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Lakeside Announces Fiscal 2025 Second Quarter and Six-Month Results

Published

2 years ago

on

ITASCA, Ill. , Feb. 14, 2025 /PRNewswire/ — Lakeside Holding Limited (“Lakeside” or the “Company”) (Nasdaq: LSH), a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market operating through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd., today announced financial results for its fiscal 2025 second quarter and first half ended December 31, 2024.

Management Commentary

Henry Liu, Chairman and Chief Executive Officer of Lakeside commented, “While we faced industry-wide headwinds in the second quarter, we’ve made tremendous strategic progress in positioning Lakeside for long-term growth. Our expansion into pharmaceutical logistics through Hupan Pharmaceutical, our new partnerships with major e-commerce platforms, and our significantly-expanded Dallas-Fort Worth facilities demonstrate our commitment to diversifying and strengthening our business. The strong growth in our Asia-based customer revenues, up 29.4% in the first half, validates our strategic shift toward serving the rapidly expanding cross-border e-commerce market. With these foundational pieces in place and our continued investment in operational capabilities, we’re excited about the opportunities ahead as we build a more robust, diversified logistics enterprise.”

Operational Highlights

E-Commerce & Cross-Border Logistics:

Entered one-year agreement with a major Asian e-commerce platformPartnered with a leading global social media and e-commerce platform for customs brokerage servicesLaunched new Pick & Pack Fulfillment service for a major Chinese logistics partner

U.S. Facilities Expansion:

Expanded Dallas-Fort Worth operations:More than doubled warehouse space from 20,000 to 46,657 square feetAdded staff to support expanded operationsPart of multi-hub strategy including Chicago O’Hare (ORD), Dallas-Fort Worth (DFW), and Los Angeles (LAX)

Medical/Pharmaceutical Business Development:

Acquired Hupan Pharmaceutical (Hubei) Co., Ltd:Purchase price: RMB 4.0M ($0.6M)Expected annual revenue contribution: $7MGained licenses for drug wholesale, retail, and medical device distributionPartnerships with 15 major Wuhan hospitalsEstablished partnership with Sinopharm Group Hubei Co., Ltd. for:Essential medicine storageTransportation servicesLogistics servicesSigned RMB 11.0M ($1.5M) sales agreement with Sinopharm Holding Hubei New Special Medicine Co., Ltd:One-year contract effective January 1, 2025Covers critical medicines including Sodium Bicarbonate, Glucose, and Glucose Sodium Chloride

Financial Results for the Three Months Ending December 31, 2024:

Total revenues decreased by $1.5 million, or 31.3% to $3.4 million for the three months ended December 31, 2024, compared with $4.9 million for the three months ended December 31, 2023. The decrease was primarily driven by a significant decline in volume we handled from our cross-border airfreight solutions.

Revenues from our cross-border airfreight solutions decreased by $1.1 million or 35.5%, from $3.1 million in the three months ended December 31, 2023, to $2.0 million in the three months ended December 31, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 8,217 tons for the three months ended December 31, 2023, to approximately 4,459 tons for the three months ended December 31, 2024.

Revenues from our cross-border ocean freight solutions decreased by $0.4 million, or 24.2%, from $1.8 million in the three months ended December 31, 2023, to $1.4 million in the three months ended December 31, 2024. This reduction was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded, dropping from 1,330 TEU in the three months ended December 31, 2023, to 1,046 TEU in the three months ended December 31, 2024.

For the three months ended December 31, 2024, our total revenue from pharmaceutical product distribution amounted to $0.2 million, compared to no revenue from this segment in the same period of the prior year. Starting from December 2024, we established a new revenue stream through the distribution of pharmaceutical products. We procured pharmaceuticals—primarily pharmaceutical solutions—directly from manufacturers and supplied them to distributors, hospitals, and clinics.

