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Friday, March 18, 2011

Individual Retirement Accounts

An Individual Retirement Account (IRA)can be a good way for workers to save for retirement. An IRA is actually an investment or savings product (mutual funds, stocks, bonds, certificates of deposit) that comes with special tax advantages. An IRA account can be opened through a financial institution such as a bank, credit union, mutual fund company, or brokerage firm. Two common types of IRAs are the traditional IRA and the Roth IRA. Both come with tax advantages but the timing of the tax advantage is different.



Traditional IRA

A traditional IRA can be tax deductible for the tax year in which you contribute. For example: In 2010 your taxable income is $40,000 and you contribute $5,000 to a traditional IRA by the tax filing deadline for 2010 which is April 18, 2011. This could reduce your taxable income to $35,000 and thus the amount of federal income taxes you pay. Just how much will be tax deductible depends on whether you are covered by an employer sponsored retirement plan and your income. Your money will grow (hopefully, if your investments go well) tax free. You will not have to pay any taxes until you withdraw the money. You must begin taking money from a traditional IRA by the time you reach age 70 ½. The thinking with a traditional IRA is that at retirement your income will be reduced so you will be at a lower tax bracket and thus end up paying less income tax on the money.

Roth IRA

A Roth IRA is different in that it is not tax deductible for the current year but earnings are tax free, so when you withdraw the money you do not have to pay taxes. For Example: In 2010 your taxable income is $40,000 and you contribute $5,000 to a Roth IRA by the tax filing deadline for 2010 which is April 18, 2011. The $5,000 contribution is not tax deductible and will not reduce the amount of taxes for the 2010 filing year. However, you will not have to pay taxes when you withdraw the money or the earnings as long as you follow the rules (described below). So if your contribution grows to $10,000 you will have avoided paying taxes on the $5,000 of earnings. Another advantage is that there is no requirement to take out money when you reach 70 ½, so it can be a good way to transfer money to your heirs.

Taxes and Penalties on Early Withdrawals

Since these accounts come with tax advantages and are designed to help people save for retirement there are penalties for early withdrawal of funds. If you are under 59 ½ years old, withdrawals from a traditional IRA are taxed at your current federal income tax rate. You will also pay a 10% penalty unless the withdrawal is for a qualifying exception which is described below.

For a Roth IRA, since taxes have already been paid on the contributions, there are no penalties or taxes charged on the amount if you take out only the contributed amount and leave the earnings in the account. If you take out the earnings, you owe the federal income taxes and the 10% penalty if you are younger than 59 ½ years old or have had the Roth for less than 5 years.

Some Examples of Qualifying Exceptions for Traditional and Roth IRAs
If you have an early withdrawal for a qualifying exception - such as a disability, first time home purchase, post secondary education expenses, certain medical or health insurance expenses, or periodic payments taken according to IRS rules - an exception may apply and you may want to consult a tax advisor to see if an early withdrawal penalty can be avoided.


This fact sheet was developed by Lisa Leslie, UF/IFAS Hillsborough County Extension and Anita McKinney, UF/IFAS Duval County Extension, 2011. Extension provides research-based community education. Financial management topics include developing a spending plan, financial goals, debt reduction, credit management, using financial institutions, and saving & investing for future goals. For more information contact Lisa Leslie at (813) 744-5519 x143 or lesliel@hillsboroughcounty.org or Anita McKinney at (904) 387-8850 or McKinney@coj.net 
Florida Cooperative Extension is a cooperative service of Florida county governments and the University of Florida. The Institute of Food and Agricultural Sciences (IFAS) is an Equal Employment Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M., University Cooperative Extension Program, and Boards of County Commissioners Cooperating.

Reduced Income or Job Loss Spending Plan

Steps for Financial Control:
When income is reduced because of job loss, pay cut, furlough, or other circumstances it is important to also reduce spending. Use the following worksheets to rework your spending plan to fit your current income.

Step 1: Calculate the amount of reduced income.

Step 2: Calculate fixed expenses and try to find ways to adjust spending.

Step 3: Calculate flexible expenses and try to find ways to adjust spending

Step 4: Compare income and expenses.



Step 1 - Income: 
Calculate net income before and after reduction to see how much you will need to try to cut back on expenses. You may find that you need to use savings to make ends meet, but try to use as little as possible so savings stretch as far as possible. Avoid using credit cards or other types of high cost loans as extra cash.

