| The plan participant who was ‘active’ but not eligible
This is the time of the year that most individual retirement account contributions are being made, but they may or may not be deductible. If you are active in a company plan, and your income exceeds certain amounts, then you cannot deduct your IRA contribution. If you are not an active participant, then you can deduct your IRA contribution regardless of your income. This sounds simple, but a U.S. Tax Court case ruling last November will change what you thought you knew about the active-participation rules. The case highlights a situation where an employee was not eligible to make a contribution to the company plan for 15 years but still was considered an active participant and thus was denied a tax deduction for the IRA contribution. This is the story of Patricia Marie Colombell, who was denied a tax deduction on her 2002 tax return for her $3,500 IRA contribution, even though she was not permitted to participate in her employers plan and did not ever participate in the plan or so she thought.
Why Congress is silent on Social Security
Last week, a friend sent me an e-mail attachment that claimed that the reason Congress hasnt addressed the Social Security crisis is because members of Congress arent covered by Social Security. I knew that was wrong. Members of Congress have been paying into Social Security since 1983. The e-mail message also claimed that members of Congress have rich pensions that pay them their Congressional salaries for as long as they live. Why should they worry about Social Security? But that information on the Internet, as is the case so often, also is wrong. Members of Congress pay 8% of their salaries into their own pension system. That pension plan is quite generous, as members of Congress with 20 to 25 years of service can retire with up to 80% of their salary. But thats not enough to make members of Congress insensitive to the problems of Social Security.
Suze Orman Hosts Her First Cruise
MIAMI, April 4 /PRNewswire/ -- Suze Orman, America's favorite personal finance expert, will host her first ever cruise from December 9-16, 2007 aboard the Costa Fortuna. During the seven-night Sail With Suze cruise, Orman will answer questions in a tell it like it is, easy-to-understand style while giving advice and direction through four in-depth workshops, including: How To Make More Out Of Less, Retirement Planning, Investments, and Estate Planning. "I am extremely excited to be hosting the first Sail With Suze cruise," said Orman. "We were looking for a vehicle to interact with consumers in a relatively intimate setting over a series of days, where they could walk away with all the tools they need to get started in building their financial future. We believe a cruise is a great way to combine personal financial education in a fun, interactive environment." The stunning 105,000-ton (2,720 passenger) Costa Fortuna is sailing her inaugural Caribbean season from Ft.
IRA Or Roth IRA
Are you ready for retirement? Merrill Lynch Director Alan Fonner lets you in on two retirement plans that could have you sitting pretty. BY ALAN FONNER Whether youve been married two years or 20, its imperative that you and your spouse understand the importance of saving now for retirement. According to the 2006 Merrill Lynch New Retirement Survey, men and women often have different plans when it comes to their retirement lifestyle. Because this disconnect can have huge repercussions for a couple's financial strategy, you and your spouse should speak honestly about how you envision retirement, and then talk with a financial advisor about how to arrange your finances in a way that allows you to realize your shared vision. There are numerous retirement plans to choose from, including the widely known Traditional IRA and Roth IRA.
Finding the right recipe for retirement
Every morning Dale Miller unlocks the doors to his small cafe and starts preparing his signature homemade soups. His wife Gail soon joins him, preparing the side dishes they serve with their menu sandwiches at the Country Garden Caf/.
Although the demands of owning a small business have meant no family vacations for the last couple of years, the Millers are proud of their endeavor. Scattered around the cozy caf/ are wall signs that reflect their outlook on life.
"Dream — Believe — Dare" is one of Gail's favorite signs. And the sign that reads, "Sit, Eat, Relax and Enjoy," reflects the atmosphere they want their clientele to enjoy.
The Millers are part of a growing trend of baby boomers re-defining retirement.
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