Free eNewsletter & Special Promotions

Volume 5, Issue 8, August 2007

If the images in this newsletter don't appear, make sure you are connected
to the Internet and click here.

New Regulations Impact Section 403(b) Plans

Beginning in taxable years after December 31, 2008, new 403(b) regulations, made final at the end of July, effectively diminish the degree to which section 403(b) retirement plans differ from other tax-deferred retirement plans. 403(b) plans, which are available to public schools and charitable organizations, have historically been utilized by employees for purposes other than retirement, and the regulations are designed to put an end to that practice.

The new, more comprehensive section 403(b) regulations, the first such regulations released since 1964, require that employers create a plan document that defines the plan’s rules. The written defined contribution plan must outline the terms and conditions of eligibility, limitations, and benefits under the plan. This key requirement places more responsibility for plan management and operation on the employer, and more administrative burden will fall on the employer’s shoulders as a result.

The IRS also wants employers to maintain more control over the plans – monitoring excess contributions, eligibility, loan repayment, and documentation for hardship withdrawals. These actions will result in 403(b) plans being run more like other qualified plans, such as 401(k)s and 457(b)s. In addition, the new regulations call for employers to pay closer attention to the plan offerings available and the cost of plan offerings.

The employee benefit plan specialists at Kemper CPA Group LLP can help you review your existing plan in light of the new 403(b) requirements. Don’t have an employee benefit plan? We can help you design, implement, and administer an employee benefit plan that is right for you. Our professionals are available to answer all of your employee benefit plan questions – contact us today.

Back to the Top

Financial Planning: Sticking to a Budget

Good financial planning begins with understanding your current financial situation and identifying whether you need to improve or are on track to meet your long-term goals. Developing a budget—and sticking to it—is one of the easiest ways to track your spending and identify any problems with your finances.

In addition to long-term planning, budgeting can also help you prepare for more immediate expenses. The new school year is just around the corner, and beginning to account for your finances now can help you prepare. You can also begin to plan for holiday spending and next year’s vacation so that these happy times don’t turn into costly credit card bills.

In order to help you track your personal expenses and determine if you have any problem areas that should be addressed, Kemper CPA Group LLP offers two budget spreadsheets. Information contained within the monthly spreadsheet is courtesy of Free-Financial-Advice.net, and the annual budget spreadsheet is courtesy of the U.S. Chamber of Commerce. These spreadsheets are in Microsoft Excel format and include a more detailed instruction sheet.

If, after completing and reviewing these spreadsheets, you have any questions or concerns about your current financial situation, the professionals at Kemper CPA Group LLP are ready to help! Contact us today.

Back to the Top

Gifting From Your IRA

Throughout the remainder of 2007, taxpayers age 70 ½ or older can take advantage of a provision that allows for contributions from an Individual Retirement Account (IRA) directly to a qualified charitable organization. The provision, which was included in the Pension Protection Act of 2006, is currently only in effect through the end of 2007; it has not been extended to future years. If you plan to utilize this provision, the time to act is now!

Utilizing the qualified charitable distribution provision can be advantageous from a tax perspective. Because the contribution is excluded from your taxable income, you will pay no income tax on the IRA distribution. Further, the contribution can qualify as all or part of your required minimum distribution from your IRA.

As you weigh the option of making charitable distributions from your IRA, keep the following details in mind:

The maximum eligible yearly contribution is $100,000 per taxpayer.

Charitable distributions can be made from either a traditional IRA or a Roth IRA.

Your IRA custodian must make the transfer directly to the qualified charity.

Donations to charitable trusts, donor-advised funds, or supporting organizations do not qualify.

You cannot receive any value from the charity in return for the contribution.

Should you have any questions about how the charitable distribution provision impacts your specific tax situation, contact a Kemper CPA Group LLP office near you. Our professionals can help you determine whether such a distribution is right for you.

Back to the Top

Loose Change

The July/August 2007 issue of the “Loose Change” Newsletter includes the following articles:

Contact Kemper Capital Management LLC for all of your investing needs.

Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities officered through Securities America, Inc., a registered broker/dealer. Member NASD/SIPC. Thomas A. Moore, John D.
Porter, Shawna D. Horne, Jeffery C. Holt, CA insurance Lic. #0E38034, Sheila Lautenbacher, Jessica Daugherty, Joseph M. Mendes, CA Insurance Lic. #0C62535, Gregory Meador, Marcia Elder, Registered Representatives. Insurance services offered through KCPAG Insurance Services LLC. Kemper Capital Management LLC and its subsidiaries are not affiliated with Securities America.

Back to the Top

Warning – The Storm eMail Worm

There is a growing email security threat in the form of a worm known as the Storm email worm.

This is a very aggressive email virus that has continued to evolve in order to sidestep attempts to block it from servers. As a result, millions of computers throughout the United States and Europe have been infected with the Storm email worm.

Storm initially spread via email messages that included a link to a news story covering something dramatic, such as a severe storm. Once security servers learned about the virus and blocked it, the infected emails changed to include links to infected e-greeting cards supposedly from your family, classmates, friends, etc.

If the link in one of the infected emails was clicked, the computer would then be under outside control, and would become part of a huge network of ‘bots’ that in turn send out massive quantities of emails pushing the purchase of low-priced stocks.

The stocks being touted are from companies in which the hackers have shares; the millions of emails being sent via the ‘bots’ in turn drive up the price of the stocks, which the hackers then sell for a huge profit. None of this is new, of course, with the exception of the aggressive nature of the Storm email worm and the sheer volume of emails being sent by the huge network of infected ‘bot’ computers.

To prevent your computer from becoming a victim of the Storm email worm, install solid anti-virus software and keep it up-to-date, and do not open any emails that might be even slightly suspicious. Be especially wary of unexpected email with attachments, and do not open those attachments. A little caution can help prevent hackers from attacking your personal or business computers.

The friendly professionals at Kemper Technology Consulting can assist you with protecting your valuable computer equipment and networks. Contact us today!

Kemper Technology Consulting
Robinson, IL
618-546-5633
www.kempertc.com

Evansville, IN  •  Indianapolis, IN  •  Paducah, KY  •  Effingham, IL

Back to the Top

Please be advised that, based upon current Internal Revenue Service (IRS) rules and standards, the advice herein is not intended to be used, nor can it be used, as the sole basis for decisions. Additional issues may exist that could affect the treatment of the individual transactions, and this narrative does not provide a conclusion with respect to all such issues.

You are currently subscribed as: EMAIL_ADDRESS