Legislation signed by President Obama last month—The Small Business Jobs and Credit Act of 2010—offers a series of tax breaks and other provisions to prop up small firms.
One key HR provision: It allows participants in 401(k) and other defined contribution plans to roll over their account balances into tax-advantaged Roth 401(k) accounts provided under the employer’s plan. Such conversions previously were prohibited, and they could produce big tax savings for employees with large retirement accounts.
The law also provides a special one-year health insurance deduction for self-employed people and relaxes record-keeping requirements for business use of cell phones.
Read all the details of the bill at www.theHRSpecialist.com/smallbizlaw.