Sources of Monthly Net Income 

Take home income from paycheck(s)

Unemployment Income

Other Income

Total Monthly Income before job loss

Total Monthly after job loss
  

Step 2Fixed Monthly Expenses: Next, calculate fixed monthly expenses. Two columns are included in case there is a way for you to reduce your current expenses. The bill for some items like insurance may only come once or twice a year, but it is important to plan ahead & try to save each month.

 Expense

 Housing
(Rent or Mortgage)


Insurance:


Health


Automobile


Home or Apartment


Automobile Payment (s)


Phone Service


Television Cable


Internet


Student Loan (s)


Installment Loans (s)


Child Support


Child Care
Money to set aside for
upcoming expenses


Total Fixed Expenses




Current Amount




Adjusted Amount






Step 3 - Flexible Monthly Expenses: Flexible expenses are those expenses that can change each month. Usually, they are also the types of expenses that can be easiest to reduce. Tracking these expenses will help you stick to your plan. Usually, a person has many flexible expenses so the flexible expense table is listed on 2 pages.


Flexible Expense Page 1


Expense

Utilities:

Electricity

Gas

Water

Garbage Pickup

Pest Extermination

Food:

Groceries

Restaurant Purchases

Misc. Purchases

School Lunches

Other

Transportation:

Gas

Auto Maintenance

Bus Fares

Parking

Credit Cards:

Planned Amount

Adjusted Amount





Total Page 1 Expenses





Flexible Expenses Page 2


Expense


Personal Care:
Medications


Clothing

Laundry

Haircuts

Cosmetics

Other

Money to set aside for
emergencies

Pet Care

Pest Extermination

Recreation:

Movies/Videos/DVD

Hobbies

Other

Charitable Donations

Alcohol

Tobacco
Household Care
Cleaning Products
Other Other
Total Page 2
Flexible Expenses
Total of All Flexible
Expenses
(Page 1 + Page 2)



Planned Amount



Adjusted Amount





Step 4 - Compare Income and Expenses:

Total Monthly of All (Fixed + Flexible) Expenses: $__________

Total Monthly Income: $__________

Is income greater than expenses?
If not, are there any ways you can further reduce expenses?



  • What can you trade or share with others?
  • Can you substitute a less costly item?
  • How can you conserve your resources and avoid waste?
  • Can you save on service or repair if you do it yourself?
  • Can you do without this item or wait until later?




Do the best you can. Reduced income will mean challenging choices. Take control of what you can by managing your resources as carefully as possible. Prioritize debts and expenses. Act quickly to cut expenses and make a spending plan so you can pay high priority bills when they are due. 


Hillsborough County Extension is a cooperative service of Hillsborough County Board of County Commissioners and the University of Florida.

 Compiled by : Lisa Leslie, UF/IFAS Hillsborough County Extension Agent, 2009.

Sources:
Boelter, Linda and Gutter, Michael. 2006. Managing Between Jobs: Setting Spending Priorities, University of Wisconsin - Extension, (B3459-01).

Wise, Dena. 2006. Saving-Spending Plan Worksheet. University of Tennessee Extension, (SP613-B).

Courtney, Elaine, 2009. Managing in Tough Times: Downsized Strategies for Spending Less, UF/IFAS Okaloosa County Extension.






 

Family Home Evening Games and Activities



Family Home Evening: 

Play Together…
Stay Together
Families that play together stay together, especially when their play is uplifting and wholesome. Family vacations, holidays, birthday celebrations, and other activities build strong bonds and feelings of self-worth. The phrase “Remember when we…” is sure to bring love and laughter in the years to come.


“Near the end of his life, one father looked back on how he had spent his time on earth. An acclaimed, respected author of numerous scholarly works, he said, ‘I wish I had written one less book and taken my children fishing more often.’ Time passes quickly. Many parents say that it seems like yesterday that their children were born. Now those children are grown, perhaps with children of their own. ‘Where did the years go?’ they ask. We cannot call back time that is past, we cannot stop time that now is, and we cannot experience the future in our present state. Time is a gift, a treasure not to be put aside for the future but to be used wisely in the present.”           —Thomas S. Monson

“Plan and carry out meaningful vacations together, considering our children’s needs, talents, and abilities. Help them create happy memories, improve their talents, and build their feelings of self-worth.”   —Robert D. Hales
 “Music, literature, art, dance, drama, athletics—all can provide entertainment to enrich one’s life and further consecrate it. At the same time, it hardly needs to be said that much of what passes for entertainment today is coarse, degrading, violent, mind-numbing, and time wasting. Ironically, it sometimes takes hard work to find wholesome leisure. When entertainment turns from virtue to vice, it becomes a destroyer of the consecrated life.”             —D. Todd Christofferson

