...With tax season approaching, I wanted to share information about a tax-advantaged retirement account that everyone receiving taxable compensation in 2014 can fund. You have until April 15 to make an Individual Retirement Account (IRA) contribution of up to $5,500 1 for the 2014 tax year. Accounts and Eligibility There are two types of IRAs -- Traditional and Roth. You can make a full Roth IRA (post-tax) contribution if your individual* 2014 Modified Adjusted Gross Income (MAGI) 2 is less than $114,000 -- or a partial contribution if it’s between $114,000 and $129,000. *Married filing jointly: 2014 Roth income limit threshold is between $181,000 and $191,000 2014 Traditional income limit threshold is between $96,000 and $116,000 Contribution limit of $11,000 (two individual IRAs of $5,500 apiece) MAGI figures provided below are based on an individual tax filer You can make a full Traditional IRA (pre-tax) contribution if your modified AGI is less than $60,000 -- or a partial pre-tax contribution if it's between $60,000 and $70,000. Roth IRA The appeal of the Roth IRA is the ability to invest after-tax money so that it grows tax-free over time, and then you use that money in retirement. Besides compounding tax-free, all withdrawals are tax-free, unlike a Traditional IRA or standard 401(k) account. You also have the option to withdraw your initial contributions at any time without penalty, not that it's advisable to, but having that flexibility makes...
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...Professor Emanovsky Econ 2015 Should Tax Laws be Reformed to Encourage Savings? What defines a nation’s way of life and standard for living depends entirely on its ability to function economically. In addition, the rate at which a country saves is the key to determining its prosperity from a long term perspective. More businesses with more facilities and more equipment equal a greater degree of productivity and greater income for employees. This formula transfers to show greater income for consumers and proves clear relationships between national saving rates and terms in which we measure economic well-being. In addition to the large scale national example, there is also an obvious connection between increased savings and families who are able to overcome financial obstacles and decrease overhead. For the average consumer, financial security means little to no debt, increased credit, increased education, home ownership and retirement options. In a perfect world, people would benefit directly and completely from their hard work and efforts to better themselves and their lifestyles. Nearly every American, and non-American for that matter, believes that if they work hard enough and save enough money, they will have opportunities to move upwards on the social economic ladder. The potential for a better future is the primary reason for most Americans to even attempt to save money in the first place. Unfortunately, current policies that support the achievement of such goals are...
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...Pensions ACCT 302 Pensions help us live with an income as we get older and have retired. “A pension plan is a financial arrangement that allows individuals to continue receiving some type of regular income even after they are no longer active in the workforce.” (1) Most of the pension options out there are used when you retire however there are certain instances where you can collect a pension before retirement due to a disability. Pension plans are also interchangeable with retirement plans they are basically the same thing. Pensions are based on years of service and what has been put into them both by the employee and the employer over the years of service. There are also pensions offered by government so it is possible to have both pensions’ types. The types of pensions overseen by government are handled by the Social Security Administration. Then there are disability pensions to help people take care of themselves in the event that they become disabled and are not able to work. This is usually done through a medical professional who has to deem them incapable of work due to health reasons. The first pensions came in 1717 when the “Presbyterian Church created a fund for Pious Uses to provide for retired ministers.” (2) However it was not until 1875 that the first pension was created for the United States and it was by the American Express Company. Then it took till 1884 for the first major employer to catch on and it was by the Baltimore and Ohio Railroad. They...
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...short- and longterm goals, such as funding college for children, business expansion, travel plans, or retirement needs. You should identify these goals with your financial adviser so that his or her recommendations will directly address your needs. (See the CFA Institute fact sheet “Managing the Relationship between You and Your Adviser” for more information on how to effectively communicate with your adviser.) Risk Tolerance Risk is often defined as portfolio volatility, or the fluctuation in the value of your assets over time. At a personal level, risk can mean the chance that you won’t achieve your goals or the risk of losing your savings. Understanding your tolerance for risk, which differs for each investor, is key to choosing an investment program. Your tolerance for risk is a very personal characteristic that may be difficult to determine and may change over time. Your emotional make-up plays a role in your willingness to take risk. But your objective ability to bear risk, given your wealth and financial needs, is important too. Your age may also affect how much risk you can assume: As you become older, there is less time to recover from poor investment results and your appetite to take risk may change — but your wealth and circumstances will probably change too. You may also have different risk tolerances for different parts of your portfolio, for example, money intended for retirement and educational funds for...