Revenues by Customer Geographic

For the three months ended December 31,

2024

2023

Revenues

Amount

% of
total
Revenues

Amount

% of
total
Revenues

Amount
Increase
(Decrease)

Percentage
Increase
(Decrease)

Revenue from cross-border freight solutions

Asia-based customers

$

2,750,202

76.5

%

$

2,602,745

52.9

%

$

147,457

5.7

%

U.S.-based customers

627,301

17.4

%

2,313,358

47.1

%

(1,686,057)

(72.9)

%

3,377,503

93.9

%

4,916,103

100.0

%

(1,538,600)

(31.3)

%

Revenue from distribution of pharmaceuticals

Asia-based customers

218,086

6.1

%

–

–

218,086

N/A

Total revenues

$

3,595,587

100.0

%

$

4,916,103

100.0

%

$

(1,320,514)

(26.9)

%

 

Revenues from Asia-based customers increased by $0.1 million, or 5.7%, from $2.6 million in the three months ended December 31, 2023, to $2.8 million in the three months ended December 31, 2024. The increase in revenues from Asia-based customers was driven by a surge in volume from these customers, particularly those serving large e-commerce platforms. This growth reflects the rising demand for our services, a direct result of the overall expansion of the U.S. e-commerce market.

Revenues from U.S.-based customers decreased by $1.7 million, or 72.9%, from $2.3 million in the three months ended December 31, 2023 to $0.6 million in the same period in 2024. The decrease in revenue from the U.S.-based customers in the three months ended December 31, 2024, compared to the same period in 2023, was primarily due to our strategic shift toward Asia-based e-commerce customers.

Total cost of revenues decreased by $0.2 million, or 5.6%, from $3.9 million in the three months ended December 31, 2023, to $3.6 million in the three months ended December 31, 2024.

Our overall gross loss was $42,231 in the three months ended December 31, 2024, compared to gross profit of $1,064,509 in same period last year . Our gross margin was mainly impacted by higher cost of revenue, particular in fixed overhead costs, and an industry-wide decline in revenue.

Our gross margin of distribution of pharmaceuticals was 44.2% for the three months ended December 31, 2024.

General and administrative expenses increased by $0.9 million, or 94.1%, from $1.0 million in the three months ended December 31, 2023, to $1.9 million in the three months ended December 31, 2024. These expenses represented 53.2% and 20.0% of our total revenues for the three months ended December 31, 2024 and 2023, respectively. The increase was primarily attributed to higher salary and employee benefit expenses and professional fees operating as a listed company.

Net loss was $1.9 million for the three months ended December 31, 2024, compared to a net income of $0.06 million for the three months ended December 31, 2023.

Financial Results for the Six Months Ending December 31, 2024:

Total revenues decreased by $1.6 million, or 17.7%, from $9.1 million for the six months ended December 31, 2023, to $7.5 million for the six months ended December 31, 2024. The decrease was primarily driven by a significant decline in volume we handled from our cross-border airfreight solutions.

Revenues from our cross-border airfreight solutions decreased by $1.3 million or 23.4%, from $5.5 million in the six months ended December 31, 2023, to $4.2 million in the six months ended December 31, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 16,034 tons for the six months ended December 31, 2023, to approximately 11,732 tons for the six months ended December 31, 2024.

Revenues from our cross-border ocean freight solutions decreased by $0.3 million, or 8.7%, from $3.5 million in the six months ended December 31, 2023, to $3.2 million in the six months ended December 31, 2024. This growth was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded, dropping from 2,620 TEU in the six months ended December 31, 2023, to 2,476 TEU in the six months ended December 31, 2024.

Revenues by Customer Geographic

For the six months ended December 31,

2024

2023

Revenues

Amount

% of
total
Revenues

Amount

% of
total
Revenues

Amount
Increase
(Decrease)

Percentage
Increase
(Decrease)

Revenue from cross-border freight solutions

Asia-based customers

$

5,559,837

72.4

%

$

4,296,968

47.4

%

$

1,262,869

29.4

%

U.S.-based customers

1,899,220

24.7

%

4,767,611

52.6

%

(2,868,391)

(60.2)

%

7,459,057

97.2

%

9,064,579

100.0

%

(1,605,522)

(17.7)

%

Revenue from distribution of pharmaceuticals

Asia-based customers

218,086

2.8

%

–

–

218,086

N/A

Total revenues

$

7,677,143

100.0

%

$

9,064,579

100.0

%

$

(1,387,436)

(15.3)

%

 

Revenues from Asia-based customers increased by $1.3 million, or 29.4%, from $4.3 million in the six months ended December 31, 2023, to $5.6 million in the six months ended December 31, 2024. The increase in revenues from Asia-based customers was driven by an increase in volume from these customers, particularly those serving large e-commerce platforms. This growth reflects the rising demand for our services, a direct result of the overall expansion of the U.S. e-commerce market.

