In this episode, Dan & Ian discuss stimulus checks. They also illuminate the issue of prior stimulus checks being missed. Dan & Ian explain the Recovery Rebate Credit, a refundable tax credit available on the 1040 Individual Tax Return for the 2020 tax year. You may be entitled to claim prior stimulus direct payments and be eligible for the one coming up. Please make sure you consult a CPA to ensure you are applying for all necessary and available government assistance. We hope this provides value for you and puts a couple of thousands of dollars in your pocket. 

Recent stimulus bill passed by the House of Representatives: https://youtu.be/Y2e9KImQ1MQ

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

Today the guys in the office came together for the second Edition of the weekly roundup. If you missed it this is an episode format where we discuss topics that are current and interesting to us. This is a mix up from our typical interview and topical style interviews. Please like, share and leave a comment if you want to interact, and thank you for watching! 

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian interview Brea Roper. She is a Gallup Certified Strengths Coach. Brea details her process of strengths-based coaching and how to lean into your own. She takes you on her journey and what led her on this career path. This interview explores how to cultivate culture in your own small business and how to celebrate individuality. We hope you gain some perspective from this interview and if you are interested, please reach out to Brea via the information provide below.

How to contact Brea:
-Website: https://www.brearoper.com
-Email: [email protected]
"The world needs you. Break through the lies, reveal your hidden potential, and live out your unique greatness." -Brea Roper

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian discuss the process of self employed retirement plans. There are four options available for setting up retirement plans: SOLO 401k, SEP IRA, SIMPLE IRA and Regular 401k. As a self employed individual you are still able to enroll in a Traditional IRA or Roth IRA; however, these self employed plans usually provide higher contribution limits and tax-advantaged savings. 

Dan's top three questions for finding the right plan for you...
1. How much can I save? Create a budget
2. Do you have employees? Evaluate staff
3. Are you a participant or eligible for a retirement plan for another job? Side hustle or full-time

SOLO 401k (Individual 401k, One participant 401k): reserved for sole proprietorship, with no employers other than a spouse. 
Employee contribution limits = $19,500, or $26,000 if age 50 or older. 
Employee & Employer contribution limits = $58,000, or $64,000 for people age 50 or older as of 2021

SEP IRA: best for sole proprietor, gets expensive when you have employees
-The employer alone contributes to the fund, there is no annual funding requirement, but when you do contribute, you will need to do so for all of your eligible employees—up to 25% of their compensation, limited to $290,000 annually
Contribution limits = maximum of $58,000 in 2021.

SIMPLE IRA: (savings incentive match program for employees): best for mid-sized businesses, regular 401k with training wheels. Employees and employers can contribute to the plan
Contribution limits = $13,500 in 2021, plus an additional $3,000 if you are 50 or older.
With the SIMPLE IRA, you are 100% vested whenever the employer deposits that into your account. This is definitely a huge difference than the 401k

Regular 401k: the most popular retirement savings plan, typically used for larger businesses
CON: Filing fees, set up trust
CON: Form 5500 - annual filing requirement for 401k
PRO: Roth option, picking investments, salary deferrals, 
PRO: Contribution limits much higher ($19,500 in salary deferrals) than SIMPLE IRA ($13,500) and catch up ($6500 for 401k vs $3000 for SIMPLE IRA)
Customized vesting schedule: EXAMPLE
After one year of service: 0% vested.
After two years of service: 20% vested.
After three years of service: 40% vested.
After four years of service: 60% vested.
After five years of service: 80%vested.
After six years of service: 100% vested.

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian help clarify the confusion surrounding Health Savings Accounts (HSA). Also, they dive deep into the requirements and contribution limits to the plan. Furthermore, they explore Flexible Spending Accounts (FSA) which allow for another option of healthcare savings. Below there is an outline of the episode and further information regarding health savings.

KEY POINTS: Health savings accounts (HSAs) 
-Are like personal savings accounts, but the money in them is used to pay for health care expenses. You — not your employer or insurance company — own and control the money in your HSA. The money you deposit into the account is not taxed. 
-To be eligible, you must be enrolled in a High-Deductible Health Plan (HDHP). Contributions to HSAs generally aren't subject to federal income tax, and the earnings in the account grow tax-free. 
-Contributions can come from you, your employer, a relative, or anyone else who wants to add to your HSA. The IRS does, however, set limits. In tax year 2020, for example, the limit is $3,550 for individuals and $7,100 for families, plus an additional $1,000 "catch-up" contribution for anyone age 55 or older by the end of the tax year. 

KEY POINTS: Flexible Spending Account (FSA)
-Same thing as HSA, except you do not need to be part of HDHP
-Employee of an employer who sponsors the plan
-Can be used for additional medical expenses not covered or explicitly mentioned in HSAs
-Limited to $2,750 per yr per employer 
-Spouse can contribute $2,750 to their own as well
-HSAs are more flexibility than Flexible Spending Accounts (FSAs), which can only be carried over in an amount up to $500 or 2.5 months into the following plan year

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian debate the most well-known retirement savings plan. 401k's are employer sponsored plans that allow you to contribute pre-tax dollars to a retirement plan. This plan is either actively or passively managed by your employer who chooses the investments for you. Since the money is deducted from your paycheck, it reduces your taxable income. Below is some additional information about 401ks. 

