I'm off to Vegas to present at the AACS Workshop. I leave today, return home on Tuesday June 2nd, and then it's back to Vegas again on June 12th to speak at the IBS Workshop.
If you would like to meet with me while I'm in Las Vegas for either workshop, please email ahansen@kopsaotte.com, or call 800.975.4829 and we'll set up a time.
Larry Kopsa
Saturday, May 30, 2009
Friday, May 29, 2009
CLUTTER POLICE
A few days ago I was walking by a Cost Cutters Salon and couldn’t help but notice the mess in their window. There was a stack of magazines that had been there for awhile because they were faded out by the sun, some used products that had not been removed, a few pencils, some cords from the computer and a sufficient amount of dust. I commented to the person who was with me, “I wonder if they even know their window looks like that. It sure isn’t very inviting. It definitely says something about the quality of the organization.”
After I said this, my thoughts had to go back quite a few years to my accounting office. One of my clients walked in and looked at some books that were sitting in a pile on the floor and said, “Your really need a book shelf don’t you?” I looked over and I didn’t even realize I had just left things lay around and what that might look like to an outsider.
After thinking about this for a while, I nominated one of our staff to be “Kopsa Otte Clutter Police.” Her job was not only to come to my office but also to the lobby and the other offices to let people know what impression we were giving to an outsider. The Clutter Police Officer wasn’t always negative. She also pointed out some good things that people were doing.
About once a month she went around unannounced to make sure we lived up to our expectation.
Have you taken a look at your salon lately? Maybe you should appoint a Clutter Police.
Larry Kopsa CPA
After I said this, my thoughts had to go back quite a few years to my accounting office. One of my clients walked in and looked at some books that were sitting in a pile on the floor and said, “Your really need a book shelf don’t you?” I looked over and I didn’t even realize I had just left things lay around and what that might look like to an outsider.
After thinking about this for a while, I nominated one of our staff to be “Kopsa Otte Clutter Police.” Her job was not only to come to my office but also to the lobby and the other offices to let people know what impression we were giving to an outsider. The Clutter Police Officer wasn’t always negative. She also pointed out some good things that people were doing.
About once a month she went around unannounced to make sure we lived up to our expectation.
Have you taken a look at your salon lately? Maybe you should appoint a Clutter Police.
Larry Kopsa CPA
CONSUMER CONFIDENCE HITS EIGHT MONTH HIGH
GREAT NEWS
Defying negative news on employment and housing prices, consumer confidence increased this month in the U.S., reaching its highest level in eight months, according to The Conference Board. The optimism substantially topped analysts' forecasts. "Looking ahead, consumers are considerably less pessimistic than they were earlier this year," said Lynn Franco, head of The Conference Board's Consumer Research Center. USA TODAY
Larry Kopsa CPA
Defying negative news on employment and housing prices, consumer confidence increased this month in the U.S., reaching its highest level in eight months, according to The Conference Board. The optimism substantially topped analysts' forecasts. "Looking ahead, consumers are considerably less pessimistic than they were earlier this year," said Lynn Franco, head of The Conference Board's Consumer Research Center. USA TODAY
Larry Kopsa CPA
Thursday, May 28, 2009
TOP TEN FACTS ABOUT TAKING EARLY DISTRIBUTIONS FROM RETIREMENT PLANS
If you are considering taking an early distribution from your retirement plan, here are some things you need to know:
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax.
3. Early distributions must also be reported to the IRS.
4. Distributions you rollover to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You must complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.
6. If you made nondeductible contributions to an IRA and later take early distributions from that same IRA, the portion of the distribution attributable to those contributions is not taxed.
7. If you received an early distribution from a Roth IRA the distribution attributable to contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are several exceptions to the additional 10 percent early distribution, such as when the distributions are used for purchase of a first home, certain medical and educational expenses or if you become disabled.
10. At age 50 you can start taking distributions without the 10% penalty if you take the money over a specified time period. If you are considering this option, make sure you discuss this with your investment advisor.
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax.
3. Early distributions must also be reported to the IRS.
4. Distributions you rollover to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You must complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.
