$4 Billion
Federal prosecutors in Manhattan brought in nearly $4 billion in a little over a year, a haul that includes a settlement with a giant bank, the forfeiture of an office tower and a dinosaur skeleton.
(Source: Wall Street Journal)
1. What is a myRA?
The myRA (rhymes with IRA) is a new workplace retirement savings account discussed by President Obama in the State of the Union address and subsequently authorized by executive order. The administration hopes that employers who currently don’t offer a workplace retirement plan will make myRAs available to their employees. Only limited details are currently available.
The myRA is a regular Roth IRA with some special features. Your contributions are made on an after-tax basis through payroll deduction. Your contributions are tax-free when withdrawn, and earnings are also tax-free if certain requirements are met. Contributions are invested in newly created government bonds that earn the same variable interest rate that’s available through the government’s Thrift Savings Plan Government Securities Investment Fund (G Fund). For reference, the G Fund earned 2.45% in 2011 and 1.47% in 2012. Your account principal is fully protected — the value of your account can never go down, and the bonds are backed by the full faith and credit of the U.S. government.
2. Is it available now?
No. It is anticipated that the program will start in 2015.
3. Do employers have to offer the myRA?
No. The plan is voluntary. Employers need to sign up by the end of 2014 in order to participate in the pilot program.
4. Do employees have to contribute?
No. Unlike the Auto-IRA that has also been proposed by President Obama, but not yet enacted, employee contributions are totally voluntary.
5. Who can contribute?
According to the White House, myRA accounts are available to “households earning up to $191,000.”
6. Will employers contribute to the myRA?
No.
7. How much can I contribute?
You can open an account with as little as $25, and additional contributions can be as little as $5. You can keep your account if you change jobs. Again, details are limited, but presumably you can contribute up to the annual IRA limit (the limit for 2014 is $5,500), and that would include all of your myRA, traditional IRA and regular Roth IRA contributions. However, once your account reaches $15,000 (or you have had the account for 30 years, whichever comes first) you’re required to transfer the account into a private-sector Roth IRA.
8. When can I access my funds?
This is not entirely clear. According to the Obama administration’s instructions to the Treasury, you can access your funds if you have an emergency. It is not currently clear, however, if the regular Roth IRA distribution rules — which don’t limit withdrawals to emergencies — also apply. (The regular rules allow you to access your funds at any time. Your own contributions are tax-free when withdrawn; earnings are tax-free if you are at least 59½, or disabled, or a first-time homebuyer, and you also satisfy a five-year holding period.) You can transfer your myRA account balance to a private-sector Roth IRA at any time.
9. Why should I invest in a myRA instead of a regular Roth IRA?
The distinguishing features of a myRA are the ability to contribute through payroll deduction, access to the new retirement bond, safety of principal, and the ability to make very small contributions. There will also be no fees to establish or maintain the myRA. However, the myRA, with its single investment option and $15,000 cap, lacks the flexibility of a regular Roth IRA. If you can afford the minimum investment to establish an account, a regular Roth IRA may be the better option.
http://www.nerdwallet.com/blog/finance/2014/myra-what-need-to-know/
41%
Gold purchases by Chinese consumers jumped 41% last year to a record, according to data released Monday by the China Gold Association. The increase was enough to overtake India, which for decades, if not centuries, held the No. 1 spot as the world’s biggest gold buyer, according to estimates from several analysts.
(Source: Wall Street Journal)
1.8%
The percentage of people who voluntarily left their job in the U.S.—the nation’s “quit rate”—hit 1.8% in November, the highest in the recovery and up from a low of 1.2% in September 2009, according to the Labor Department.
(Source: Wall Street Journal)
- Deductions
- Diversions
- Deferrals
- Deflections
- Diminution
3.8%
In the fourth quarter, Twitter said it added just 3.8% more new monthly active users, down from 6.4% growth a month earlier. Shares plunged in after-hours trading.
(Source: Wall Street Journal)
500
RadioShack is planning to close around 500 locations in the coming months, according to people familiar with the matter.
(Source: Wall Street Journal)
To budget accordingly, you must know which ones have far-reaching ramifications.
The expiration of the Federal tax provisions will almost certainly have an adverse impact on a wide swath of taxpayers; increasing the effective tax rate of both large and small businesses, with additional collateral damage to individuals and charitable organizations. Notable expired provisions include higher Section 179 limits, bonus depreciation, energy tax incentives, the R&D credit, and many others.
At the time of this writing, the prospect for retroactive extension of these provisions is unclear at best. Sen. Harry Reid introduced an extender bill (S. 1859) in December that failed to pass by unanimous consent. The Senate Finance Committee is working on another extender bill, but members of both parties have expressed their preference for comprehensive tax reform in favor of tax extender legislation. Whether or not such legislation will be enacted prior to the upcoming mid-term election is anyone’s guess, but by historical standards prospects for near-term, comprehensive tax reform are dim.
Access this comprehensive list now to find out which Expiring Federal Tax Provisions (2013-2023) impact you »
1.9 million
Online insurance company Esurance was the most-tweeted brand of Super Bowl night, with a total of 1.9 million posts on Twitter, according to Nielsen Co., despite the fact that it didn’t buy an ad during the game broadcast.
(Source: Wall Street Journal)
$25.59 Billion
That is Amazon’s sales figure for the fourth quarter, a 20% increase from a year earlier. However, it wasn’t enough to match Wall Street projections.
(Source: Wall Street Journal)