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Show l i Sun Chronic le Thursday August Just about everyone the lookout for legitimate tax breaks these days whether it's in claiming dependents, itemizing deductions, or setting up a personal pension program. Dependents and deductions have long provided individual taxpayers with opportunities for gaining tax advantages; for example, claiming a mother in law or an infant born December 31 as a dependent or being able to deduct the sales tax on the purchase of a new car or a sizable donation to the local church when itemizing deductions. Getting a tax break in setting up a pension program was another story, however, for a large segment of the I. S. work lorce. While most self employed perrsons could realize some important tax benefits with their Keogh retirement plans, such was not the case for millions of while who. workers not were gainfully employed, covered by pension plans and could not gain any tax ad vantages by setting up their own plans. But now things have radically changed for the better for these people, referred to in some quarters the forgotten half " as The reason; New pension legislation enacted by the Congress at the end of last year. A major provision of the law says, in effect, that employees not covered by a pension plan at work can make contributions up to 15 percent of their earnings, to a coupled with his Sexual Security check, might be able to help him make ends meet maximum of $1,300, each year, into their own individual retirement savings program. All monies putin an account, plus any dividends or interest earned, are to accumulate allowed without being taxed until the individual begins to make withdrawals for retirement use at age 59A or later. The tax break emerges when, at age 59'A withdrawals begin and tax is due, many individuals should be retired and in a much lower tax bracket. is on individual an retirement savings program, the picture is considerably brighter. Because the law says an employee can contribute 15 percent of his or her income into a program, up to a maximum of $1,500 each year, Smith can put $l,5t)0 a year into his account. This means that only $12,500 of his annual salary is taxable obviously a significant tax advantage because it places him in a lower tax bracket Now because a person with a retirement savings program can still itemize or, for that matter, take the standard deduction on the tax return, grocery clerk Smith can itemize and claim all the deductions to which he is With In setting up an individual retirement account, an in dividual has the option to up his money into a savings account at a financial in stitution, in a qualified annuity contract, in mutual funds, in trust accounts sponsored by employers and employees associations, and, in finally, U. specail percent of income, whichever is less. In the of event permanent disability, withdrawals can begin immediately. Then there is also the rollover provision which permits an employee who leaves a company before retirement to take out the amount due him from a retirement plan and postpone pa mg any tax until after retirement if the funds are invested in an individual retirement savings program within 60 days of the departure. The law would between the amount he or she receives and the sum of the person's own contributions over the years. start withdrawals and the withdrawals must be large enough so that the fund is depleted within the individuals remaining lifespan as determined by actual tables. There are, of course, some limitations to the program; primarily that no money can lie withdrawn until age 59 A without penalty. At that time the funds can be withdrawn either in a lump sum or in An inperiod r payments. dividual may elect not to begin withdrawing funds until a later age and can, in fact, continue to make contirbutions until age 70''4. At that time, however, the person must Should a person require some funds before age 591, they are available from a retirement savings program, but a 10 percent penalty is assessed on any amount withdrawn early. Furthermore, this early withdrawal must be listed in the individuals total taxable income for that year. In addition, the employee cannot open up a retirement asavings program for five years. In the event of death, all monies become It was a hot day July 9 in Utah and Idaho, and the chief executive officer. had planned for a period of time, UP&Ls president and chief executive officer said, that puts the test to an electric utility. he said, at However, UP&L Co., we expect to be able to carry these rapidly increasing peak loads if our construction program goes forward as planned, because we have scheduled two additional 415,000 kw units in service by 1978. UP&L has never failed to meet its peak load. Last year, the company had its firm system peak of 1,391,000 kw on July 29 between 2 and 3 p.m. The company strives to maintain a 20 percent reserve capacity, Hunter said, for circumstances just like this unexpectedly high peak loads and for use in case of an emergency, such as the failure of its largest generating unit. When not needed, the company serves its interruptible customers from this reserve. Another factor in pushing up the peak load this summer is that annually, or their 18 earned otherwise dividual taxes the require in- to pay, currently, on the difference d that the estimated savings how a individual, let's call him John Smith, benefits of course, and, retirement wise, by starting d retirement program. Smith, who earns an annual salary of $14,000, is employed as a clerk in a neighborhood, independent grocery store that has no pension plan for its very small work force. Prior to the changes in pencould sion