“Create meaningful family bonds that give your children an identity stronger than what they can find with their peer group or at school or anyplace else. This can be done through family traditions for birthdays, for holidays, for dinnertime, and for Sundays.“                                           —M. Russell Ballard



For more on happiness in families, including helpful resources on planning family nights,

Games and Activities


Four Corners—In a room, designate corners by numbers 1 through 4. One person covers his eyes and counts to ten slowly and then without uncovering his eyes calls out, “Corner number____ (pick 1, 2, 3, or 4).” Everyone that is in the corner he calls out sits down. Repeat until only 1 person is left. The last person is the new counter. - Leah Marley
Lights-Out Hide 'n' Seek—This is played just like the original, just turn the lights out and give the seeker a flashlight. In my family we take turns being “it” starting with the oldest on down. Playing in the dark gives us some unique hiding places as well! Have fun! - Renae Peck
Killer Frog—One person will need to go out of the room- this person is the detective. While this person is out of the room, choose one person to be the killer frog so that everybody knows who the killer frog is except the detective. Then get in a circle. Ask the detective to come back in and stand in the middle of the circle. The killer frog will stick his tongue out at the other people in the room and they will make a dramatic death. The detective will try to guess who the killer frog is. If the detective finds out who the frog is then he wins and gets to be the detective again, if the frog wins (by killing everybody before the detective finds out who he is) then he gets to be the detective. - Rachel
Holy Ghost—As a family, make an obstacle course with pillows, chairs, blankets, etc. Then pick one person to be blindfolded and another one to be the Holy Ghost. The Holy Ghost tries to direct the blind folded person through the course with only words (left, right, straight, stop, etc.) while everyone else yells trying to lead them astray. - Tim Bitner
Noah's Ark—Noah says: You have all been invited to come on the Ark, but there are only certain things that you can take with you. Take turns around in a circle and call out what you would like to bring. Pam may want to bring some pancakes; that would be great to eat Joey may think that's a great idea and want to bring some syrup with it but he can't. But he can bring some jam; whereas Susan can bring some syrup. The goal of the game is to bring only items that start with the first letter in your name. The players will not get it at first and you may need to do a few rounds. (Make sure players only bring one item at a time as they go around the circle). Players who figure it out should be told not to say anything. - Palmquist Family
10 Commandment Hopscotch—With side walk chalk make a 10-space hopscotch. As each person throws the rock or bean bag on the numbered space they have to say the commandment that corresponds with that number. If you’re right you get to keep going if wrong you have to keep trying. Each time you move to the next number up you have to say the previous numbers. - Mandy
Build a Foundation—Get a deck of playing cards. Get the same number of cards that you have people (more people works best). Designate one card to be the Prophet. Have everyone draw one card without looking. Don't tell if you received the “Prophet” card. Turn out the lights. The “Prophet” goes around the room when everyone is wandering and taps someone. They become the foundation for the temple, and freeze. When someone comes across the foundation they turn on the lights and everyone tries to guess (not the foundation) who the “Prophet” is. - Hannah
Sardines (Backwards Hide and Seek)—There is an 'IT'. It hides while every else counts to 30. When the people who are not IT finish counting to 30, they will go and look for the IT separately. If you find the IT then you have to hide with them. When everyone is hiding with the IT except for one person, the people hiding will shout SARDINES! - Leah
Chocolate Bar Race—What you'll need: Winter clothes, a die, a bar of chocolate (left in the wrapper) and 2 butter knifes. How to play: the first person dresses in the clothes and then takes the two knives and tried to get a piece of the chocolate, while the second person tried to roll a six. Once a 6 is rolled, player two gets the clothes on and tries to get the chocolate while player 3 rolls. It keeps rotating until all the chocolate is gone. - Nathan
Who's the Animal—You need a person that is it. Everyone stands in the circle, except the person who is it, they stand in the middle. Put a blindfold on the person who is it. Have them say “Go” everyone runs around, not making any clue of where they are. When the person who is it says “Stop,” all of the people stop in the circle again. The person who is it points in a direction, saying an animal. Whoever he/she points to has to make the animal noise that they were told, trying not to sound like themselves. The person tries to guess the person who made the noise. If he/she guesses right, the person who did the animal is it, if not you just pick someone else to be it. - Maren
