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STRATEGIC ISSUES...ONLINE
For week of April 4,
2005, Issue #206
Featured Articles:
1.
IRS Maps Out Rules For New
Designated Roth 401(k)
Contributions
2. 10 More Ways to
Protect Your Identity
3. Tech Tip Weekly:
Double-Indent in MS Word
4. Compliance
Calendar
1. IRS Maps Out
Rules For New Designated
Roth 401(k) Contributions
The IRS has just issued
proposed regulations to
prepare for a major, new
retirement-savings option:
designated Roth
contributions to 401(k)
plans. Starting next year,
employees will be able to
designate all or part of
their contributions to their
401(k) plans on an after-tax
basis, which will make most
distributions tax free.
Comment: The Economic
Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA)
first authorized these
accounts but delayed their
effective date until tax
years beginning after
December 31, 2005. The IRS
said that it is issuing
rules now to give employers
plenty of time to amend
their plans. No plan
sponsor is forced to amend
its plan but no employee may
elect after-tax Roth
contributions without that
amendment.
Comment: Unlike Roth IRAs,
the Roth contribution option
is available to all 401(k)
participants with no AGI
limits. Predictions are
that this difference alone
will make Roth 401(k)s very
popular.
Comment: Unlike Roth IRAs,
Roth 401(k)s would require
investors to begin mandatory
distributions upon reaching
age 70 1/2. Because funds
invested in these 401(k)
plans may be rolled over
into Roth IRAs, participants
have an option that will
allow them to avoid
mandatory distributions.
2. 10 More Ways to
Protect Your Identity
5 this week; 5 more
next week.
1. Burn or shred, with a
cross shredder, any mail or
financial papers with your
personal information on it.
Never recycle them.
2. Call 1-888-5optout and
ask to stop credit card
companies from sending
pre-approved credit card
applications to your house.
They are ticking identity
theft time bombs. Click for
link
http://www.creditinfocenter.com/cards/preventSellLists.shtml.
3. Ask your credit card
firm to cease delivery of
"convenience checks." They,
too, are ticking time
bombs.
4. Beginning in last
December (in Michigan, last
month) you're entitled to
one free credit report each
year. Get it as soon as
possible and review it
carefully.
5. Order a credit report a
month or more before you
make a big purchase or apply
for credit, to be sure there
are no surprises in your
history.
3. Tech Tip Weekly:
Double-Indent in MS Word
Sometimes an indent on the
left just isn't enough when
you're working on a MS Word
document. There are those
days when you need to suck a
paragraph in twice: once on
the left and once on the
right. For example, if you
use a quote from another
paper but don't want to be
accused of plagiarism, you
need to differentiate that
text (or set it apart from
the rest).
Here's how to indent text on
both the left and the right
sides:
1. Pick your
paragraph.
If the paragraph hasn't been
written yet, move the cursor
to where you want to write
the new text. Or put the
toothpick cursor into the
paragraph or just select
multiple paragraphs as a
block.
2. Choose the
Format, Paragraph command.
The Paragraph dialog box
appears. Locate the
Indentation area.
3. Enter the amount
of left indentation.
For example, type .5 to
indent half an inch, or you
can use the up-or-down
arrows to increase or
decrease the left
indentation.
4. Enter the amount
of right indentation.
Type the same value as you
did in the Left box. Check
the Preview part of the
Paragraph dialog box to
ensure your paragraph is
indented as you prefer.
5. Click OK.
To un-indent the paragraph,
you need to repeat the above
steps, but enter zero in
both the Left and Right
boxes.
Watch out when you try to
mix Left and Right indenting
with a First line or Hanging
indent. It could drive you
nuts, until you select
(none) from the Special
drop-down list.
4. Compliance
Calendar
April 6
-Employers deposit Social
Security, Medicare and
withheld income tax for
payments on March 30, 31,
and April 1.
April 8
-Employers deposit Social
Security, Medicare and
withheld income tax for
payments on April 2, 3, 4,
and 5.
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This newsletter
has been
compiled by
Prangley Marks,
LLP for our
clients and
other interested
persons. The
information
presented may or
may not apply to
your facts and
circumstances
and should not
be acted upon
without
professional
advice.
Prangley Marks, LLP
Accountants and Consultants
"The Way We Figure, We Are The Only CPA Firm You Will Ever Need"
333 Bridge Street, NW, 11th Floor Bridgewater Place, Grand Rapids, MI 49504-5356
Phone#: 616-774-9004, Fax#: 616-774-9081