Greg Younger provides information on 529 college savings plans. Key points:
1) 529 plans offer tax advantages for college savings at the federal and state levels. Assets in 529 plans are expected to grow to $257 billion by 2011.
2) Plans have high contribution limits, over $300,000. Money can be used for qualified education expenses at any accredited college in the US or abroad.
3) Choosing a plan depends on factors like your state's tax benefits, the plan's investment options and fees. Plans differ in their investment strategies and college coverage.
The document summarizes the 2012 legislative session of the North Carolina General Assembly. It discusses reforms made to education, unemployment insurance, infrastructure, energy production, and business regulations. It also outlines opportunities for 2013, including strengthening workforce development, modernizing taxes, reforming unemployment insurance, and continuing regulatory and education reforms.
The document provides an overview and comparison of California's Proposition 30 and Proposition 38 tax initiatives on the November 2012 ballot. It finds that Proposition 38 would generate more education funding overall but most would go directly to schools, while Proposition 30 funds would go to the state general fund to avoid further education cuts. Proposition 30 relies on sales and income tax increases while Proposition 38 uses higher personal income taxes. The document aims to objectively inform about the initiatives' impacts rather than advocate for either one.
The American Recovery and Reinvestment Act of 2009 provided $787 billion to stimulate the US economy through tax cuts, entitlements, contracts, grants, and loans. This included billions of dollars in funding for states like Connecticut through programs in education, healthcare, infrastructure, energy, and more. Connecticut established efforts to identify projects to fund and has begun implementing the stimulus, but some funding sources have conditions that must be complied with.
This document summarizes a presentation given by Diane Oakley of the National Institute on Retirement Security (NIRS) about public pension plans. The presentation discusses opportunities and challenges facing public pensions, stakeholders in public pensions, the importance of focusing on retirement policy, and lessons learned from well-funded plans. It provides statistics on the economic impacts of public pension benefits and expenditures. The presentation aims to distinguish facts from assertions and prevent short-sighted policies in public pension discussions.
The document summarizes Illinois' fiscal crisis and budget challenges. It notes that Illinois faces a $13.7 billion operating deficit for FY2011, equal to 52.2% of its general revenue fund appropriations. To address this, Illinois relies heavily on one-time revenues like debt issuance, fund sweeps, and federal stimulus funds. Over the long term, Illinois has seen the loss of high-paying manufacturing jobs replaced with lower paying service jobs without benefits. This has contributed to economic problems and budget deficits that Illinois has struggled to adequately address through recurring revenues and spending priorities.
The document summarizes the future challenges facing Social Security and Medicare based on the annual trustees report, as well as proposals to stabilize Social Security. It notes that Social Security will only be able to pay full benefits until 2037 after which reserves will be depleted. No cost of living adjustment is expected in 2010-2011 due to low inflation. The document also summarizes provisions in the American Recovery and Reinvestment Act that expand education tax credits and support for higher education.
This document discusses opportunities to expand retirement plan coverage through multiple employer plans (MEPs). It recommends reforms to simplify and improve MEP regulations, including: (1) safe harbors from liability for MEP sponsors and employers; (2) restricting an employer's responsibility for other employers' delinquent obligations; and (3) further simplifying reporting and disclosure obligations. MEPs offer small businesses the features of 401(k) plans at lower costs than standalone plans and allow easy transition to employer-sponsored plans when businesses grow.
SBA Eases Commercial Real Estate Refinancing RulesChristopher Hurn
Kent Hoover's article for the Orlando Business Journal goes into detail about the 504 loan program. After Hoover explains the basics of the 504 loan program, he quotes me about the upcoming 504 refinancings under the new regulations.
The document summarizes the 2012 legislative session of the North Carolina General Assembly. It discusses reforms made to education, unemployment insurance, infrastructure, energy production, and business regulations. It also outlines opportunities for 2013, including strengthening workforce development, modernizing taxes, reforming unemployment insurance, and continuing regulatory and education reforms.
The document provides an overview and comparison of California's Proposition 30 and Proposition 38 tax initiatives on the November 2012 ballot. It finds that Proposition 38 would generate more education funding overall but most would go directly to schools, while Proposition 30 funds would go to the state general fund to avoid further education cuts. Proposition 30 relies on sales and income tax increases while Proposition 38 uses higher personal income taxes. The document aims to objectively inform about the initiatives' impacts rather than advocate for either one.
The American Recovery and Reinvestment Act of 2009 provided $787 billion to stimulate the US economy through tax cuts, entitlements, contracts, grants, and loans. This included billions of dollars in funding for states like Connecticut through programs in education, healthcare, infrastructure, energy, and more. Connecticut established efforts to identify projects to fund and has begun implementing the stimulus, but some funding sources have conditions that must be complied with.
This document summarizes a presentation given by Diane Oakley of the National Institute on Retirement Security (NIRS) about public pension plans. The presentation discusses opportunities and challenges facing public pensions, stakeholders in public pensions, the importance of focusing on retirement policy, and lessons learned from well-funded plans. It provides statistics on the economic impacts of public pension benefits and expenditures. The presentation aims to distinguish facts from assertions and prevent short-sighted policies in public pension discussions.