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...are representative of economic and market conditions that could occur, and are designed to promote a discussion of appropriate actions that may need to be taken, now or in the future, to help Jayson manage and maintain Jayson financial situation under changeable conditions. Your Current Situation: You have assets of approximately $839,500. You have liabilities of approximately $160,300. Your net worth is approximately $679,200. Jayson wants to retire at age 65 and May wants to retire at age 65. Jayson now have $371,000 in working assets and are adding $34,900 per year. Jayson wants to retire at age 65 and May wants to retire at age 65. Jayson will need the income until the last life expectancy of age 90. Monthly after-tax income needed at that time is $5,000 (in today's...
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...Subject: Pension Plan Disclosure and Reporting Requirement CC: This brief memo will address the topic of Pension Plans. Specifically, it shall discuss the two basic types of pension plans and the other postretirement plan. Then it shall examine the purpose of pension plan reporting requirements, their effect on the financial statements, and the significance of each type of pension plan. It will also examine the positive and negative implications of each of the pension plans. Defined Benefit Pension Plan - A defined benefit plan is a retirement plan set up to pay a fixed annual amount to eligible employees during their retirement. It is called defined benefit because the quarterly or annual contribution is based upon an actuarial determination of what the participants' retirement benefits should be, not on profits. The formulas look at how much money must be contributed in order for there to be enough money to pay a FIXED amount of benefit(s) to recipients in the future. These projections use a reasonable expected rate of return (401kpsp.com, 2012). Defined Contribution Plan- A defined contribution plan is a retirement plan that requires that an individual "account" be set up for each participant in the plan. It is called "defined contribution" because a participant can only contribute a fixed maximum amount to the plan each year. The contributions are not based on the expected retirement benefit, but rather on a percentage that is specified in the plan (401kpsp.com,...
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...Accounting 322 Exam 2 Essays 16 Pre-Tax Accounting Income: Taxable Income: Deferred Tax Liability: This occurs when the pretax accounting income is more than taxable income. This comes from revenues being reported on the income statement before the tax return or an expense that is recognized on the tax return before the income statement. This creates a liability for the income tax deferred that will be paid in the future when the related assets are recovered or liabilities settled. The temporary difference reverses, pretax accounting income will be less than taxable income to compensate for the liability. Can also be better economically than a DTA because of the time value of money, it acts as an interest free loan. (Depreciation) Deferred Tax Asset: This occurs when taxable income is more than pretax accounting income. This comes from revenues being recognized on the tax return before the income statement or expenses being recognized on the income statement before the tax return. This a tax benefit in the form of a future deductible amount. All deductible amounts, such as loss carryfoward create deferred tax assets. If the DTA is more like than not that some portion or all of the amount will be realized, it is lowered by a Valuation Allowance account. Temporary Differences: This is from the differences in financial account and taxes, and the reported amount of and asset/liability and its tax basis. For example, pretax account income may be greater than taxable income...
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...Lien Centre for Social Innovation Social Insight Research Series Inequality, Poverty and Unmet Social Needs in Singapore A Handbook on A Handbook on Inequality, Poverty and Unmet Social Needs in Singapore Lien Centre for Social Innovation CATHERINE J. SMITH (Additional research and writing by John Donaldson, Sanushka Mudaliar, Mumtaz Md Kadir and Yeoh Lam Keong) As this handbook is intended to provide an overview of the arguments of others, the role of the authors largely consisted of compiling, arranging, and contextualizing. Further, the ideas expressed herein, which are various and often contradictory, do not necessarily represent the views of the handbook’s authors, or of the staff and Board of the Lien Centre for Social Innovation. Copyright © March, 2015 by Lien Centre for Social Innovation. All rights reserved. Published by the Lien Centre for Social Innovation Singapore Management University, Administration Building, 81 Victoria Street, Singapore 188065 www.lcsi.smu.edu.sg No part nor entirety of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without the prior written permission of the Lien Centre. Readers should be aware that internet websites offered as citations and/ or sources for further information may have changed or disappeared between the time this was written and when it was read. Limit of Liability/Disclaimer of Warranty: While the publisher and authors...
