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Show I ( WEEKLY REFLEX DAVIS NEWS JOURNAL, NOVEMBER 15, 1979 .w & I) SIMM rn 3PT" "P W ."V" ; iJOSODY EMlilltBl piaNKsGivililli;! AS THE MAIN I ! 4 II r i I.1' ' l N w ' ' v J i k .A A. & - 'I' With Thanksgiving but a week away, the minds of all d Americans are turned to thoughts of turkey and all the trimmings. As a result, no matter what this turkey created by Burton School in Kaysville may desire, his days are most probably numbered. true-bloode- HIS DAYS ARE NUMBERED Attends Seminar IN KAYSVILLE LAWN MOWER REPAIRING.. bfiB 1 $ Bring It to CSS zq i Your Briggs & Stratton Headquarters" SALES -- SERVICE 7CS-13-13 CHAN SAWS MILLERS SN0W SLOWER S SHARPENING C&S SERVICE SMALLEOTJE REPAIR NEW LOCATION:645 LAWN MOWERS - SHARPENING I NORTH MAIN, KAYSVILLE I REPAIRING - MECHAM - OGDEN - 7G j rn iilfl.r. Airs Cpjjrijft Dahlstet of t Heights- - recently spent three days in Denver, Colo, where she attended the Western States Art Foundation Management Seminar at the Frui I Cosmopolitan Hotel. MRS. DAHLSTET was a representative of Northern k Utah Honor Band. The seminar and workshops were for consultants from ten wes- tern states with 20 representatives from Utah in .5 ADVERTISEMENT . : SPEAKING OF MONEY IF YOUR RETIREMENT PUN IS HALTED By EZRA T. CLARK President Davis County Bank i ' . . ' Since the first of the year, nearly 7,000 employers mostly smaller companies have discontinued retirement programs they have had for 200,000 employees. If you should happen to be one of the employees involved in a pension program that has now been discontinued, your employer will pay you your share of the money that has been se't aside. Such payments are generally referred to as a lump distribution sum EZRA T. CLARK from a qualified retirement program. The money paid out is taxable to you. Should you be involved in such a terminated program, you will receive from your employer a Form 1099 R. This will show the amount of the total distribution. It will also identify what part of the settlement is to be treated as a capital gain distribution and what part is to be treated on your tax return as ordinary income. The ordinary income portion of .your distribution is fully taxable, but only 50 of the capital gain portion is taxable. Now that I have perhaps spoiled your day by telling you of the tax consequences of this lump sum distribution from a plan that has been terminated, I am going to tell you how you can avoid all immediate tax on ; the money. Since you Its called a are no longer covered by a retirement program because your employer has ended his, you are entitled to start one of our own. This is called an Individual Retirement Account. But to escape the tax, you must act within 60 days after you receive the money. Here is what you could do: Deposit the full amount of the distribution and by this is literally meant every penny of it in an IRA (Individual Retirement Account) that you can open at your bank or savings and loan. You could also start an IRA with an insurance company or with the purchase of mutual funds. Here is what happens when you rollover the money: No income tax is due on it this year. Every penny of that money (in an IRA savings account) will start to earn interest for you. The interest earned is not taxable now. Only after retirement, when you start to draw money out of your account, will you pay tax on it then probably at a lower rate than now. Since you had been covered by a pension program for a part of this year, you will be unable under the law conadditional make to tributions other than your amount into your IRA this year. But beginning next January 1 and every year thereafter until you retire, you can deposit into your account up to 15 of your years income, but not more than $1,500.00 a year under the law. Your contribution present becomes immediately deductible on that years income tax return. So maybe you will be better off than before if an inadequate retirement program has been ended. It could be that your tax deductible IRA program will provide you higher benefits than your employers old program would have. Remember the time limit: You must act within 60 days. roll-ove- r. roll-ov- Doug is five years old. Hes a kindergartener at Farmington Elementary School here in Davis County. Right now, hes enjoying a splendid school program. But things are changing. u Davis County doesnt have a huge tax base. Thats because we dont have a lot of industry here. This is a county of residences homes. Our biggest "industry, of course, is Hill Air Force Base. But we arent able tp tax it, because its federal property. However, Congress has approved federal "impact payments to school districts , and Davis schools have benefitted from these appropriations since 1951. These funds have constituted a substantial part of the Davis School District maintenance and operation budget. But this income is dwindling. As recently as 1976-77- , Davis School District received $2,834,501 in federal impact funds. This year, the federal contribution to Davis County is expected to be a million dollars less than the level of three years ago. Thats deflation of income in a period of inflated costs. Davis Countys school population is growing, too. Were adding about a thousand students to our school enrollment every year. All this adds up to a bleak future for Dougs education unless we do something about it. Thats why the Davis County Board of Education is asking property owners to invest an average of $1 a month in addecf' taxes. Thats about what it will cost next year if we approve an authorization for a four mill property tax increase in the election scheduled Nov. 27. Actually, it makes good business sense. If we approve this millage increase, the State of Utah will add 67 cents for each dollar we Davis County taxpayers invest on the first two mills. (The Board of Education will not levy the other two mills unless there is an additional loss of revenue. ) We Davis County residents have always demanded the most value possible for bur tax dollars. Theres nothing wrong with that. We live in a residential area, and that means lots of kids. Weve accepted the fact that schools cost money, and weve been willing to pay as long as the money is used well . Thats why weve formed an organization to tell you about the crunch thats developing in the Davis School District. Doug and most of the 38,150 other children in our schools arent old enough to vote in the November 27th election that will have such a bearing on their futures. So were asking you to vote for them that day. A vote for the tax authorization is a vote for our kids. -- The Leeway for Learning Alliance er , v - David Irvine, Chairman Mrs. Toos Pluim, South Weber Mrs. Nancy Ketchum, Bountiful Rep. Cliff LeFevre, Clearfield Mrs. Elizabeth Simmons, Kaysville Mrs. Marda Dillree, Farmington Mrs. Ardeth Kapp, Bountiful Morris Hansen, Syracuse Lynn Burton, Layton Rep. Robert Garff, Bountiful Douglas Sonntag, Bountiful 3 |