The document summarizes Illinois' fiscal crisis and budget challenges. It notes that Illinois faces a $13.7 billion operating deficit for FY2011, equal to 52.2% of its general revenue fund appropriations. To address this, Illinois relies heavily on one-time revenues like debt issuance, fund sweeps, and federal stimulus funds. Over the long term, Illinois has seen the loss of high-paying manufacturing jobs replaced with lower paying service jobs without benefits. This has contributed to economic problems and budget deficits that Illinois has struggled to adequately address through recurring revenues and spending priorities.
The document summarizes the future challenges facing Social Security and Medicare based on the annual trustees report, as well as proposals to stabilize Social Security. It notes that Social Security will only be able to pay full benefits until 2037 after which reserves will be depleted. No cost of living adjustment is expected in 2010-2011 due to low inflation. The document also summarizes provisions in the American Recovery and Reinvestment Act that expand education tax credits and support for higher education.
This document discusses opportunities to expand retirement plan coverage through multiple employer plans (MEPs). It recommends reforms to simplify and improve MEP regulations, including: (1) safe harbors from liability for MEP sponsors and employers; (2) restricting an employer's responsibility for other employers' delinquent obligations; and (3) further simplifying reporting and disclosure obligations. MEPs offer small businesses the features of 401(k) plans at lower costs than standalone plans and allow easy transition to employer-sponsored plans when businesses grow.
SBA Eases Commercial Real Estate Refinancing RulesChristopher Hurn
Kent Hoover's article for the Orlando Business Journal goes into detail about the 504 loan program. After Hoover explains the basics of the 504 loan program, he quotes me about the upcoming 504 refinancings under the new regulations.
The document summarizes a Cook County Pension Committee meeting that discussed Illinois Senate Bill 1673 and cash balance pension plans. SB 1673 gives state employees and retirees two options that would impact their pension benefits and retiree health insurance eligibility. It also creates a new cash balance pension plan for employees starting on or after July 1, 2013. Cash balance plans differ from traditional defined benefit and defined contribution plans in how contributions are made and benefits calculated. The committee meeting provided details on how each type of plan works.
The document summarizes a Cook County Pension Committee meeting that discussed Senate Bill 1673 and cash balance pension plans. SB1673 creates two options for state employees and retirees that impact benefits and health care eligibility. It also establishes a new cash balance plan where contributions are placed in a notional account that earns interest credits. The meeting compared defined benefit, defined contribution, and cash balance plans on features like contributions, investment risk, and payouts. It also reviewed how Cook County, Chicago, and Illinois pension plans differ on funding status, employee contributions and COLA adjustments.
The document discusses district and school site budgeting and what principals need to know. It covers three parts: 1) an overview of what site leaders need to know about budgets, 2) school district budgeting, and 3) site-level budgeting. School district budgets are tightly constrained, with 85% of budgets locked up in salaries and benefits, and few discretionary funds remaining of only 2-3%. Principals must understand budgeting to be instructional leaders and avoid potential career problems from financial mismanagement.
The document discusses different approaches to encouraging retirement saving in the UK, specifically whether traditional tax incentives or framing retirement saving options through default options is better. It provides background on pensions, defining defined benefit and defined contribution plans. It also outlines issues facing pension provision like aging populations and low private saving rates. Current trends in the UK show rising pension deficits and controversy over reforms to public pensions.
This chapter discusses various types of gross income including compensation, business income, rental income, dividends, alimony, and discharge of debt. It provides exhibits on key topics such as the constructive receipt doctrine, community property income, items included in gross income, prizes and awards, scholarships and fellowships, and below-market interest loans. The exhibits describe the relevant tax rules and concepts for each topic in a clear and concise manner.
This document provides exhibits summarizing various exclusions from gross income under Chapter 5 of the CCH Federal Taxation Basic Principles textbook. The exhibits cover topics such as Social Security benefits, interest on U.S. savings bonds, fringe benefits, group life insurance, annuities, damage awards, cafeteria plans, adoption assistance, tuition reduction plans, and dependent care assistance programs. The exhibits include definitions, examples, thresholds, and calculations for determining the tax treatment of these various income items.
The section of Solutions for America discusses the President's budget, the rise of welfare and the collapse of marriage, among other things. It offers several solutions for fixing these broken institutions.
The Individual Pension Plan (IPP) allows for larger tax deductible contributions than an RRSP, potentially providing up to 65% more in retirement assets. The IPP is ideal for self-employed individuals or business owners age 38 or older earning over $122,222 annually. Contributions to an IPP can be much higher than an RRSP and increase based on age, with maximums ranging from $45,800 at age 40 to $276,900 at age 65. Assets in an IPP are locked in for retirement and protected from creditors. At retirement, the IPP provides predetermined monthly pension payments or other payout options like an annuity.
