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 Protecting the Tax Advantage of Your Deferred Compensation |
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Deferred compensation plans are often used to provide for the deferral of salary, incentive compensation (i. For example in 2005 one can contribute up to $170,000 of compensation into a tax-deferred Solo-DB plan. The new rules apply to nonqualified deferred compensation plans at taxable and tax-exempt organizations. Given the potentially huge tax consequences for non-compliance with the rules, you should consult with your organization's benefit specialist and your tax professionals to figure how your compensation might be affected by these new rules. Beginning in 2005, deferred compensation programs that are not in compliance with the new rules may be taxed as wages, slapped with a 20% excise tax, plus charged an interest penalty.
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| Making Every Penny Count |
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On May 25, 2005 and retroactive back to January 1, 2005 the IRS has redefined section 415 Compensation to include post severance compensation if it's paid within 2-1/2 months after separation from service. Since the post employment earnings were not included in 401 k or 403 b compensation, these earnings were not a factor in any non discrimination or top heavy testing, as well as not being available for profit sharing or matching contributions. These plans' definition of compensation excluded any post employment earnings as the IRS excluded it from the definition. Plan administrators may find that the new definition of Section 415 compensation presents some administrative challenges in tracking the information, separating it from non eligible compensation and performing timely non discrimination testing. Employers can now amend their 401 k or 403 b plans to accommodate the new definition but may find themselves making additional contributions for compensation paid in the next year.
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| Reading Between The Lines In Annual Proxy Statements |
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CRI specializes in Executive Compensation, Salary Administration, Performance Management, Sales Compensation, and expert witness services. Most large companies have some form of Supplemental Executive Retirement Program (SERP), which provides non-qualified retirement benefits that are over and above those allowed by government regulations. Although in the scheme of things, the lack of an offset to these extra benefits may not be a large cost, it is still a hidden extra benefit that should be quantified and disclosed. Our reference library boasts over 4,800 surveys. In the meantime, let the reader be wary.
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| Almost Anyone Can Open A Roth IRA! |
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The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation. The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. Because of this you really have two limits, one dealing with your compensation and the other dealing with your contribution. You can also get more information directly if you take a look at IRS publication 590 - Individual Retirement Arrangements. If you need more information about Roth IRAs, you should consult a tax professional such as a Certified Public Accountant or Certified Financial Planner.
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| Is a SEP Plan Right For Your Business |
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Henry, age 52, a realtor received $60,000 in compensation from self-employment income in 2004. However, the Solo 401(k) does not work for businesses with employees. Thus, if your company plans to hire employees or currently has a few employees, the SEP IRA may be your best choice as a retirement plan that is inexpensive and simple to operate. For 2004, he could contribute a maximum of $27,152 in a Solo 401(k) versus a maximum of $11,152 under a SEP IRA. Daniel Lamaute, CEO of Lamaute Capital, Inc.
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| Rules for Simplified Employee Pension Plans better known as a SEP Plans |
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Received less than $450 in compensation (subject to cost-of-living adjustments) during the year. Henry, age 52, a realtor received $60,000 in compensation from self-employment income in 2004. For 2004, he could contribute a maximum of $27,152 in a Solo 401(k) versus a maximum of $11,152 under a SEP IRA. However, the Solo 401(k) does not work for businesses with employees. Thus, if your company plans to hire employees or has a handful of employees, the SEP IRA may be your best choice as a retirement plan that is inexpensive and simple to operate.
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| It Is Never Too Early To Start A Roth IRA! |
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The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation. Because of this you really have two limits, one dealing with your compensation and the other dealing with your contribution. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors by teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market.
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| Brain Snappers and Other Wall Street Nonsense |
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You remember
the old one that they give it to you in the big
print and take it away in the fine print. How about placing a limit bid on a secondary
distribution of a special claim on residual
equity certificates? You didn't understand that?
Believe me you don't want to. That
word I understand, but be sure you read the fine
print to see what is guaranteed. Some of the biggest words are associated with
those special limited partnerships. You can get these in
real estate, hospital construction, oil and gas
pipe lines and the most confusing one of all is
technology.
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| Rules of Simple IRA Your Business Needs to Know |
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You, the employer, are required to make a contribution for every worker who receives $5,000 or more in compensation. While the SIMPLE IRA make senses under certain circumstances, this plan comes with a lot of strings attached. If your business has no employees and you do not expect to hire employees in the near future, consider using a Solo 401(k) with a loan feature instead of a SIMPLE IRA. And, if you have more than 20 employees, look at setting up a regular 401(k) as an alternative. Contributions must continue until the plan is terminated.
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| Begging Your Trust in Africa |
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The Web site of the 419 Coalition contains letters casting the scam as a form of forced reparation for slavery, akin to the compensation paid by Germany to survivors of the holocaust. Governments throughout the world have geared up to protect their businessmen. The US Department of Commerce, for instance, publishes the World Traders data Report, compiled by US embassy in Nigeria. Letters have surfaced recently signed by dying refugees, survivors of the September 11 attacks, and serendipitous US commandos on mission in Afghanistan. The more heightened public awareness grows with over-exposure and the tighter the net of international cooperation against the scam, the wilder the stories it spawns.
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