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Scroll down for Medicare and Medicaid information.

S.I.M.P.L.E.  - See below

Our office provides the following services,

speaking your language at the most affordable rates.

Accounting, monthly, quarterly, annual, including write-up

Tax return preparation - individual, business, non-profit & payroll taxes

Computerized accounting system installation and consulting

Computerized payroll and billing services

New business formation & change of business structure

Retirement plan consulting & formation

S.I.M.P.L.E. - SEP - 401-K Solo - IRA

The limits below may be increased for 2018.  The IRS usually announces new limits in late October.

Savings Incentive Match Plan (S.I.M.P.L.E.), available since 1997, allows employers of fewer than 100 employees to offer a 401-K type salary deferral plan to employees.  (Self employed persons can participate, as well).

Up to $13,000 annually can be deferred from federal tax; the employer must provide a small match (3% of employee's annual compensation (as low as 1% and 2% the initial two years)).  Persons over 50 may defer $16,000.  A Solo 401-K allows $19,000 or $25,000 if over age 50.  The SEP maximum is $56,000 (2019) (no catch-up) and the Traditional IRA allows $6,000 or $7,000, if over age 50 .  Certain income phase out limits apply depending on employment and particiation in another qualified plan. The above are for 2019 unless indicated differently.

Easy to set up using Model or Prototype readily available adoption documents.  No annual 5500 returns to file in most cases; simple to administer.

We set up the plan and process the deferral & the employer match and we prepare the contribution checks through our computerized payroll system.

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Buying or selling a business -

Have you ever thought about buying a business or, perhaps, selling your existing business?  Most folks have, but don't know where to start the process.  We can help.  

We can evaluate possibilities and, in association with brokers and lenders, help you achieve your goals.  

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Medicare

Q.  What is Medicare?

 A federal health insurance program for people 65 or holder, people under 65 with certain disabilities and people with End-Stage Renal Disease.

Q.  Is Medicare free? 

There are three parts to Medicare.  Parts B and D require that people pay monthly premiums.  Standard Part B premium will cost $104.90 per month for most folks in 2016.  It is usually withheld from Social Security payments.  The cost is higher for new enrolled recipients and for upper income persons. The Part D premium for prescription drugs is paid to health care plans.  The monthly cost varies depending on the level of plan selected.  Part A is paid by the federal government.

Q.  What is covered?

Part A is hospital insurance; Part B is medical insurance; Part D is prescription drug insurance.

Q.  Must everyone sign up when they become 65? 

If you paid Medicare taxes while you worked, you will be eligible for Part A.  If you did not pay  Medicare taxes, you may get help from your state to buy the coverage.   If you are already receiving Social Security benefits when you turn 65, you will be automatically covered for Part A.  If you are under age 65 and disabled, you will get Medicare Part A after 24 months of collecting Social Security benefits.  If you are getting close to age 65 and not yet collecting Social Security benefits, you must apply for Part A.

Part B, (non-hospital coverage) is your choice.  If already receiving Social Security benefits, you will be automatically enrolled in Part B.    You can opt out of coverage and not pay the monthly premium; however, if you wish to enroll later, you will have to pay a penalty each month you deferred.  There are exceptions for people who have coverage through an employer group.  The penalty provision is supposed to encourage everyone to enroll - not just sick people.

Part D is prescription drug coverage that became law in 2006.  Everyone must enroll unless they already have coverage that the government deems creditable.  Penalties apply for failure to enroll.

Q.  What is Medigap?

Part B covers only 80% of Medicare approved amounts for services.  People can purchase private insurance to cover the other 80% as well as deductibles.  If Medigap coverage is not purchased, individuals are responsible for charges not paid by Medicare.

Q.  If I purchase a Medigap policy that includes prescription drug coverage am I excused from enrolling in Part D? 

No.  The drug coverage in Medigap policies is not considered creditable.  If you have prescription drug coverage through an employer group plan, it probably is creditable.

Q.  Why do some Medigap policies include drug coverage.  New policies sold since 2006 cannot include the coverage.  People with pre 2006 Medigap policies should probably change to a policy that excludes drug coverage.

Q.  Does it matter if I or my spouse continue working after age 65 for an employer who provides health insurance coverage?

Yes, in that case, Medicare coverage would be secondary and the private coverage would be primary.

Q.  Is Medicare available through private insurance companies? Yes, Medicare Advantage Plans are sold by private companies.  Examples would be Keystone Senior Blue and Freedom Blue.  The federal government pays private insurance companies an annual fee for each Medicare recipient they sign up.  

Q.  Where can I find additional information?

Visit www.medicare.gov or call your local social security office.

Medicaid

Q.  What is Medicaid?

Medicaid is a state administered benefit program for the needy, that is overseen by the federal government.  In 2006 the program was drastically overhauled with the result that it is more difficult for persons to give away their assets to family members in order to qualify for Medicaid's long tem care.

For example, the state now looks back 5 years, not 3 years, in determining the value of assets given away and the period of time you are delayed in obtaining assistance.  It is possible for a person to be in a nursing home,  have exhausted their savings, but not become eligible to receive Medicaid benefits for many months or years.

It is advisable to consult an attorney who specializes in elder law.