The document provides information on different strategies for saving for college, including 529 plans, custodial accounts, Coverdell accounts, and strategies to maximize financial aid eligibility. It notes that 529 plans allow tax-free growth and withdrawals for education, while custodial accounts provide more flexibility but taxes are owed on the child's income. Coverdell accounts have lower contribution limits but allow for elementary and high school expenses. To maximize aid, savings should be in the parent's name and student assets/income spent first. When repaying loans, do so regularly and consider tax breaks, consolidation, or deferment if needed.
The document discusses various options for saving for college, including 529 plans, Coverdell ESAs, U.S. savings bonds, and UTMA/UGMA custodial accounts. It notes that 529 plans offer high contribution limits and tax-free growth but have limited investment options. Coverdell ESAs are for smaller annual contributions but provide full investment control. U.S. savings bonds offer principal guarantees and tax benefits for qualifying taxpayers. UTMA/UGMA accounts provide some tax benefits but the child gains control of assets at a young age. The options vary in their flexibility, tax treatment, and suitability for different savers.
This document provides information about using a 529 college savings plan to help pay for rising college costs. It notes that college tuition has increased much faster than inflation or incomes in recent decades. A 529 plan is recommended as a tax-advantaged investment vehicle specifically designed to save for higher education expenses. The benefits of a 529 plan include retaining control over the account, potential estate tax reductions, and state tax deductions or credits in some states. Contributing to a family member's 529 plan is suggested as a way to help secure their future and reduce the financial burden of college.
This document provides an overview of SLM Corporation and its 2009 American Securitization Forum conference presentation. Key points include:
- SLM is the largest originator and servicer of student loans in the US, with a $180 billion managed portfolio, 81% of which is government guaranteed.
- In 2008, managed student loans grew 10% to $180 billion despite a decline in private education loan originations. Core earnings were $526 million.
- Recent legislation provides the Department of Education with broad authority to support the student loan market by purchasing loans. SLM has sold $7.4 billion in loans to the DOE.
- SLM maintains diverse funding sources including 72% funded for
Education funding with 529 savings plans is an important consideration for families saving for college. College costs have risen significantly in recent years. 529 plans allow tax-advantaged savings for qualified education expenses and come with contribution limits and investment options that vary by state. Key factors to consider include potential state tax benefits, who is eligible to contribute, how funds can be used, and what happens if the beneficiary does not attend college. Financial advisors can help families understand their options for education savings.
Forward-‐thinking defined contribution retirement plan sponsors are recognizing the benefits of communicating to employees in a language
they can understand: monthly income. Investment solutions focused on income fundamentally improve the participant experience and ultimately deliver better outcomes.
These two presentations were provided to Abacus Wealth Partners in October 2015 as part of an employee education product training presentation. Please feel free to contact Paul Curley at pcurley@sionline.com or paul.curley.1@gmail.com for a presentation, slides, data, commentary or insight as well.
Twitter: @PaulCurleyBC
Answers to questions from the paying for post secondary expenses part 1 webin...Barbara O'Neill
The document provides answers to 10 questions about financing post-secondary education expenses. It discusses options for refinancing student loan debt, using the Public Service Loan Forgiveness program, saving in 529 college savings plans and Coverdell ESAs, the impact of grandparent-owned 529 plans on financial aid eligibility, the tax benefits of gifts to 529 plans and trusts, and what qualifies as an educational expense for tax benefits. The answers provide details and cite additional resources for more information.
1) Having children requires considerable financial planning and expenditure to meet their present and future needs from diapers through education. This includes providing for their care and protection if you become unable.
2) Government programs can help with costs like maternity leave, child care, and education savings but have income limits. Life insurance and disability coverage are important to financially protect your family.
3) Housing and school choices are major decisions as children grow. Saving early in registered education savings plans maximizes benefits and financial aid eligibility for post-secondary education. Comprehensive financial planning is important every step of the way.
Impact of the SECURE Act 2019 on NQDC Plans and Retirement Distribution Elect...Fulcrum Partners LLC
This document summarizes the impact of the SECURE Act of 2019 on nonqualified deferred compensation (NQDC) plans and retirement distribution elections. It discusses how the SECURE Act extends the required minimum distribution age from 701⁄2 to 72, which may prompt plan participants to elect longer distribution periods. It also explores more flexible distribution options like multiple payment buckets and annual class elections to better manage taxes and cash flow. The document recommends that plan sponsors and participants reevaluate distribution options in light of the SECURE Act changes.
This document discusses setting up an employee retirement benefit plan for CSQC. It begins by outlining the inspiration behind creating such a plan, including anticipating retirements in the coming years and wanting to provide a benefit on par with leading companies. It then discusses lessons learned from benchmarking the retirement program of Claret School, including starting with a vision, periodic evaluations, making the program self-sustaining, and prioritizing employees' needs. The document concludes by addressing questions about the minimum legal requirements for retirement benefits, who is covered, whether a formal retirement plan is required, and the tax benefits of establishing an accredited private retirement plan.
SLM Corporation is a leading provider of education financing and services. It originates and services federal student loans and offers private education loans and other financial services.
The presentation provides an overview of SLM Corporation, including its scale and leadership position in the student loan market. It also summarizes the company's financial and operating performance in 2008, the impact of new government support programs for student lending, and its diverse sources of fee income.