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...BU 353 Winter 2013 Final Exam – Areas of Concentration Chapter 10 Liability Types of law: 2 main types: Common law: through previous court decisions Statutory law: written by governing bodies Branches of law: Criminal law: codified in the criminal code, for those who act against this Civil (contract and tort): acts that causes losses to another individual/entity -Contract: disputes between obligated contractual parties -Tort: wrongs doings (intentional or not) to one party enacted by another -No liability: not liable, due to lack of consciousness, 2. Breached this duty of care, 3. Caused damages. -Strict liability: liable without being negligent, i.e. faulty products -Absolute liability: conduct caused damage Types of damages: -Compensatory Damages: compensate injured parties for damages -Special damages: monetary losses: medical exp, lost wages, repair, etc. -General damages: nonmonetary losses like emotional distress precedence -Punitive Damages: punish or deter the defendant, most liability coverages doesn’t cover this -Joint and Several Liability: many defendants causing loss. Plantiff can collect damages only once but can choose who to go after which is better since they can choose one with most money Elements of negligence: 1. Duty of Care/ Standard of care 2. Breach of duty would a normal responsible person do this? 3. Breach is proximate cause of damage foreseeable 4. Caused damages How much for...
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...ASSIGNMENT # 2 Human Resource Management Ramish Ashraf 12126003 BTCM Submitted To: Sir Hassan Jabbar Submission Date: -01-2015 Q#1: What are the practical consequences of using employee stock options as a motivator? Ans: Employee Stock Options (ESO): An employee stock option is a contract issued by an employer to an employee to purchase a set amount of shares of company stock at a fixed price for a limited period of time. A stock option granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. An employee stock option is slightly different from a regular exchange-traded option because it is not generally traded on an exchange, and there is no put component. Furthermore, employees typically must wait a specified vesting period before being allowed to exercise the option. Types of Employee Stock Options: There are two broad classifications of stock options issued: 1: Non-qualified stock options (NSO) 2: Incentive stock options (ISO). Practical Consequences Explanation: The idea behind stock options is to align incentives between the employees and shareholders of a company. Shareholders want to see the stock appreciate, so rewarding employees when the stock goes up ensures, in theory, that everyone is striving for the same goals. Critics point out, however, that there is a big difference between an option and the ownership of the underlying stock....
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...Defined Contribution Plan Summary Plan Description Defined Contribution Plan Summary Plan Description Listed below are telephone numbers and website and correspondence addresses for some of the resources UC employees routinely use. RetiRement savings pRogRam ReCoRdkeepeR Fidelity Retirement Services Fidelity Retirement Services website: ucfocusonyourfuture.com 866-682-7787 UC employee website atyourservice.ucop.edu investment oveRsigHt University of California Treasurer’s Office Treasurer’s Office website: ucop.edu/treasurer Written correspondence should be sent to: Office of the Treasurer of The Regents 1111 Broadway, Suite 1400 Oakland, CA 94607-4026 UC HUman ResoURCes UC Retirement Administration Service Center 800-888-8267 Hours: 8:30 a.m.–4:30 p.m., Monday–Friday Written correspondence should be sent to: UC Human Resources P.O. Box 24570 Oakland, CA 94623-1570 if yoU move Notify Fidelity Retirement Services of an address change by calling their Retirement Services Center at 866-682-7787. loCal benefits offiCes Your local Benefits Office is often the best and most convenient resource for answers to questions about your benefits and for benefits publications and forms. The following is a contact list for local campus and lab Benefits Offices. UC Berkeley: 510-642-7053 UC Davis: 530-752-1774 UC Davis Medical Center: 916-734-8099 UC Irvine: 949-824-5210 UC Irvine Medical Center: 714-456-5736 UCLA: 310-794-0830 UCLA Medical Center: 310-794-0500 UC Merced:...