Murder in the Dark—Get small slips of paper and write each player’s name on each slip of paper. Write IT on one of the papers and put the slips into a bowl or some sort of container. Everyone sits in a circle on chairs and holds hands. Everyone looks away until you say, “Go” or “Start.” The person who is it winks at someone (who dies dramatically, trying not to get caught doing “the crime”). If the person it doesn’t get caught by the end of the round, they win. If someone guesses wrong they must dramatically die. - Jenna
Thimble Game—One person fills a thimble with water (or we use a squirt bottle). He chooses a category (colors, flavors of ice cream, holidays, etc.) aloud. Then he silently makes a choice from that category (blue, chocolate, Christmas, etc.). He then gives each member of family a chance to guess what he is thinking. The “lucky” winner gets the water in his face. (A thimble holds a lot more than you think!) Try this with gospel categories: Modern day prophets, Books of the Old Testament, Articles of Faith, tribes of Israel, etc.  - Cheryl
Tithing Tag—Our family loves to play this game. One person is “bishop”. The bishop goes out of the room, and everyone else chooses someone to hide a penny. The bishop comes in when the penny is hidden, and the bishop finds the penny, and tries to guess who hid the penny. If he guesses right, the person who hid the penny is bishop. - Sarah
Flour Penny Tower—Materials: Flour, a Penny, a butter knife, bowl and plate. Pour flour onto the bowl. Pack it in. place plate on top of bowl and carefully tip the bowl over. Take the bowl off. You should have a perfect nice round flour hill. Put the penny on top. Take turns cutting a chunk of the flour off with the knife. Try to keep the penny on the top of the flour. Eventually the penny will fall. The person who made it fall has to pick the penny up with their teeth (no hands allowed).
Screaming Toes—Everyone stands up. Get in a circle. Everyone chooses someone and looks at their feet. Everyone yells, “SCREAMING TOES!” then looks at the persons face. If they're looking at you, SCREAM! Step out of the circle. The last two people in the circle wins!
Follow the String—You will need lots of string! For every family member have sting, and make them all start at the same place. Then make each person's string go its own direction around the house. Each person follows there string until they can find the end of their string. At the end you and place a prize. This is very entertaining for the whole family! My mom used to make it easier for the younger kids and pretty hard for the older ones!
Marshmallow Mania—Have a bunch of Questions and a bag of marshmallows ready. If someone answers a question correctly, throw a marshmallow at them. The next correct question, throw two, and so on. Before long everyone will be throwing marshmallows and having a great time.
Button, Button, Who Has the Button?—We play button, button, who has the button. For those who may not know the game I will explain. All you need is a button. Everybody sits in a circle. One person in the middle is 'IT'. The button gets passed around in a concealed manner. Of course, one person must hold onto the button without passing it. The others must pretend they are passing it. After all have passed (or not) 'IT' must point out the person with the button. That person becomes 'IT'. - Caryn Stapp
Big Toe Wrestling—Everybody takes off their shoes (socks too, if you're a close family) and sits on the floor. One person is 'IT'. He/She must try to grab at big toes of other family members. If a big toe is held that person is 'IT' or out, whichever. - Caryn
Sabbath Charades—Act out things to do and not to do on the Sabbath. Cut out these actions, place them in a hat and take turns acting them out. (Add more of your own if you like). After someone guesses one, have them say whether or not it is a good Sunday activity. See who can guess the most.
A to Z—Sit in a circle. Go around in a circle and starting with "A," name a thing that Heavenly Father has given us (ant eaters, apples, afterlife, etc.). The next person says a “B” word and repeats the previous given word. By the end of the game, the last person should have to list all 26 words.
Music Concentration—Print out two of these pages (on cardstock if possible). Cut out the squares (make sure they are all the same size). Turn them over, mix them up and see who can find the most pairs. Sunday, at church, see if you can find all of the symbols in the hymn book.
Scripture Chase—Make up scriptures and put it in a hat. Someone will pick a paper and read it out loud and then everyone will open there scriptures and will try to find it. Whoever finds it first will read it out loud and then will get the point. Whoever has the most points wins.
Make a Family Flag—Make a flag for your own family to fly. - Wendy Sorenson
Word Scramble—Use the lesson you are teaching to make up your own game. Take some words out of the lesson, for example if your lesson is about the first vision you could use “grove” “Joseph” Prayer”, etc. Scramble up the letters and put each one on a piece of paper. Let everyone have a word to unscramble and have them tell how that word fits into the lesson. (Use short words if you can. Long words are pretty tough.)
Who Am I? —Everybody has a sticker of a Biblical character name on the back of their shirt. Everyone has to ask different questions to figure out who they are. - Lynnette Schetselaar