Revenues from cross-border freight solutions for the U.S.-based customers decreased by $2.9 million, or 60.2%, from $4.8 million in the six months ended December 31, 2023 to $1.9 million in the same period in 2024. The decrease in revenue from the U.S.-based customers in the three months ended December 31, 2024, compared to the same period in 2023, was primarily due to our strategic shift toward Asia-based e-commerce customers.

Cost of revenues decreased by $0.2 million, or 2.1%, from $7.4 million in the six months ended December 31, 2023, to $7.2 million in the six months ended December 31, 2024.

Gross profit decreased by $1.2 million, or 71.9%, from $1.7 million in the six months ended December 31, 2023, to $0.5 million in the six months ended December 31, 2024. Our gross margin of cross-border freight solution was 5.1% for the six months ended December 31, 2024, compared to 18.9% for the six months ended December 31, 2023. The decline in gross margin was primarily attributable to reduced revenue from cross-border airfreight solutions and an increase in our cost of revenue in warehouse services, custom declaration and terminal charges, freights arranged charges and overhead costs allocated.

General and administrative expenses increased by $1.9 million, or 103.7%, from $1.8 million in the six months ended December 31, 2023, to $3.7 million in the six months ended December 31, 2024. These expenses represented 48.8% and 20.3% of our total revenues for the six months ended December 31, 2024 and 2023, respectively. The increase was primarily attributed to higher salary and employee benefit expenses, professional fees, office expenses and traveling, insurance expenses and entertainment expenses, operating as a listed company.

Net loss was $3.3 million for the six months ended December 31, 2024, compared to a net loss of $0.2 million for the six months ended December 31, 2023.

Conference Call & Audio Webcast

Lakeside’s management team will hold an earnings conference call at 4:30 PM Eastern Time (3:30 PM Central Time) on Tuesday, February 17 to discuss the Company’s financial results and provide an overview of the Company’s operations. Management will lead the conference call and be available to answer questions.

To access the call by phone, please dial 1- 877-407-9716 (international callers, please dial 1- 201-493-6779) approximately 10 minutes before the start of the call. Refer to conference ID: LAKESIDE. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY

A live audio conference call webcast will be available online at
https://viavid.webcasts.com/starthere.jsp?ei=1708554&tp_key=b4f1b10725

About Lakeside Holding Limited

Lakeside Holding Limited is a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market. Through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd.—Lakeside delivers tailored logistics solutions spanning general and specialized sectors.

American Bear Logistics, with strategic hubs in Chicago, Dallas, Los Angeles, and New York, offers customized cross-border ocean and airfreight solutions, connecting Asia-based logistics service companies and e-commerce platforms with the U.S. market.

Lakeside recently acquired Hupan Pharmaceutical (Hubei) Co., Ltd., expanding its service scope and enhancing its pharmaceutical logistics and distribution capabilities within China. This strategic move underscores Lakeside’s commitment to advancing integrated cross-border logistics solutions.

For more information, please visit https://lakeside-holding.com.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Investor Relations Contact:

Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

 

(tables follow)

 

LAKESIDE HOLDING LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

As of
December 31,
2024

(unaudited)

As of
June 30,
2024

(audited)