6. If you made nondeductible contributions to an IRA and later take early distributions from that same IRA, the portion of the distribution attributable to those contributions is not taxed.
7. If you received an early distribution from a Roth IRA the distribution attributable to contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are several exceptions to the additional 10 percent early distribution, such as when the distributions are used for purchase of a first home, certain medical and educational expenses or if you become disabled.
10. At age 50 you can start taking distributions without the 10% penalty if you take the money over a specified time period. If you are considering this option, make sure you discuss this with your investment advisor.
ARE YOU READY FOR A NATIONAL SALES TAX?
To paraphrase Ronald Regan, "There is nothing so permanent as a temporary tax."
(Washington Post) -- The Washington Post is reporting that "with budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax."
According to the Post story, the "value-added tax, or VAT," has advocates that say it could "generate the kind of money the nation will need to avert fiscal calamity." A key Senate leader, Sen. Kent Conrad (D-N.D.), said in an interview: "I think a VAT and a high-end income tax have got to be on the table."
According to the story, "a VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. ... Because producers, wholesalers and retailers are each required to record their transactions and pay a portion of the VAT, the tax is hard to dodge. It punishes spending rather than savings, which the administration hopes to encourage."
Read the story at <http://www.washingtonpost.com/wpdyn/content/article/2009/05/26/AR2009052602909_pf.html>
(Washington Post) -- The Washington Post is reporting that "with budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax."
According to the Post story, the "value-added tax, or VAT," has advocates that say it could "generate the kind of money the nation will need to avert fiscal calamity." A key Senate leader, Sen. Kent Conrad (D-N.D.), said in an interview: "I think a VAT and a high-end income tax have got to be on the table."
According to the story, "a VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. ... Because producers, wholesalers and retailers are each required to record their transactions and pay a portion of the VAT, the tax is hard to dodge. It punishes spending rather than savings, which the administration hopes to encourage."
Read the story at <http://www.washingtonpost.com/wpdyn/content/article/2009/05/26/AR2009052602909_pf.html>
Wednesday, May 27, 2009
HEY RETIRED PEOPLE - YOUR STIMULUS CHECK IS IN THE MAIL
Stimulus Payments Being Mailed to Retirees
Eligible working taxpayers most likely have a little more money ($400) in their pocket because they had reduced withholding.
For those whose income consists primarily of social security benefits, supplemental security income, disabled veterans benefits or railroad retirement benefits, the government will send checks for $250 based on information that it already has. Eligible individuals who are collecting these benefits while continuing to work will receive a Making Work Pay Credit of the greater of $250 or $400.
But watch out, this is a one-time payment that will be taxable as ordinary income if the retiree has sufficient income this year.
Larry Kopsa CPA
Eligible working taxpayers most likely have a little more money ($400) in their pocket because they had reduced withholding.
For those whose income consists primarily of social security benefits, supplemental security income, disabled veterans benefits or railroad retirement benefits, the government will send checks for $250 based on information that it already has. Eligible individuals who are collecting these benefits while continuing to work will receive a Making Work Pay Credit of the greater of $250 or $400.
But watch out, this is a one-time payment that will be taxable as ordinary income if the retiree has sufficient income this year.
Larry Kopsa CPA
THE IRS IS FEELING THE ECONOMIC PINCH
IRS tax revenue falls 34%
(USA TODAY) – USA TODAY reports that "federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago." That is the biggest April drop since 1981 according to a study by the American Institute for Economic Research. "Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years," according to the story. The Congressional Budget Office already projects a $1.7 trillion budget deficit for fiscal year 2009.
See the story at <http://www.usatoday.com/money/perfi/taxes/2009-05-26-irs-tax-revenue-down_N.htm>
(USA TODAY) – USA TODAY reports that "federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago." That is the biggest April drop since 1981 according to a study by the American Institute for Economic Research. "Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years," according to the story. The Congressional Budget Office already projects a $1.7 trillion budget deficit for fiscal year 2009.
See the story at <http://www.usatoday.com/money/perfi/taxes/2009-05-26-irs-tax-revenue-down_N.htm>
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