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...What's New This Year Publication 5101 All tax preparers, Quality Reviewers, instructors, and Site Coordinators must pass the Intake/Interview and Quality Review test. Income Virtual Currency The IRS announced that convertible virtual currencies, such as Bitcoin, would be treated as property and not as currency, thus creating immediate tax consequences for those using Bitcoins to pay for goods and services. Taxpayers having transactions in virtual currencies are out of scope for the VITA/TCE programs. Standard Deduction The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2015 are: * Married Filing Jointly or Qualifying Widow(er) - $12,600 (increase of $200) * Head of Household - $9,250 (increase of $150) * Single or Married Filing Separately - $6,300 (increase of $100) Taxpayers who are 65 and Older or are Blind For 2015, the additional standard deduction for taxpayers who are 65 and older or blind is: * Single or Head of Household - $1,550 (no change) Married taxpayers - $1,250 (increase of $50) Personal ExemptionsThe amount a taxpayer can deduct for each exemption increased to $4,000 for 2015. | Standard Mileage For 2015, the following rates are in effect: * 57.5 cents per mile for business miles driven * 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations (no change) ...
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...Lesson 13: Investing in Mutual Funds What is a mutual fund? * A mutual fund is a professionally managed pool of money invested in stocks, bonds and other securities. * By purchasing mutual funds, small investors can easily diversify their investments and enjoy the benefits of professional management. * Investors own units or shares in the fund and benefit proportionately from any increase in value and/or income earned by the investments owned by the fund. The Reasons Investors Choose Mutual Funds | Mutual funds have grown in importance in Canada over the last twenty-five years. As of February 2008, there were 2,038 mutual funds with a total worth of nearly $679 billion – up from only $3.5 billion in 1981.The two major reasons investors choose mutual funds are: 1. Professional management - although there is no guarantee that the fund will outperform the market. 2. Diversification - by asset class (i.e. by holding a mix of stocks, bonds and money market investments) or within each asset class (i.e. by holding a variety of securities within each class). The risk of mutual funds arises from the risks associated with the investments they hold. * For example, a bond fund will be subject to interest rate risk – as interest rates rise, the value of the bonds owned by the fund will decline. | Mutual Funds With and Without Loads A load is a sales commission. In a load fund, the investor pays a commission every time he or she buys units (front-end load)...
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...countries and territories across the globe. The company has global network of subsidiaries and offices in Europe, North America, and Latin America, Asia Pacific and Middle East and other markets. Zurich’s strategy for 2014-16 is designed to deliver sustainable, profitable growth in a changing and more competitive business environment. Group is focusing more closely on the markets and consumer segments where the group has competitive edge. Revenues (FY13): $72 Billion Net Profit (FY13): $4 Billion Market Cap (Q1-14): $45.4 Billion 9. ING Group [pic] ING is a global financial institution of Dutch Origin, headquartered in Amsterdam. The group’s main offerings include services like banking, investment, life insurance and retirement. ING operates in more than 40 countries, with worldwide workforce exceeding 75,000. ING’s...
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...2007 Deloitte Tax Case Study Competition Regional Case Study This is the story of the Vitalité health and fitness phenomenon created by three American heroes. You’ve worked out in their gyms, bought their nutrition books, and devoured their frozen entrees – and you’ve seen them a hundred times on The Ophira Show! You even spent months wearing their “Cal Pal” to find out how many calories you burned. Here’s the story of how they rocketed to the top and the fallout of their success. Macy. When she was in her mid-20s, Macy Vitale was the picture of confidence and, in keeping with her name, Vitality, with a capital V! She graduated from college with a degree in journalism, and, by the time she was 32, her gorgeous face, perky attitude, and deep understanding of current affairs landed her the position of anchor for the Channel 8 evening news. Macy never took anything too seriously. She was such a natural on camera that it couldn’t count as “work.” Her carefree attitude ended one morning when she overheard the director tell the camera man to shoot Macy only when she was seated behind the desk. He whispered, “She’s starting to look a bit wide in the hips.” As soon as they were off the air Macy, picked up the phone and called Mark Newcomb from “Mad Mark’s Gym.” Mark. Mark isn’t your typical trainer. He is serious! He served in the Special Forces in Kuwait in the early 90s, has Masters Degrees in Health Sciences and Nutrition, and a Ph.D. in Kinesiology and Physiology. He has spent the...
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