ASSETS

CURRENT ASSETS

Cash

$

1,123,414

$

123,550

Accounts receivable – third parties, net

1,645,774

2,082,152

Accounts receivable – related party, net

207,293

763,285

Prepayment and other receivable

49,476

—

Contract assets

31,388

129,506

Inventory, net

10,328

—

Due from related parties

682,980

441,279

Loan to a third party

686,697

—

Total current assets

4,437,350

3,539,772

NON-CURRENT ASSETS

Investment in other entity

15,741

15,741

Property and equipment at cost, net of accumulated depreciation

514,073

344,883

Intangible asset, net

418,867

—

Right of use operating lease assets

4,074,617

3,471,172

Right of use financing lease assets

110,998

37,476

Deferred tax asset

—

89,581

Deferred offering costs

—

1,492,798

Deposit and prepayment

265,480

202,336

Total non-current assets

5,399,776

5,653,987

TOTAL ASSETS

$

9,837,126

$

9,193,759

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payables – third parties

$

1,233,142

$

1,161,858

Accounts payables – related parties

71,557

227,722

Accrued liabilities and other payables

1,244,501

1,335,804

Current portion of obligations under operating leases                                                                   

2,203,766

1,186,809

Current portion of obligations under financing leases

48,865

37,619

Loans payable, current

609,935

746,962

Dividend payable

—

98,850

Tax payable

79,825

79,825

Due to shareholders

—

1,018,281

Total current liabilities

5,491,591

5,893,730

NON-CURRENT LIABILITIES

Loans payable, non-current

174,846

136,375

Deferred tax liabilities

104,717

—

Obligations under operating leases, non-current

2,339,439

2,506,402

Obligations under financing leases, non-current

80,252

17,460

Total non-current liabilities

2,699,254

2,660,237

TOTAL LIABILITIES

$

8,190,845

$

8,553,967

Commitments and Contingencies

EQUITY

Common stocks, $0.0001 par value, 200,000,000 shares authorized,
7,500,000 and 6,000,000 issued and outstanding as of December 31,
2024 and June 30, 2024, respectively

750

600

Subscription receivable

—

(600)

Additional paid-in capital

4,942,791

642,639

Accumulated other comprehensive income

(9,214)

2,972

Deficits

(3,288,046)

(5,819)

Total equity

1,646,281

639,792

TOTAL LIABILITIES AND EQUITY

$

9,837,126

$

9,193,759

 

 

LAKESIDE HOLDING LIMITED

CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

Six Months Ended
December 31,

Three Months Ended
December 31,

2024

2023

2024

2023

Revenue from cross-border freight
solutions – third party

$

6,702,063

$

8,639,983

$

3,102,276

$

4,585,696

Revenue from cross-border freight
solutions – related parties

756,994

424,596

275,227

330,407

Revenue from distribution of pharmaceutical
products – third parties

218,086

—

218,086

—

Total revenue

7,677,143

9,064,579

3,595,589

4,916,103

Cost of revenue from cross-border
freight solutions – third party

6,153,994

6,329,650

3,159,709

3,424,053

Cost of revenue from cross-border
freight solutions – related party

921,050

1,022,877

356,320

427,541

Cost of revenue from pharmaceutical
products – related parties

121,791

—

121,791

—

Total cost of revenue

7,196,835

7,352,527

3,637,820

3,851,594

Gross profit (loss)

480,308

1,712,052

(42,231)

1,064,509

Operating expenses:

Selling expenses

54,488

—

54,488

—

General and administrative expenses

3,749,059

1,840,831

1,911,853

985,053

Loss from deconsolidation of a subsidiary

—

73,151

—

—

Provision (reversal) of allowance for expected
credit loss

1,956

49,591

(10,881)

(2,531)

Total operating expenses

3,805,503

1,963,573

1,955,460

982,522

Income (loss) from operations

(3,325,195)

(251,521)

(1,997,691)

81,987

Other income

Other income, net

201,541

88,449

91,753

41,500

Interest expense

(68,992)

(53,864)

(40,882)

(31,079)

Total other income

132,549

34,585

50,871

10,421

(Loss) income before income taxes

(3,192,646)

(216,936)

(1,946,820)

92,408

Income tax expense (credit)

89,581

26,125

—

28,184

Net (loss) income

(3,282,227)

(243,061)

(1,946,820)

64,224

Less: net loss attributable to non-controlling interest

—

(3,025)

—

—

Net (loss) income attributable to the Company

(3,282,227)

(240,036)

(1,946,820)

64,224

Other comprehensive (loss) income:

Foreign currency translation income

(12,186)

3,122

(25,179)

—

Comprehensive (loss) income

(3,294,413)

(239,939)

(1,971,999)

64,224

Less: comprehensive loss attributable to
non-controlling interest

—

(3,119)

—

—

Comprehensive (loss) income attributable
to the Company

$

(3,294,413)

