Jack Woods


Central Business Solutions 

301 Lynnfield Street, P.O. Box 3169 Peabody, MA 01960


Phone:  978-532-0266

Fax:      978-532-9105


1147 Main Street, Suite 213, P.O. Box 299 Tewksbury, MA 01876


Phone: 978-851-8044

Fax:     978-851-9332


Email: jack@cbps.com

May 2018

May 2018 Q & A

Article Image


With the new tax law and lower federal income tax rates, does it still pay to open a Roth IRA?


A Roth IRA requires no minimum distributions during your lifetime. The new tax laws also didn’t alter a Roth IRA’s tax-free qualified distributions and potential earnings. Another reason to consider this tax-free retirement savings vehicle is uncertainty. None of us can read a crystal ball, and today’s tax breaks could become tomorrow’s tax hikes. And remember that most of the new personal tax changes end after 2025, unless they are extended or made permanent.

I read that the new tax cut bill will allow more companies to choose between the cash and accrual methods of accounting. My business generates under $15 million annually. Which is better for me?

You and your tax professional should decide which method ultimately works best for you, but generally cash accounting is
simpler because you record income when received and expenses when paid. This can, however, make budgeting unpredictable. The accrual method of accounting records your income as you bill it and expenses as they occur, making budgeting a bit more predictable, but accounting a little more complicated. Only businesses generating $25 million or less get to choose between the two methods.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.