Odyssey Advisors

?? Celebrating 25 Years of Odyssey Advisors ?? Time to break out the confetti and reminisce with us! We can hardly believe it's been 25 years since Parker Elmore founded Odyssey Advisors. In honor of this momentous month, our team put together this video to celebrate the epic double milestone and share the immense gratitude we all have for this remarkable company and Parker. To our clients and the financial advisors, auditors, and accountants who have chosen to partner with us over the years, thank you. We're extremely lucky to have such an incredible network of supporters! Join us in raising a glass to the last 25 years of adventure, hard work, and incredible memories. Here's to many more exciting years ahead! #OdysseyAnniversary #25YearsStrong #ThankYou #WorkAnniversary #OPEB #RetirementPlanning Francis Fraine Kurtis Thompson ASA, MAAA Samantha Schneider Luke Matchett Caleb White Andrew Taggart, ASA, EA, ACA, MAAA Kirby Elmore Prigioni Stephanie Irvin, MBA

State and local governments are leading the way in job growth, with public sector hiring outpacing the private sector for the first time in decades. As wages rise and governments adopt new benefits to attract and retain talent, the sector faces opportunities and challenges ahead. Dive into this great analysis by our friend and fiscal policy journalist, Liz Farmer, at The Pew Charitable Trusts on the evolving landscape of public sector employment. #publicsector #jobgrowth #localgov #governmenthiring

Managing OPEB liabilities can feel overwhelming, but having a solid plan makes all the difference. Michael Herbert, Town Manager of Ashland, MA shares how they're tackling the challenge and it's a great read for any municipality looking for practical strategies. It's not easy, but as Ashland has shown, it's absolutely doable! #publicsector #OPEB #municipalfinance #localgov

?? ???????????? ???????????? ???? ???????? ?????????????? ???????? ???????????? Cash Balance and Defined Benefit pension plans offer small business owners excellent tax deferral and savings opportunities. However, IRS limits on contributions and benefits must be carefully followed. Ignoring these limits can result in costly consequences. ?? ????????-?????????? ?????????????? A husband-and-wife-owned S-Corp with a well-funded Cash Balance Plan. Both owners are in their mid-60s, and the wife was ready to retire and roll her funds into an IRA—so far, so good. However, Cash Balance Plans are designed to be "permanent" under IRS rules, meaning they should theoretically continue beyond the original participants (even if, in reality, no new employees will ever join). More importantly, IRS regulations limit the maximum deductible contribution to an amount that allows the plan to reach 150% of its funded target. Their actuary completed the valuation and noted that: No contribution was required, but they could deduct up to $850K in contributions for the year. Since tax deductions are always welcome, they decided to contribute the full $850K. ?????? ??????????????: They forgot about IRS Code 415(b). Unlike a 401(k), where you withdraw whatever balance you've accumulated, Cash Balance and Defined Benefit (DB) plans are subject to IRS Code Section 415(b), which limits the maximum benefits that can be paid out. At retirement, the maximum allowable benefit is the lesser of: $280,000 per year in pension payments, or The average of the highest three years of compensation. For this couple, the maximum lump sum payout was $5.5 million (since their S-Corp structure meant they kept W-2 wages low for tax purposes). However, before making that $850K deductible contribution, their plan balance was already $6.7 million—$1.2 million more than they could legally take. Now, with the extra contribution, there was an additional $850K sitting in the plan that they couldn't withdraw. ?????? ???????????? ??????????????????????: ?????????????????? ?????????? Since 1986, IRS rules impose a 50% reversion tax on excess DB plan assets that revert to the company. On top of that, federal, state, and local taxes apply, bringing the effective tax rate to around 85%. This means that not only was the original $1.2 million overfunded and subject to the reversion tax, but the additional $850K contribution also became taxable, essentially undoing the benefit of the deduction. ?????? ????????????????: ???????? ???? ???????? ?????????????? ?????????? If you have a Cash Balance or Defined Benefit Plan, always monitor your plan’s asset balance with IRS 415 limits. And if you’re considering major business changes—like retirement, selling your company, or restructuring—let your actuary know in advance. A little planning could save you a very expensive lesson.

The public sector is shifting, and with federal job transitions on the rise, state and local governments have a chance to bring in experienced talent. Civic Match, a program from Work for America, connects outgoing federal employees with over 300 state and local governments seeking to fill roles in infrastructure, finance, technology, and other areas. Here at Odyssey, we know how challenging municipal hiring can be. If your town, city, or agency is looking for skilled professionals, Civic Match could be a great resource. Note: Odyssey Advisors is not affiliated with Civic Match and does not receive any remuneration. We're simply sharing a potential resource for municipalities and job seekers. #localgov #civicmatch #governmentjobs

Join us in wishing a fantastic birthday to our very own Luke Matchett! ???? Your hard work and dedication make a big impact on our team and clients every day. Hope it's a great one, Luke!

Crunching numbers and hearts this Valentine's Day! ???? #valentinesday #actuaryhumor

Ever hire a family member for your business? You might be surprised how that impacts your retirement plan’s non-discrimination testing! In our latest Ask an Actuary episode, Andrew Taggart, ASA, EA, FCA, MAAA, a consulting actuary at Odyssey Advisors, breaks down: ? How family attribution can make someone an HCE (even if they don’t meet the usual criteria) ? Common situations where businesses get tripped up ? How to stay compliant and avoid unexpected contribution requirements Check out the link in the comments below to watch the full episode. And don’t forget to subscribe so you never miss another one! #RetirementPlans #AskAnActuary #FamilyAttribution #NonDiscriminationTesting

For all of our municipal peers in Massachusetts who offer OPEB (and why wouldn't you?), the question we often get is how are we doing in terms of prefunding vs our peers? Funny you should ask. We just released our OPEB Funding Ratio statistics as of 12/31/2024. We segregate the results for Town, City, School District & Utility District to give you a better comparison. As an example - if you're a Town with a 13.13% funded plan plan, you're in the 60th percentile (that means you're above 60% of your peers). If you have questions on it, feel free to reach out or you can contact your OPEB funding provider about your funding policy & asset allocation models. #OPEB #Municipal #GASB75

Keep the momentum going! It's not too late to crush your business resolutions this year. Here are a few ideas if you need some inspiration: ? Get savvy with AI ? Manage cash flow better ? Grow the dream team ? Max out those tax savings Now tell us: What's the most important resolution you're working on for your business this year? ??