$

(236,820)

$

(1,971,999)

$

64,224

(Loss) earnings per share – basic and diluted

$

(0.44)

$

(0.04)

$

(0.26)

$

0.01

Weighted Average Shares Outstanding –
basic and diluted

7,500,000

6,000,000

7,500,000

6,000,000

 

LAKESIDE HOLDING LIMITED

CONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the Six Months Ended
December 31,

2024

2023

Cash flows from operating activities:

Net loss

$

(3,282,227)

$

(243,061)

Adjustments to reconcile net loss to net cash provided by
operating activities:

Depreciation – G&A

50,804

35,991

Depreciation – cost of revenue

36,328

36,328

Amortization and interest expense of operating lease assets                                                          

989,003

439,142

Depreciation of right-of-use finance assets

15,480

14,385

Provision of allowance for expected credit loss

1,956

49,591

Deferred tax expense

89,581

26,125

Loss from derecognition of shares in subsidiary

—

73,151

Changes in operating assets and liabilities:

Accounts receivable – third parties

424,648

(479,056)

Accounts receivable – related parties

565,766

(192,609)

Contract assets

98,118

(27,169)

Inventories, net

(10,328)

—

Due from related parties

(241,702)

40,740

Prepayment, other deposit

(112,620)

(23,269)

Accounts payables – third parties

28,285

539,542

Accounts payables – related parties

(156,165)

241,721

Accrued expense and other payables

312,722

122,547

Operating lease liabilities

(742,649)

(396,263)

Net cash (used in) provided by operating activities

(1,933,000)

257,836

Cash flows from investing activities:

Purchase of furniture and equipment

(36,072)

—

Payment for leasehold improvement

(75,008)

—

Net cash payment for asset acquisition

(552,721)

—

Loan to a third party

(686,697)

—

Payment made for investment in other entity

—

(29,906)

Net cash outflow from deconsolidation of a subsidiary
(Appendix A)

—

(48,893)

Net cash used in investing activities

(1,350,498)

(78,799)

Cash flows from financing activities:

Proceeds from loans

195,000

225,000

Repayment of loans

(339,914)

(185,856)

Repayment of equipment and vehicle loans

(55,877)

(59,708)

Principal payment of finance lease liabilities

(14,964)

(13,429)

Payment for deferring offering cost

—

(140,000)

Advances from Hupan Pharmaceutical prior to acquisition

276,365

—

Proceeds from initial public offering, net of share issuance
costs

5,351,281

—

Advanced to related parties

(311,185)

—

Proceeds from shareholders

—

158,455

Repayment to shareholders

(805,345)

—

Net cash provided by (used in) financing activities

4,295,361

(15,538)

Effect of exchange rate changes on cash

(11,999)

3,216

Net increase in cash

999,864

166,715

Cash, beginning of the period

123,550

174,018

Cash, end of the period

$

1,123,414

$

340,733

SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:

Cash paid for income tax

$

—

$

—

Cash paid for interest

$

45,953

$

15,503

SUPPLEMENTAL SCHEDULE OF NON-CASH IN
INVESTING AND FINANCING ACTIVITIES

Deferred offering costs within due to shareholders

$

—

$

500,826

Deferred offering costs within accrued expense and other
payables

$

—

$

241,176

Additions to property and equipment included in loan
payable

$

102,235

—

Additions to leasehold improvement and furniture and
fixture through account payable

$

42,803

$

—

Settlement of due to shareholder and advance to related
party

$

311,815

—

NON-CASH ACTIVITIES

Right of use assets obtained in exchange for operating lease
obligations

$

1,445,498

$

—

Right of use assets obtained in exchange for finance lease
obligation

$

89,003

$

19,982

APPENDIX A – Net cash outflow from deconsolidation of
a subsidiary

Working capital, net

$

29,812

Investment in other entity recognized

(15,741)

Elimination of NCl at deconsolidation of a subsidiary

10,187

Loss from deconsolidation of a subsidiary

(73,151)

Cash

$

(48,893)

 

View original content:https://www.prnewswire.com/news-releases/lakeside-announces-fiscal-2025-second-quarter-and-six-month-results-302377335.html

SOURCE Lakeside Holding Limited

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The HelloNation article explains that active knob-and-tube wiring may complicate insurance coverage or a home sale. Requirements vary, with some insurers seeking an inspection or replacement.