SLM Corporation aims to offer students and families comprehensive solutions for paying for education from savings and planning through repayment of loans.
The document summarizes a Cook County Pension Committee meeting that discussed Illinois Senate Bill 1673 and cash balance pension plans. SB 1673 gives state employees and retirees two options that would impact their pension benefits and retiree health insurance eligibility. It also creates a new cash balance pension plan for employees starting on or after July 1, 2013. Cash balance plans differ from traditional defined benefit and defined contribution plans in how contributions are made and benefits calculated. The committee meeting provided details on how each type of plan works.
The document summarizes a Cook County Pension Committee meeting that discussed Senate Bill 1673 and cash balance pension plans. SB1673 creates two options for state employees and retirees that impact benefits and health care eligibility. It also establishes a new cash balance plan where contributions are placed in a notional account that earns interest credits. The meeting compared defined benefit, defined contribution, and cash balance plans on features like contributions, investment risk, and payouts. It also reviewed how Cook County, Chicago, and Illinois pension plans differ on funding status, employee contributions and COLA adjustments.
The document discusses district and school site budgeting and what principals need to know. It covers three parts: 1) an overview of what site leaders need to know about budgets, 2) school district budgeting, and 3) site-level budgeting. School district budgets are tightly constrained, with 85% of budgets locked up in salaries and benefits, and few discretionary funds remaining of only 2-3%. Principals must understand budgeting to be instructional leaders and avoid potential career problems from financial mismanagement.
The document discusses different approaches to encouraging retirement saving in the UK, specifically whether traditional tax incentives or framing retirement saving options through default options is better. It provides background on pensions, defining defined benefit and defined contribution plans. It also outlines issues facing pension provision like aging populations and low private saving rates. Current trends in the UK show rising pension deficits and controversy over reforms to public pensions.
This chapter discusses various types of gross income including compensation, business income, rental income, dividends, alimony, and discharge of debt. It provides exhibits on key topics such as the constructive receipt doctrine, community property income, items included in gross income, prizes and awards, scholarships and fellowships, and below-market interest loans. The exhibits describe the relevant tax rules and concepts for each topic in a clear and concise manner.
This document provides exhibits summarizing various exclusions from gross income under Chapter 5 of the CCH Federal Taxation Basic Principles textbook. The exhibits cover topics such as Social Security benefits, interest on U.S. savings bonds, fringe benefits, group life insurance, annuities, damage awards, cafeteria plans, adoption assistance, tuition reduction plans, and dependent care assistance programs. The exhibits include definitions, examples, thresholds, and calculations for determining the tax treatment of these various income items.
The section of Solutions for America discusses the President's budget, the rise of welfare and the collapse of marriage, among other things. It offers several solutions for fixing these broken institutions.
The Individual Pension Plan (IPP) allows for larger tax deductible contributions than an RRSP, potentially providing up to 65% more in retirement assets. The IPP is ideal for self-employed individuals or business owners age 38 or older earning over $122,222 annually. Contributions to an IPP can be much higher than an RRSP and increase based on age, with maximums ranging from $45,800 at age 40 to $276,900 at age 65. Assets in an IPP are locked in for retirement and protected from creditors. At retirement, the IPP provides predetermined monthly pension payments or other payout options like an annuity.
The document provides information on different strategies for saving for college, including 529 plans, custodial accounts, Coverdell accounts, and strategies to maximize financial aid eligibility. It notes that 529 plans allow tax-free growth and withdrawals for education, while custodial accounts provide more flexibility but taxes are owed on the child's income. Coverdell accounts have lower contribution limits but allow for elementary and high school expenses. To maximize aid, savings should be in the parent's name and student assets/income spent first. When repaying loans, do so regularly and consider tax breaks, consolidation, or deferment if needed.
The document discusses various options for saving for college, including 529 plans, Coverdell ESAs, U.S. savings bonds, and UTMA/UGMA custodial accounts. It notes that 529 plans offer high contribution limits and tax-free growth but have limited investment options. Coverdell ESAs are for smaller annual contributions but provide full investment control. U.S. savings bonds offer principal guarantees and tax benefits for qualifying taxpayers. UTMA/UGMA accounts provide some tax benefits but the child gains control of assets at a young age. The options vary in their flexibility, tax treatment, and suitability for different savers.
This document provides information about using a 529 college savings plan to help pay for rising college costs. It notes that college tuition has increased much faster than inflation or incomes in recent decades. A 529 plan is recommended as a tax-advantaged investment vehicle specifically designed to save for higher education expenses. The benefits of a 529 plan include retaining control over the account, potential estate tax reductions, and state tax deductions or credits in some states. Contributing to a family member's 529 plan is suggested as a way to help secure their future and reduce the financial burden of college.
This document provides an overview of SLM Corporation and its 2009 American Securitization Forum conference presentation. Key points include:
- SLM is the largest originator and servicer of student loans in the US, with a $180 billion managed portfolio, 81% of which is government guaranteed.
