must be adjusted to accommodate that as well.
No matter where you are in your journey, working with a Certified Financial Planning Professional may help you better identify your retirement goals and develop a clear roadmap for achieving them. I’m happy to help. You can learn more about me and my services at www.lighthousefingroup.com or email me at shireen.daniels@lpl.com.
SBA Launches $100M Community Navigator Pilot Program to Strengthen Outreach to Businesses in Underserved Communities
As part of the American Rescue Plan, the Small Business Administration launched a new $100M competitive grant program. The Community Navigator Pilot Program will fund grants to organizations that can help strengthen outreach to small businesses owned by socially and economically disadvantaged individuals, as well as women and veterans and connect them to the resources and support they need to get back on track after the COVID-19 pandemic.
Nonprofit organizations, state, local, and tribal governments, SBA resource partners, and other organizations are eligible to apply for a Community Navigator Pilot Program grant ranging from $1 million to $5 million for a two-year performance period. Those eligible to apply must meet and demonstrate abilities to support the requirements of this funding opportunity.
Applicants have until July 12, 2021, to submit their applications at grants.gov. SBA anticipates that award decisions will be made by August 2021.

Al Capone Went To Prison For Tax Evasion, Not Murder!
The famous Chicago mob boss and gangster ran a complex criminal enterprise, but it was taxes that ultimately brought him down. In 1931, he was convicted of tax evasion and fraud and was sentenced to 11 years in prison and fined $50,000 – which at the time was the harshest sentence ever delivered for tax evasion. Source

Cool Apps You Might Find Useful
Trello – A Collaboration Tool for Project Management
We use this app in our firm and really like it! We use it for quick and simple non-client project management efforts. 
Important Dates & Deadlines
June 15, 2021
2nd Quarter 2021 Estimated Tax Payment Due
July 31, 2021
2020 Calendar Year Benefit Plans Form 5500 Due

Clarke Public Accounting | Website