The article describes replacement as installing modern grounded cable throughout affected areas. Accessibility, layout, and wall materials influence the work, and some homeowners complete rewiring in stages.

Until replacement, the article advises avoiding overloaded circuits, keeping visible wiring clear of insulation and storage, and leaving repairs to qualified professionals.

What Is Knob-and-Tube Wiring and Is It Safe Today? features insights from Thomas Reilly, Expert Electrical Contractor of Amherst, New Hampshire, in HelloNation.

FREQUENTLY ASKED QUESTIONS

Does Older Wiring Always Present an Immediate Danger?

According to Thomas Reilly, Expert Electrical Contractor of Amherst, New Hampshire, undisturbed wiring in good condition may continue working when not overloaded. Its condition still warrants professional evaluation.

Can Insulation Cover Active Wires?

Thomas Reilly, Expert Electrical Contractor of Amherst, New Hampshire, explains in the article that surrounding insulation can prevent heat from escaping. The system was designed to operate with open air around its wires.

Does Rewiring Require Opening Every Wall?

Based on insights from Thomas Reilly, Expert Electrical Contractor of Amherst, New Hampshire, electricians can often fish new cables through walls. The extent of access needed depends on the home’s construction and layout.

About HelloNation

HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/expert-electrical-contractor-thomas-reilly-explains-knob-and-tube-wiring-risks-in-hellonation-302925341.html

SOURCE HelloNation

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Retirement Planning Expert Janie Kelly Explains Required Minimum Distribution Rules in HelloNation

Published

23 minutes ago

on

November 1, 2026

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The article outlines retirement account withdrawal deadlines, calculation methods, and tax considerations that can affect retirement income planning.

KEY HIGHLIGHTS

Required withdrawals depend on account type, age, prior year-end balances, and IRS life expectancy tables.Delaying a first withdrawal until the following April can mean taking two distributions in one calendar year.IRA and employer plan rules differ, making account-specific calculations and deadlines important.

ROCHESTER HILLS, Mich., Nov. 1, 2026 /PRNewswire/ — How does a required minimum distribution work for IRAs and 401(k) plans? HelloNation has published a HelloNation article that provides the answer through insights from Janie Kelly, Retirement Planning Expert of Rochester Hills, Michigan, explaining how withdrawal requirements affect retirement income and taxes.

Which Retirement Accounts Require Withdrawals?

The HelloNation article explains that required minimum distributions, commonly called RMDs, apply to traditional IRAs and many employer retirement plans. These withdrawals ensure that tax-deferred savings eventually become subject to income tax.

The article distinguishes these accounts from Roth accounts, which generally do not require lifetime withdrawals by their original owners. Inherited retirement accounts follow separate rules and may involve both annual withdrawals and a deadline for emptying the account.

How Are Withdrawal Amounts and Deadlines Determined?

The article explains that a required minimum distribution generally uses the account’s prior December 31 balance divided by an IRS life expectancy factor. Different tables may apply depending on the owner’s circumstances.

The first withdrawal generally has an April 1 deadline in the year after the applicable starting age. Later annual withdrawals generally must occur by December 31.

The article cautions that waiting until April for the first withdrawal can create two taxable distributions in one year. That timing may affect the retiree’s tax bracket.

Can Withdrawals Be Combined Across Accounts?

The HelloNation article explains that each traditional IRA requires a separate calculation. The combined amount can generally come from one IRA or several IRAs.

Most 401(k) plans require withdrawals from each individual account. The article also describes a possible delay for eligible employees still working under their current employer’s plan, while noting that this exception does not apply to IRAs.

Missing a withdrawal can trigger an IRS penalty. The article emphasizes tracking deadlines, reviewing account requirements, and planning distributions before year-end.

How Required Minimum Distributions Work for IRAs and 401(k) Plans features insights from Janie Kelly, Retirement Planning Expert of Rochester Hills, Michigan, in HelloNation.

FREQUENTLY ASKED QUESTIONS

Can Required Withdrawals Affect Other Retirement Costs?