- In 2008, managed student loans grew 10% to $180 billion despite a decline in private education loan originations. Core earnings were $526 million.
- Recent legislation provides the Department of Education with broad authority to support the student loan market by purchasing loans. SLM has sold $7.4 billion in loans to the DOE.
- SLM maintains diverse funding sources including 72% funded for
Education funding with 529 savings plans is an important consideration for families saving for college. College costs have risen significantly in recent years. 529 plans allow tax-advantaged savings for qualified education expenses and come with contribution limits and investment options that vary by state. Key factors to consider include potential state tax benefits, who is eligible to contribute, how funds can be used, and what happens if the beneficiary does not attend college. Financial advisors can help families understand their options for education savings.
Forward-‐thinking defined contribution retirement plan sponsors are recognizing the benefits of communicating to employees in a language
they can understand: monthly income. Investment solutions focused on income fundamentally improve the participant experience and ultimately deliver better outcomes.
These two presentations were provided to Abacus Wealth Partners in October 2015 as part of an employee education product training presentation. Please feel free to contact Paul Curley at pcurley@sionline.com or paul.curley.1@gmail.com for a presentation, slides, data, commentary or insight as well.
Twitter: @PaulCurleyBC
Answers to questions from the paying for post secondary expenses part 1 webin...Barbara O'Neill
The document provides answers to 10 questions about financing post-secondary education expenses. It discusses options for refinancing student loan debt, using the Public Service Loan Forgiveness program, saving in 529 college savings plans and Coverdell ESAs, the impact of grandparent-owned 529 plans on financial aid eligibility, the tax benefits of gifts to 529 plans and trusts, and what qualifies as an educational expense for tax benefits. The answers provide details and cite additional resources for more information.
1) Having children requires considerable financial planning and expenditure to meet their present and future needs from diapers through education. This includes providing for their care and protection if you become unable.
2) Government programs can help with costs like maternity leave, child care, and education savings but have income limits. Life insurance and disability coverage are important to financially protect your family.
3) Housing and school choices are major decisions as children grow. Saving early in registered education savings plans maximizes benefits and financial aid eligibility for post-secondary education. Comprehensive financial planning is important every step of the way.
Impact of the SECURE Act 2019 on NQDC Plans and Retirement Distribution Elect...Fulcrum Partners LLC
This document summarizes the impact of the SECURE Act of 2019 on nonqualified deferred compensation (NQDC) plans and retirement distribution elections. It discusses how the SECURE Act extends the required minimum distribution age from 701⁄2 to 72, which may prompt plan participants to elect longer distribution periods. It also explores more flexible distribution options like multiple payment buckets and annual class elections to better manage taxes and cash flow. The document recommends that plan sponsors and participants reevaluate distribution options in light of the SECURE Act changes.
This document discusses setting up an employee retirement benefit plan for CSQC. It begins by outlining the inspiration behind creating such a plan, including anticipating retirements in the coming years and wanting to provide a benefit on par with leading companies. It then discusses lessons learned from benchmarking the retirement program of Claret School, including starting with a vision, periodic evaluations, making the program self-sustaining, and prioritizing employees' needs. The document concludes by addressing questions about the minimum legal requirements for retirement benefits, who is covered, whether a formal retirement plan is required, and the tax benefits of establishing an accredited private retirement plan.
SLM Corporation is a leading provider of education financing and services. It originates and services federal student loans and offers private education loans and other financial services.
The presentation provides an overview of SLM Corporation, including its scale and leadership position in the student loan market. It also summarizes the company's financial and operating performance in 2008, the impact of new government support programs for student lending, and its diverse sources of fee income.
SLM Corporation aims to offer students and families comprehensive solutions for paying for education from savings and planning through repayment of loans.
The document discusses strategies for saving for college, as college costs continue to rise significantly each year. It recommends starting a college savings fund as early as possible and saving a portion of projected costs, such as 50%, to use as a down payment with the rest covered through financial aid, loans, or other sources. The document reviews several tax-advantaged college savings options including 529 plans, Coverdell ESAs, U.S. savings bonds, and UTMA/UGMA accounts. While financial aid can help cover costs, the document notes that student loans typically make up the largest percentage of aid packages, so it is important to focus on savings to minimize reliance on loans.
The Global Plan is an education savings plan approved by the Global Educational Trust that allows parents to save for their child's future education. It offers tax-deferred growth, government grants up to $9,200 per child, and low-risk, professionally managed investment options. Interested individuals can call the sales representatives for more details on how to enroll and start saving through disciplined contributions for their child's college or university education worldwide.
This document discusses strategies for managing pension plans in the future in light of challenges exposed by the global economic crisis. It addresses both defined benefit (DB) and defined contribution (DC) plans. For DB plans, it suggests qualifying promises made to reduce risk, and exploring flexible designs like those used in the Netherlands. For DC plans, it recommends increasing contribution rates, improving investment strategies, enhancing payout options, and boosting member communication and education to help ensure adequate retirement incomes. Overall, the document advocates a holistic approach considering DB plan design, DC plan strengthening, and efficient pension management processes.
