November 2026
A Season for Thanks and Smart Financial Decisions
As Thanksgiving approaches, it’s the perfect time to reflect on what matters most and plan for what lies ahead. This month’s edition explores important tax updates, retirement planning considerations, new education tax credits, and practical strategies for managing business cash. Discover valuable insights to help you make informed financial decisions as the year comes to a close.
In This Issue:
- The pro-rata rule: the backdoor Roth IRA mistake that can create an unexpected tax bill
- A new federal tax credit could help fund K-12 scholarships starting in 2027
- How much cash should your business actually keep?
- New IRS per diem rates in effect as of October 1
The pro-rata rule: the backdoor Roth IRA mistake that can create an unexpected tax bill
The backdoor Roth IRA strategy can trigger an unexpected tax bill if you overlook the pro-rata rule, which requires the IRS to treat all of your traditional IRA balances together when calculating how much of a conversion is taxable. A separate account, a prior 401(k) rollover, or even a year-end IRA balance you didn’t have at the time of conversion can all affect the result. Before contributing or converting, review your full IRA picture to avoid a costly surprise at tax time.
A new federal tax credit could help fund K-12 scholarships starting in 2027
Starting in 2027, a new federal tax credit will allow eligible taxpayers to reduce their tax liability dollar for dollar by making cash contributions to qualifying Scholarship Granting Organizations that fund K-12 education. Unlike a charitable deduction, this credit directly offsets what you owe, with individual credits of up to $1,700 per year and up to $3,400 for married couples filing jointly. If you support education-focused giving, now is the time to understand how this new credit interact
How much cash should your business actually keep?
How much cash should your business keep on hand? The answer depends on more than a simple rule of thumb. This article breaks down a practical framework for separating your cash into layers, covering operating needs, committed funds, and contingency reserves, so you can make smarter decisions about liquidity, capital allocation, and when cash truly becomes excess.
New IRS per diem rates in effect as of October 1
The IRS has released its 2026-2027 special per diem rates for business travel, and the changes took effect October 1st. If your company reimburses employees for travel expenses, now is the time to update your rates, review your reimbursement policy, and ensure your expense systems reflect the latest IRS guidance before outdated rates create compliance problems. Read our latest article to learn what changed, what it means for your business, and what your finance team should do right now.