1. 2020 Contribution Limits
-19,500 for under the age of 50
-26,000 for those 50 and up
If your employer matches as well the max amount that can be put in is:
-58,000 for under age 50, or 100% of employee compensation whichever is lower
-64,500 for over the age of 50, or 100% of employee compensation whichever is lower

2. Option of Traditional or Roth 401K:
-Traditional allows you to reduce your taxable income now and therefore decrease the amount that you will owe in taxes: In traditional you pay all the tax on the back end
-Roth is contributed with after-tax dollars and then is not taxed on its withdrawal: In Roth you do not pay taxes on earnings or contributions when you withdrawal

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian outline college saving options. As the prices of higher education continue to skyrocket, The Small Business Experience is bringing you tips and tricks to use the tax law to your advantage. Throughout this episode, Dan & Ian explore all the options available to you and the tax impact of your decisions. This is important information for anyone with dependents, grandchildren, etc. Below will include a more detailed outline for the episode.

What is a 529? An investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified education expenses.

Coverdell Education Savings Account (ESA), formally called "Education IRA" : A Coverdell education savings account is a tax-deferred trust account created by the U.S. government to assist families in funding educational expenses for beneficiaries who must be 18 years old or younger when the account is established. The age restriction may be waived for special needs beneficiaries. While more than one ESA can be set up for a single beneficiary, the total maximum contribution per year for any single beneficiary is $2,000.

Coverdell Loan: KEY TAKEAWAYS

-With a Coverdell ESA, if your adjusted gross income exceeds $110,000 for an individual, or $220,000 for a married couple filing a joint return, you’re not eligible to use a Coverdell at all.
-The contributions put toward a Coverdell ESA must be made in cash and are not deductible. Contributions can be made by individuals with modified adjusted gross income that falls within an annual limit. 

529 KEY TAKEAWAYS

What is considered a qualified education expense? 
-Tuition, fees, books, supplies, equipment, computers and room & board. 
-The IRS also allows tax-free withdrawals of up to $10,000 per year, per beneficiary to pay for tuition expenses at private, public and religious K-12 schools.  
-QUALIFICATIONS: Student is enrolled at least half-time, which most colleges and universities consider to be at least six credit hours per term & be a candidate for a degree

https://www.savingforcollege.com/intro-to-529s/what-is-a-529-plan

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian discuss their decision to turn down their first sponsorship opportunity. They explore the importance of integrity when building a brand and valuing your audience. The Small Business Experience more clearly defines their core values and outlines the community they are creating. The commitment to maintain transparent about SBE goals for the channel will always be at the forefront of thought. Small Businesses will always be run and succeed by putting PEOPLE FIRST. We hope you agree. Being kind and respectful will never go out of style. Thank you for following along, more to come. 

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian outline the new proposed stimulus bill. The new bill is estimated to be worth $1.9 trillion and increased direct payments of $1,400 per person. Much of the bills content has extensions of previous aid. Remember, this is a proposed plan from President Biden. At the time of this recording and posting the bill has no been officially signed into law. 

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com

In this episode, Dan & Ian analyze the student loan epidemic. They explain the process of refinancing your private and public loans with practical advice. Also, they detail the process to make it simpler to understand. All resources mentioned in the video are linked down below. Please feel free to research and use the links to better understand your educational obligations. 

Disclaimer: This video/podcast should be used for educational purposes only. Please do not use the content as recommendations or advice. Please enjoy & happy savings!

Student Loan refinance calculator:
https://www.nerdwallet.com/article/loans/student-loans/student-loan-refinance-calculator

Resource to find lenders for student loan refinance:
https://www.bestmoney.com/student-loans/compare-student-loans-refinance?utm_source=google&kw=refinancing%20student%20loans%20rates&c=445466484628&t=search&p=&m=e&adpos=&dev=m&devmod=&mobval=1&network=g&campaignid=1555774927&adgroupid=66748321870&targetid=kwd-314628809666&interest=&physical=9007382&feedid=&a=M968&ts=rates&gclid=CjwKCAiA_9r_BRBZEiwAHZ_v15nM02fKKyizCdz3iDI5RekBwjXOw-n0eSuPZHY9WOybaK9xppzGiBoCMu0QAvD_BwE

What you need to refinance:
1. Proof of graduation
2. Credit score in the 700s
3. Two consecutive pay stubs from employer (to confirm your salary)
4. Payoff Letter from your current loan holder

Example: $100,000 student loan balance (over 10 year loan)
Original: 100k @ 9% monthly payments of $1,266.76
Refinance: 100k @4% monthly payments of $1,012.45
You will save $254 per monthly payments &  $30,517 in interest over the life of the loan
By simply taking advantage of interest rates being low

Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com