FINC 355 RETIREMENT AND ESTATE PLANNING FINAL EXAMINATION I.docxvoversbyobersby
FINC 355: RETIREMENT AND ESTATE PLANNING
FINAL EXAMINATION
Instructions: This final exam is a mix of multiple choice and true false questions. You must use the answer sheet provided. Questions answered and submitted on the final itself will not be considered.
1. Traditional 401(k) plans can be funded entirely through salary reductions by employees, enabling employers to bear no additional cost for employee compensation.
2. A cash balance plan establishes a separate fund for each plan participant.
3. Defined benefit plans provide more benefit security than do age-weighted or cross-tested plans.
4. All group insurance programs offered to employees must comply with ERISA reporting and disclosure requirements.
5. A cross-tested plan uses a fixed age-weighted formula. The plan is designed to maximize benefits for a firm’s highly compensated employees while providing whatever is necessary for remaining employees to satisfy nondiscrimination regulations.
6. An employee cannot be covered under both a defined benefit and a defined contribution plan.
7. A self-employed person with less than 10 employees can use a money purchase plan to fund his or her own retirement.
8. Unlike a traditional IRA, a Roth IRA contribution is not restricted by active participation in an employer’s retirement plan.
9. An early distribution penalty can be assessed on Roth IRA withdrawals.
10. Account holders with more than one Roth IRA can treat them as separate accounts when calculating tax consequences of distributions from any of them.
11. A trust cannot provide for creditor protectioninsurance
12. Including a spendthrift clause is recommended for children with money management or substance abuse problems.
13. All of the following are true regarding tax implicatons of cash balance plans, except
a. employer contributions to the plan are deductible when made
b. taxation of the employee on employer contributions is deferred
c. the plan is not subject to minimum funding rules of the Internal Revenue Code
d. certain employers who adopt a cash balance plan may be eligible for a business tax credit up to $500
e. employees may make voluntary contributions to a “deemed IRA” established under the plan
14. Which of the following is (are) true regarding elective deferrals in a Section 401(k)?
a. elective deferrals are not subject to Social Security and Federal Unemployment payroll taxes
b. elective deferrals are always made on an after-tax basis
c. if the company elects to have a safe harbor plan, elective deferrals must meet the actual deferral percentage test
d. account funds can be withdrawn without a premature distribution penalty if the employee becomes disabled or dies
e. since employees elect the amount of funds to defer, nondiscrimination tests do not apply to elective deferrals
15. Which of the following types of employer plans are exempt from most or all ERISA provisions?
a. plans of state, federal, or local governments or governmental organizatio ...
This document compares whole life insurance to 529 plans for funding college education. While 529 plans have tax benefits for qualified education expenses, whole life insurance allows tax-free policy loans that can be used flexibly. Whole life also provides a guaranteed cash value not subject to market volatility. A disability waiver rider can also continue premium payments if the policy owner becomes disabled. When applying for financial aid, cash values in whole life policies are not counted as an asset, unlike 529 plan assets. Whole life insurance can play a key role in paying for college individually or alongside a 529 plan.
There are so many ways for people to save for retirement. The problem is many of these vehicles do not provide direct cash flow to government like CPP. CPP payments are handed over to CPPIB. CPPIB then invests money into projects. Liberals have mentioned they like to see more CPPIB with projects in Canada. https://nationalpost.com/opinion/kelly-mcparland-justin-trudeaus-hidden-agenda
Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
This document discusses several common market indicators that can be monitored to understand how sentiment about the European debt crisis may be evolving. It identifies interest rates on sovereign debt, credit default swap costs, levels of borrowing from the European Central Bank, and credit rating changes as some of the most important factors that can reflect or affect market reactions to news from Europe. It also notes that investor responses do not always match what might be expected and that there are many interrelated pieces to the ongoing situation.
This email contains a summary of the Jumpstart Our Business Startups (JOBS) Act signed into law in April 2012. The Act makes it easier for small businesses to raise capital by loosening some reporting requirements for companies with fewer than 500 unaccredited investors. It allows companies to advertise private placements to the general public and raise up to $1 million annually with streamlined registration. The Act also creates a new category called "emerging growth companies" that are exempt from some regulatory requirements for an initial period after going public.
The document discusses considerations for accepting an early retirement offer from an employer. It outlines typical elements of early retirement packages including severance payments, post-retirement medical coverage, and bridging payments. It discusses evaluating an offer by considering tax implications and the impact on retirement benefits. The document also outlines potential consequences of accepting or declining an offer such as less time to save for retirement or facing uncertainty if declining the offer. It provides tips for determining if early retirement is financially feasible.
Social Security faces long-term funding shortfalls due to increasing life expectancies and decreasing birth rates. While current retirees are secure, reforms will likely be needed to maintain benefits for younger generations. Options include raising taxes, raising the retirement age, and investing funds in private accounts. However, the future of the program remains uncertain as politicians debate solutions.
Surviving Financially When You're UnemployedGreg Younger
This document provides advice on surviving financially when unemployed, including:
1. Plan for at least 6 months of unemployment by creating a bare-bones budget and finding ways to increase income such as unemployment benefits, part-time work, or selling possessions.
