Topic: partner

Disability Is Far More Complex Than Death

The willingness to return to work may outstrip ability; then what? By Marc Rosenberg Retirements & Buyouts You’ve probably heard the saying “Disability is worse than death.” The point is that both death and disability are horrendous, catastrophic events. MORE ON BUYOUTS: Even Partner Agreements Must Face Death | 6 Ways to Leave a CPA Firm (Retirement’s Just 1) | How to Juggle Tax Considerations for Partner Retirement Benefits | Two Ways to Retire, and One’s Not Pretty | Mandatory Retirement Varies by Firm Size | Mandatory Retirement? 4 Reasons The Firm Comes First | How to Transition Clients from Retiring Partners | You Want Goodwill Payments? Give Proper Retirement Notice | Retirement Plan Funding? What Funding? | Retirement Vesting: The […]

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Even Partner Agreements Must Face Death

5 life insurance questions you should consider. By Marc Rosenberg Retirements & Buyouts Issues related to the death of a partner should be addressed in the firm’s partner agreement. Consider the following: Does the firm wish to accelerate vesting in any manner? Does the firm wish to accelerate the payment frequency, vesting or both? Partners are often tempted to be generous out of sympathy for the deceased partner’s family. What stops them from acting on this generosity impulse is the cold reality of how expensive this is. As a result, most firms treat death the same as an ordinary retirement. What must be done to assign the deceased partner’s clients to other firm members and to retain the clients? To […]

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6 Ways to Leave a CPA Firm (Retirement’s Just 1)

Goodwill depends on the method of departure. By Marc Rosenberg Retirements & Buyouts In the literal sense, retirement is only one of six ways that partners may separate from their firm. MORE ON RETIREMENT: How to Juggle Tax Considerations for Partner Retirement Benefits | How to Transition Clients from Retiring Partners | You Want Goodwill Payments? Give Proper Retirement Notice | Retirement Vesting: The Devil’s In the Details | Compromise Is In Order for Some Goodwill Payouts | Three Ways to Calculate Goodwill Payable in Partner Buyouts, None of Them Great | 5 Points to Consider When Paying Out Goodwill | How to Set Terms and Limits for Goodwill Payouts | 4 Ways to Decide How to Pay Out Capital | […]

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How to Juggle Tax Considerations for Partner Retirement Benefits

Minimizing self-employment taxes is desirable but tricky. By Marc Rosenberg Retirements & Buyouts The income tax aspect of practice management issues is an area of my consulting practice in which I have knowledge, but I wouldn’t call it “expertise.” So I sought the counsel of an expert – Jeff Arnol, CPA, Managing Partner of Kessler, Orlean, Silver & Company in Chicago. The information presented here is based on my 20+ years of experience of working with CPA firms on partner retirement plans, liberally supplemented by Arnol’s input. MORE ON PARTNER RETIREMENTS: Two Ways to Retire, and One’s Not Pretty | Mandatory Retirement Varies by Firm Size | Mandatory Retirement? 4 Reasons The Firm Comes First | How to Transition Clients from […]

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Two Ways to Retire, and One’s Not Pretty

The graceful way to slow down and phase out. By Marc Rosenberg Retirements & Buyouts There are two ways that partners slow down as they approach traditional retirement age: Announced – the “cooperative” way to slow down. The partner openly and willingly informs the partners that she wishes to slow down. This change in status is usually related to the retirement process, but some partners who are not retirement-minded may wish to work less than full time in order to pursue other life goals. MORE ON RETIREMENT: Mandatory Retirement Varies by Firm Size | How to Transition Clients from Retiring Partners | Retirement Plan Funding? What Funding? | Retirement Vesting: The Devil’s In the Details | When Retiring Partners Take a […]

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Mandatory Retirement Varies by Firm Size

Practices between “large” firms and smaller firms diverge. By Marc Rosenberg Retirements & Buyouts As is the case with many aspects of practice management, mandatory retirement is addressed quite differently depending on the size of the firm. Here is data from a recent Rosenberg MAP Survey: Percent of firms having mandatory retirement policies for partners: 83 percent for firms with annual fees greater than $20 million. 77 percent for firms in the $10 million-20 million range. 56 percent for firms in the $2 million-10 million range. 21 percent for firms with fees less than $2 million. MORE ON RETIREMENT: Mandatory Retirement? 4 Reasons The Firm Comes First | How to Transition Clients from Retiring Partners | You Want Goodwill Payments? Give Proper Retirement […]

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Mandatory Retirement? 4 Reasons The Firm Comes First

And 6 reasons that firms struggle. By Marc Rosenberg Retirements & Buyouts At CPA firms, the concept of requiring partners to retire at a certain age has been around for decades. The mandatory requirement policy has its roots in the “one-firm” concept of managing a firm: The interests of the firm should always be more important than the interests of any individual partner. MORE ON RETIREMENT: You Want Goodwill Payments? Give Proper Retirement Notice | Retirement Plan Funding? What Funding? | Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits? | The Multiple of Compensation Method, Fully Explained | The Ins and Outs of […]

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Teamwork: Room for Improvement

You may believe you have a great team in place. But does your team agree? A new set of CPA Trendlines Research findings shows room for improvement.

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You Want Goodwill Payments? Give Proper Retirement Notice

No transition – no goodwill. By Marc Rosenberg Retirements & Buyouts If there is one takeaway in retirement planning, it would be this: “No transition – no goodwill.” Here’s what I mean. MORE ON RETIREMENT: Retirement Plan Funding? What Funding? | Vesting Can Cover Part-Timers, Too | Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits? | Three Ways to Calculate Goodwill Payable in Partner Buyouts, None of Them Great | Eat What You Kill? Then Maybe ‘Book of Business’ Is for You | The Ins and Outs of AAV for Goodwill | 5 Points to Consider When Paying Out Goodwill | Clients […]

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