According to Janie Kelly, Retirement Planning Expert of Rochester Hills, Michigan, taxable withdrawals may affect income tax brackets, taxation of Social Security benefits, and Medicare premiums for higher-income retirees.

Can Charitable Giving Count Toward an RMD?

Janie Kelly, Retirement Planning Expert of Rochester Hills, Michigan, explains in the article that eligible IRA owners can use qualified charitable distributions toward their RMD. These transfers must go directly to qualified charities and follow applicable limits.

Must Retirees Take Their Entire Withdrawal at Once?

Based on insights from Janie Kelly, Retirement Planning Expert of Rochester Hills, Michigan, withdrawals can be spread across monthly or quarterly payments. Some retirees arrange automatic distributions through their account provider.

About HelloNation

HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/retirement-planning-expert-janie-kelly-explains-required-minimum-distribution-rules-in-hellonation-302925346.html

SOURCE HelloNation

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Accounting Expert David Riggs Explains S Corp Reasonable Salary and Distributions in HelloNation

Published

24 minutes ago

on

November 1, 2026

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The article explains how owner compensation affects payroll taxes and why salary decisions need supporting records.

KEY HIGHLIGHTS

Working S corporation owners must receive reasonable compensation before taking shareholder distributions.Duties, experience, hours worked, and comparable wages help determine an appropriate salary.The IRS may reclassify distributions as wages, resulting in back payroll taxes, interest, and penalties.

YORK, Pa., Nov. 1, 2026 /PRNewswire/ — How much salary should an S corporation owner pay themselves? HelloNation has published a HelloNation article that provides the answer through insights from David Riggs, Accounting Expert of York, Pennsylvania, explaining how salary and shareholder distributions affect payroll taxes.

Why Do Salary and Distributions Receive Different Tax Treatment?

The HelloNation article explains that working S corporation owners serve as both shareholders and employees. Their compensation can include wages paid through payroll and shareholder distributions.

Salary is subject to payroll taxes, including Social Security and Medicare. Shareholder distributions generally are not subject to those taxes, creating potential savings alongside compensation requirements.

The article notes that owners cannot simply replace reasonable wages with distributions. Working owners must receive compensation that reflects the services they provide.

How Is an S Corp Reasonable Salary Determined?

The article explains that no single dollar amount applies to every owner. An s corp reasonable salary depends on the work performed and what comparable businesses would pay for similar services.

Relevant factors include training, experience, responsibilities, and time devoted to the business. The article also describes how business size, complexity, revenue, and profits can influence compensation decisions.

Owners may handle management, sales, technical work, and bookkeeping. The article outlines approaches that compare market wages or assign compensation to each role.

Why Do Documentation and Annual Reviews Matter?

The HelloNation article cautions that percentage splits, such as 60 percent salary and 40 percent distributions, are not official IRS guidelines. Compensation decisions should reflect business facts rather than a fixed formula.

The article recommends keeping salary research, job descriptions, and records of hours worked. Reviewing compensation annually helps owners account for changing responsibilities and business growth.

Salary should also run through formal payroll, with required withholding, filings, and a year-end W-2. These practices help support the distinction between employee wages and shareholder distributions.

How the IRS Views S Corp Owner Salary and Shareholder Distributions features insights from David Riggs, Accounting Expert of York, Pennsylvania, in HelloNation.

FREQUENTLY ASKED QUESTIONS

Does the IRS Approve a Standard Salary Percentage?

According to David Riggs, Accounting Expert of York, Pennsylvania, no fixed percentage replaces a review of the owner’s actual work. Comparable pay and documented responsibilities provide a stronger basis.

What Happens When an Owner Takes Too Little Salary?

David Riggs, Accounting Expert of York, Pennsylvania, explains that the IRS may reclassify distributions as wages. Owners can then face back payroll taxes, interest, and penalties.

Can a New Business Justify a Lower Salary?

Based on insights from David Riggs, Accounting Expert of York, Pennsylvania, limited profit or cash may support lower compensation. The article emphasizes scrutiny when significant distributions accompany little salary.

About HelloNation

HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/accounting-expert-david-riggs-explains-s-corp-reasonable-salary-and-distributions-in-hellonation-302925330.html

SOURCE HelloNation

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