2. Reduce expenses where possible, like increasing insurance deductibles, selling your car, negotiating bills, or canceling discretionary services.
3. Consider last resort options only if truly desperate, like borrowing from retirement funds, taking a lower paying job, or selling your home. The goal is to avoid short-sighted decisions that could negatively impact your long-term finances.
This document addresses whether it is better to invest extra cash or use it to pay off debt. It explains that you should compare the interest rate on your debts to potential returns on investments. If the debt has a higher interest rate, it is better to pay it off first before investing. However, if investments could earn a higher return than the interest on a debt, it may be better to invest the extra cash instead of paying off the debt. The document provides examples comparing the costs of credit card debt versus savings account returns, and student loan debt versus certificate of deposit returns to illustrate when paying off debt or investing would be more financially advantageous.
The document summarizes various benefits and opportunities for small businesses provided by the American Recovery and Reinvestment Act of 2009 stimulus plan. It outlines several tax incentives that small businesses can claim directly, such as increased small business expensing, more flexibility to claim net operating losses by carrying losses back additional years, and favorable tax treatment on the sale of qualified small business stock. It also discusses opportunities available through the Small Business Administration, including a temporary reduction or elimination of fees on SBA loans, increased loan guarantees, and expansion of the SBA's Microloan program. The document encourages small business owners to consult their financial advisors to determine how to best take advantage of these stimulus plan provisions.
The document summarizes the rules for the first-time homebuyer tax credit for home purchases between April 2008 and November 2009. It notes that the credit was originally up to $7,500 but was expanded by new legislation to up to $8,000 for homes purchased between January and November 2009, with no requirement to pay the credit back as long as the home remains the primary residence for 36 months. It also provides a table comparing the credit rules based on purchase date.
An Individual(k) plan can provide higher contribution limits, greater funding flexibility, and lower costs than other retirement plan options for self-employed individuals or small business owners. Key benefits include the ability to make discretionary employer contributions of up to 25% of compensation, employee contributions of up to $15,500 per year, and loans and distributions from the plan. Individual(k) plans also allow for consolidating other retirement accounts and designating some contributions as Roth 401(k) contributions, which provide tax-free future distributions. The plan may be a good fit for businesses with only owner-employees or those that can exclude common-law employees from participation.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
TechnoXander Confirmation of Payee Product Pack 1.pdf
529 Plan Basics
1. Page 1 of 2
Ameriprise Financial
Greg Younger, CRPC®
14755 N. Outer
Chesterfield, MO 63017
636.534.2092
gregory.d.younger@ampf.com
529 College Savings Plans
529 college savings that's accredited by the Department of Education and,
plans are tax-advantaged depending on the individual plan, for graduate school.
college savings vehicles
• Accelerated gifting: 529 plans offer an excellent estate
and one of the most
planning advantage in the form of accelerated gifting. This
popular ways to save for
can be a favorable way for
college today. Much like
grandparents to contribute A brief history
the way 401(k) plans
to their grandchildren's edu-
revolutionized the world
529 plans were
cation. Specifically, indi-
of retirement savings a
first authorized by
viduals can make a lump-
few decades ago, 529
Congress in 1996.
sum gift to a 529 plan in
college savings plans are revolutionizing the world of college
Known officially as
2009 of up to $65,000
savings. By 2011, assets in 529 plans (college savings plans
quot;qualified tuition
($130,000 for married cou-
and prepaid tuition plans) are expected to grow to $257 billion.
programs,quot; 529 plans
ples) and avoid gift tax,
(Source: Financial Research Corporation)
are so named because
provided the gift is treated
they are governed by
Tax advantages and more as having been made in
section 529 of the
equal installments over a
529 college savings plans offer a unique combination of Internal Revenue
five-year period and no
features that no other college savings vehicle can match: Code.
other gifts are made to that
beneficiary during the five
• Federal tax advantages: Contributions to your account
years.
grow tax deferred and earnings are tax free if the money
is used to pay the beneficiary's qualified education
Choosing a college savings plan
expenses. (The earnings portion of any withdrawal not
used for college expenses is taxed at the recipient's rate Although 529 college savings plans are a creature of federal
and subject to a 10% penalty.) law, their implementation is left to the states. Currently, there
are over 50 different college savings plans available because
• State tax advantages: Many states offer income tax incen- many states offer more
tives for state residents, such as a tax deduction for than one plan.
contributions or a tax exemption for qualified withdrawals.
You can join any state's
• High contribution limits: Most college savings plans let you 529 college savings
contribute over $300,000 over the life of the plan. plan, but this variety
may create confusion
• Unlimited participation: Anyone can open a 529 college
when it comes time to
savings plan account, regardless of income level.
select a plan. To make
• Professional money management: College savings plans the process easier, it
are offered by states, but they are managed by helps to consider a few
designated financial companies who are responsible for key features:
managing the plan's underlying investment portfolios.
