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1
Will 401(k) Accounts Be Eliminated?
2
Dealing With Losses in 529 Education Savings Accounts
3
Coverdell Savings Accounts
4
Utah 529 College Savings Plans
5
Are We Entering a Recession, You Need to Act Now!

Will 401(k) Accounts Be Eliminated?

Back in October, some influential members of the House of Representatives held hearings to discuss overhauling the 401(k) retirement plan system. Soon thereafter, talk radio, the blogosphere, and even the generally-sober Wall Street Journal erupted with dark warnings of a plot afoot to “nationalize” or “confiscate” everyone’s 401(k) plans and convert them to accounts managed by the Social Security Administration.

The House Education and Labor Committee interviewed a number of retirees, activists, and others to open discussion on the possibility of altering the nature of 401(k) accounts.  The discussions were partly a response to the realization that 401(k) holders had …

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Dealing With Losses in 529 Education Savings Accounts

With stock markets down precipitously and few asset classes that haven’t declined significantly this year, many investors in 529 college savings plans are wondering what to do. In some situations, it may make sense to make a change in your child’s 529 plan.

529s are tax-advantaged savings plans that can be used to pay for college and graduate education expenses.  Investment allocations for these plans are typically set up like target-date funds: the proportion of stock holdings declines as the beneficiary approaches college age.  Unfortunately, with most asset classes taking big dives in price this year, even accounts with …

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Coverdell Savings Accounts

Unlike 529 plans, the rules governing Coverdell Savings Accounts are dictated by the IRS. Thus, there is no variation in these plans from state to state.

Contributions to Coverdell accounts are not deductible on either a federal or state income tax return. However, similar to 529 plans, earnings withdrawn from these accounts are tax-free if used to cover qualified education expenses. Also similar to 529 plans, funds withdrawn that are not utilized for education expenses are taxed as ordinary income and subject to a 10 percent penalty.

Coverdell accounts offer several advantages over 529 plans. First, the definition of qualified …

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Utah 529 College Savings Plans

Utah 529 College Savings Account

Utah offers one of the most attractive 529 plans in the country. Like all 529 plans, contributions to a Utah 529 plan are not deductible on a federal income tax return. However, the State of Utah will allow the contributor to claim a 5 percent tax credit on up to $1,650 per beneficiary if the contributor is single, or $3,300 if the contributor is married filling jointly. A tax credit is a dollar-per-dollar reduction of a tax liability, and is thus more valuable than a tax deduction. Consequently, the state will pay as much as $82.50 of a single contributor’s …

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Are We Entering a Recession, You Need to Act Now!

009 - Recession Act Now CartoonWe’re facing unprecedented times in our economy. The government is in the midst of a $700 billion bailout. The stock market has plummeted and we are in the middle of a housing market meltdown. Unemployment is increasing as well as gas prices (depending on the day). Now that the elections are over the media says we are entering a recession. If you’ve been following the news you already know we’re facing difficult economic conditions and it may seem as if the end is near.

Daily I’m asked about the economy and at least weekly I receive a media inquiry asking …

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