Volume 2, Issue 3
Table of Contents

Cover Story:
Taking Rockland’s Pulse
When it comes to healthcare, the prognosis is good for Rockland County

Feature Story:
Trends In Senior Living
From home health care to hospice care, assisted living to nursing homes, find out what's right for you

RBD Round-Up:
RBD's First Annual Small Business Awards
We’re looking for you! Find out more about our new awards program—and how to nominate a small business

DEPARTMENTS:

Economic Round-Up
• The Smart Investor
How should you manage your retirement?

Retail Round-Up
• The Most Wonderful Time of the Year
Retailers expect respectable sales as shoppers head into the holidays

Business Round-Up
• Things You Should Know
The County hires a new health commissioner, Wyeth celebrates the century mark
• Marketing By Design
The fine art of advertising
• Rockland Newsmakers

Ask The Expert
• Limited Liability and Company Retirement Plans

Dedicated Section:
Rockland Business Association:

The President’s Desk
It’s Been A Very Good Year...and It Ain’t Over Yet

Marking a Milestone
The Old 76 House in Tappan becomes the RBA’s 1,000th member.

RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members

Publishing Information
Rockland Business Digest, LLC

Co-Publishers:
Ken Mahoney & Steven Powell

For complete publishing information, please click here.

Q: Am I considered covered by an employer’s sponsored retirement plan for the year if I do not participate in the plan or if I did not work long enough to be vested?

A: The answer to this question depends on your type of retirement plan.

Generally, if your employer's plan has a separate account for each employee, it is a defined contribution plan. If any amount was contributed or allocated by you or your employer to your account, you are considered covered. It does not matter if you have worked long enough to be vested.

In the other type of plan, a defined benefit plan, the employer must make enough contributions (together with earnings) to provide the retirement benefit promised in the retirement plan. In this type of plan, if you meet the minimum age and years of service requirements to participate in your employer's plan, you are considered covered. It does not matter if you are vested.

The Form W-2 (PDF) you receive from your employer has a box used to indicate whether you were covered for the year. The "Pension Plan" box should have a mark in it if you were covered.

Q: For IRS purposes, how do I classify a limited liability company? Is it a sole proprietorship, partnership or a corporation?

A: A limited liability company (LLC) is an entity formed under state law by filing articles of organization. Unlike a partnership, none of the members of an LLC are personally liable for its debts. An LLC may be classified for Federal income tax purposes as if it were a sole proprietorship, a partnership or a corporation. If the LLC has only one owner, it will automatically be treated as if it were a sole proprietorship unless an election is made to be treated as a corporation. Two or more owners will automatically be considered to be a partnership unless an election is made to be treated as a corporation. If the LLC does not elect its classification, a default classification of partnership (multi-member LLC) or disregarded entity (taxed as if it were a sole proprietorship) will apply. The election referred to is made using the Form 8832 (PDF), Entity Classification Election. RBD

Bob Jackson is a CPA in Spring Valley; 111 South Main Street; Spring Valley; 425-7113;
email him at rmjcpa@verizon.net.