• Your state's tax benefits: A majority of states offer some
• Flexibility: Under federal rules, you are entitled to change type of income tax break for 529 college savings plan
the beneficiary of your account to a qualified family mem- participants, such as a deduction for contributions or tax-
ber at any time as well as rollover the money in your 529 free earnings on qualified withdrawals. However, some
states limit their tax deduction to contributions made to the
plan account to a different 529 plan once per year without
in-state 529 plan only. So make sure to find out the exact
income tax or penalty implications.
scope of the tax breaks, if any, your state offers.
• Wide use of funds: Money in a 529 college savings plan
can be used at any college in the United States or abroad
See disclaimer on final page May 10, 2009
2. Page 2 of 2
Ameriprise Financial
• systematically invest your contributions. You'll also be able to
Investment options: 529 plans vary in the investment
change the beneficiary of your account to a qualified family
options they offer. Ideally, you'll want to find a plan with a
member (e.g., siblings, stepsiblings, parents, nieces, nephews,
wide variety of investment options that range from conser-
aunts, uncles, first cousins) with no income tax or penalty im-
vative to more growth-oriented to match your risk toler-
plications. Most plans will also allow you to change your in-
ance. To take the guesswork out of picking investments
vestment portfolios (either for your future or current contribu-
appropriate for your child's age, most plans offer aged-
tions) if you're unhappy with their investment performance.
based portfolios that automatically adjust to more conser-
vative holdings as your child approaches college age.
529 prepaid tuition plans--a distant cousin
Caution: Remember, though, that any investment
There are actually two types of 529 plans--college savings
involves risk, and past performance is no guarantee of
plans and prepaid tuition plans. The tax advantages are the
how an investment will perform in the future.
same, but the account features are very different. A prepaid
tuition plan lets you prepay tuition at participating colleges at
• Fees and expenses: Fees and expenses can vary widely
today's prices for use by the beneficiary in the future. The
among plans, and high fees can take a bigger bite out of
following chart describes the main differences:
your savings. Typical fees include annual maintenance
fees, administration and management fees (usually called
the quot;expense ratioquot;), and underlying fund expenses. College savings plans Prepaid tuition plans
• Reputation of financial institution: Make sure that the Offered by states Offered by states and
financial institution managing the plan is reputable and private colleges
that you can reach customer service with any questions.
You can join any state's State-run plans require you to
With so many plans available, it may be helpful to consult an plan be a state resident
experienced financial professional who can help you select a
plan and pick your plan investments, giving you peace of mind. Contributions are invested Contributions are pooled with
in your individual account the contributions of others and
In fact, some 529 college savings plans
in the investment portfolios invested exclusively by the plan
are advisor-sold only, meaning that
you have selected
you're required to go through a desig-
nated financial advisor to open an ac- Returns are not guaranteed; Generally a certain rate of
count. Always carefully read the 529 your account may gain or lose return is guaranteed
plan issuer's official materials before value, depending on how the
investing. underlying investments
perform
Account mechanics
Funds can be used at any Funds can only be used at
Once you've selected a plan, opening accredited college in the U.S. participating colleges, typically
an account is easy. You'll need to fill out or abroad state universities
an application, where you'll name a
beneficiary and select one or more of the plan's investment
Note: Investors should consider the investment objectives,
portfolios to which your contributions will be allocated. Also,
risks, charges, and expenses associated with 529 plans before
you'll typically be required to make an initial minimum contribu-
investing. More information about specific 529 plans is avail-
tion, which must be made in cash or a cash equivalent.
able in each issuer's official statement, which should be read
carefully before investing. Also, before investing, consider
Thereafter, most plans will allow you to contribute as often as
whether your state offers a 529 plan that provides residents
you like. This gives you the flexibility to tailor the frequency of
with favorable state tax benefits.
your contributions to your own needs and budget, as well as to
Disclosure Information -- Important -- Please Review
The information contained in this material is being provided for general education purposes and with the understanding that it is not intended to be
used or interpreted as specific legal, tax or investment advice. It does not address or account for your individual investor circumstances. Investment
decisions should always be made based on your specific financial needs and objectives, goals, time horizon and risk tolerance.
The information contained in this communication, including attachments, may be provided to support the marketing of a particular product or service.
You cannot rely on this to avoid tax penalties that may be imposed under the Internal Revenue Code. Consult your tax advisor or attorney regarding
tax issues specific to your circumstances.
Neither Ameriprise Financial Services, Inc. nor any of its employees or representatives are authorized to give legal or tax advice. You are encouraged
to seek the guidance of your own personal legal or tax counsel. Ameriprise Financial Services, Inc. Member FINRA and SIPC.
The information in this document is provided by a third party and has been obtained from sources believed to be reliable, but accuracy and
completeness cannot be guaranteed by Ameriprise Financial Services, Inc. While the publisher has been diligent in attempting to provide accurate
information, the accuracy of the information cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legal
interpretations. Accordingly, neither the publisher nor any of its licensees or their distributees shall be liable for any loss or damage caused, or alleged
to have been caused, by the use or reliance upon this service.
Prepared by Forefield Inc, Copyright 2009.
May 10, 2009