54 THE QUEENS COURIER • QUEENS BUSINESS • AUGUST 9, 2018 FOR BREAKING NEWS VISIT WWW.QNS.COM
queens business
The Elder Law Minute TM
Be Aware of Taxation on Roth
401(k) Employer Matches
BY RONALD A. FATOULLAH, ESQ.
AND DEBBY ROSENFELD, ESQ.
All employees are encouraged
to save for their retirement years.
Retirement savings plans for employees
are presented in two different varieties.
In the traditional 401(k) scenario,
untaxed funds are deposited into
a segregated account for the employee.
These funds, contributed by the
employee, build up over time and
when the individual retires and turns
70 1/2, he must start taking distributions
from the IRA; these distributions
are taxable. The assumption is that
at the time for the distributions, the
recipient will be in a lower tax bracket
than he was during his pre-retirement
years.
ELDER LAW
The Roth 401(k) differs from the
traditional 401(K) in that it is funded
with pre-taxed dollars. The benefit
is that when post-retirement distributions
are made from a Roth 401(k),
they are not taxable.
Notwithstanding the above, there
is a small trap for the unwary with
respect to the Roth 401(k) plans.
Many employers offer to match their
employees’ contributions to their
respective IRAs. If the employer
matches a Roth 401(k), this contribution
is made with pre-taxed dollars.
The employee will have to pay income
taxes on it when he starts taking distributions.
This might be surprising
to anyone who believed that distributions
from a Roth 401(k) would
not be subject to income taxation.
Ultimately, any employer matches to
a Roth 401(k) are treated like traditional
IRAs.
For the year 2018, if a person is over
the age of 50 years, he can contribute
up to $24,500 to a 401(k). The employer
can match as much as it chooses
but, in any given year, the total contribution
cannot exceed $55,000 or
100 percent of the individual’s salary.
Retirement accounts are a significant
component of one’s overall estate
plan. In choosing Roth vs traditional
IRAs as well as other retirement
vehicles, it is helpful to consult with
a financial advisor and an estate planning
attorney for guidance.
Ronald A. Fatoullah, Esq. is the
founder of Ronald Fatoullah &
Associates, a law firm that concentrates
in elder law, estate planning,
Medicaid planning, guardianships,
estate administration, trusts, wills,
and real estate. Debby Rosenfeld,
Esq. is a senior staff attorney at the
firm. The law firm can be reached
at 718-261-1700, 516-466-4422, or
toll free at 1-877-ELDER-LAW or
1-877-ESTATES. Mr. Fatoullah is
also a partner with Advice Period, a
wealth management firm, and he can
be reached at 424-256-7273.
RONALD FATOULLAH
ESQ, CELA*
editorial
Employment Matters – 5 Secrets
of Eff ective Managers
Whether you’re stepping
into a new management role
or you have been managing
staff for many years, here are
a few tips to keep in mind:
Get to Know Your Staff :
Eff ective managers know
that they will only be as
successful as their individual
team members. Th at
begins with listening to your
employees and building trust.
Let your employees know
that you are there to support
them individually and
as a team. Recognize that each member
of your team has individual strengths,
unique personal motivators and their
own communication style. Th e best
leaders will modify their management
style to refl ect the needs of their individual
team members. Getting to know
your team members and learning how
to communicate with them on an individual
level will enable you to lead the
team eff ectively.
Communicate Early and
Oft en: A big part of being
a good manager is listening
to your employees.
Managers who listen more
than they speak can gain
valuable insights into what
is happening in the organization.
Let your employees
know that you care about
their opinions and want to
hear them. Get input from the
team before making changes
and keep an open-door policy
to encourage honest communication.
Regularly scheduled team meetings are
an eff ective way to build strong teams
and inspire team members to creatively
solve problems together.
Set Clear Goals and Expectations:
Employees need to know what is expected
of them. Th is is especially important
during times of change. Meet with each
employee to establish realistic individual
goals and make sure that both you
and the employee understand the necessary
steps to accomplish the goals.
Clearly communicate your expectations
for the team and help them understand
what success means in your organization.
Meet regularly to ensure that you
are holding your team accountable for
their goals and take corrective actions
quickly.
Celebrate Small Successes:
Employees like to feel valued and be
recognized when they have achieved
success. Make it a habit to celebrate
even small successes. Don’t wait until
the end of the year to thank someone
for going above and beyond expectations.
Feedback is most valuable when
it is provided immediately or soon aft er
an accomplishment.
Encourage Creativity and
Innovation: Eff ective leaders know that
one of their most important jobs is to
develop their people. Invest in classes
that will encourage your team members
to strive for ongoing professional development.
Challenge your team members
to fi nd creative ways to solve problems
and actively encourage innovation. Find
ways to recognize and appreciate those
who step up to the challenge.
Employees want to work for managers
they can trust. Th ey want their managers
to be open to new ideas, show integrity
and be responsive to their needs.
If you invest the time to focus on your
employees, you will gain their respect
and be able to build a long-lasting trusting
relationship as their leader.
If you would like tips for the most
eff ective ways to communicate and lead
teams at work, please contact Mindy
directly at mstern@aimresourcegroup.
com . Mindy Stern, SPHR, SHRM-SCP,
ACC is a trusted HR advisor, career
coach, author, speaker and president of
AIM Resource Group Inc. Visit the website
at www.aimresourcegroup.com or
call 718-217-1074 to get RESULTS!
EMPLOYMENT
MATTERS
MINDY STERN
SPHR, SHRM-SCP,
/www.aimresourcegroup.com