law, Smith conceivably put away some money on a regular basis for This sum. retirement Aside from tax benefits, there are other advantages and, at the same time some limitations, that the person considering retirement a savings program should be aware of and recognize. For example, on the advantage side, the program is completely voluntary; that We firm demand for electricity by summer peak load of Utah Power and Lights 1.487.000 kw, but demand hit customers passed last years 1.552.000 kw on July 9, he and kept right on said And it could very well peak load happen again, with an even going up. It happened on Wednesday, higher peak, before this starting about noon, and it summer is over. continued most of the afThe heaviest use of elecwhen our tricity in the year is, in utility ternoon, customers exceeded our jargon, peak load. It lasts estimates of their 1975 peak until enough customers turn air conditioners, requirements by more than off 65,000 kilowatts, according irrigation pumps, or an to UP&L's president and assembly line. But it's that Cantaloupes Skinless Wieners Ground Beef Latge Size Melons From California Serve With a Slice of Lime for o Flavor Treat Serve Plain or Fancy Sterling Brand On A Stick or In A Casserole They're Great At Safeway Buy Any Size Package You Need At This Low Level Price . lM dl6lIT!6i0r!S Eating Pleasure 2 fit ,or Q& ib. (50c Each) 65 - No Seieced S jStik is expensive Beef Short Ribs Hanging Plants eo i 6'ovt each po 399 73' 98' it hoC' Blade Cut USDA Beef Chuck Steaks C USDA Beef Round Steaks C- eib h- .69 1 when you Turkey Roast Canned Pop IMP USDA Plump Grade A & ,, Meoty SSr $' i cans Crogmont Regular or Diet Soft Drinks Shop Compare and Sove At Safeway limitations against the early withdrawal of funds have in individual retirement savings features their advantages because money in an individual retirement savings program cannot be touched to pay off programs, the tax advantages are there its the individuals move. .b. P- 65 1.19 49' Town House Condensed Tomato Soup Compare Th.s Fme Quality with Any Brand 6 Chunk Tuna Nabisco Cereal Kraft Dinner D or ) Jolt ft 13?'" rZ 34' tTZl r 51' 7 . . Pork & S.nce We re Beans , Hl.u j cr P, 3 Peanut Butter Peanut Butter TcZ::Sh Instant Coffee TcC, Kitchen Craft Flour 10 blk, 1.74 Kitchen Craft Flour 25 J.b9 3.85 Gold Medal Flour 10 Gold Medal Flour 25 Convenience Food - 8 SI Bisquick Baking Mix 7; Ice Cream u"95' Great Flavors Snow Star look How You Save oi Heat 'n Serve can decide to offer in one or more geographic areas. None of these services is required by the Federal law. This new law is Title XX of the Social Security Act, signed by the President on Jan. 4, 1975. It calls for the S - 2.87 3 S Fiddle Sticks S Hash Browns 39 24-- Eskimo frozen Treat pkg Potatoes Orange Juice kTum. Whole Strawberries B',1 pkg States rather than the Federal Government to 1.26 39' 489, 99' U Golden Corn jynsior. Velkay Shortening Chuck Wogon Dry Dog Food All on r Waffles Just Heat Serve SI A 7j Zpkgs' Rosarita Dinners Enchilodos Rosarita Cheese Enchiladas y UinnCrS Comb.not.on Plate or decide what services to offer, who is eligible for services, and how services will be distributed in the State. Every State is now receiving comments on the social Shoestring Potatoes SS 3 Bel-ai- items A Prices In Thu Advertisement Effective In (Nome of Town) Monday Through Sunday August 8 Through August 24, 1975 Liu I 4.43 144-o- 183 4.08 109 Zhtoil pkg 12-- pkg d homemaker services, services to protect children and handicapped adults from abuse, neglect, and exploitation; transportation services, and counseling services are examples of services that States may Neighbors Let i Be Friends Friends . . . Fail (f real Ellis Tamales l what social services they want to see offered in their local communities. This unique Federal law requires each State to advertise its proposed social in services program newspapers every year. The State must also give the local needs and accountable to the local public instead of the Federal Government. Each State decides for itself which services to include. Day care services, Low-Lev- Yi 7, 48' 46' 7 con CIS 'lU.rflnh.j This summer people in every county in the United States have a chance, under a new law, to tell their State State-operate- Open Every Hour The Store Is Open Be In A Hurry and Get Safeway Prices Too! tteryday 10 on coal-fire- steam-electri- c five new units of plants 400,000 approximately kilowatts each, the last scheduled to be in operation in 1984. About percent of Utah generation comes from coal-fire- d plants... less than one percent from oil. Seventy percent of the coal-fire90 Powers steam-generatin- g capacity is located at mine-mout- and most future plants also will be at or near mine mouth. The utility has access to a plentiful supply of r, 75' 7Cv services plan it proposes to put in effect on Oct. 1. These plans were announced in the States major newspapers on or before July 2. Individuals and organizations have at least 45 days from the States publication date to get their comments to the State in addition to being situated near quality coal deposits, the company is strategically located between two major western power pools and in case of emergency, the company can draw on neighboring utilities for power. they overlapped some old records by three times as much in some cases. Its hard to be a good middle linebacker, he said. You need to know a lot of things, but once you learn them, you can stick around for a while. Probably an attribute of which a majority of past teams Clearfield have possessed is the lack of the killer instinct. DeVerl agrees that too many times the team makes a great play but then right after loses it on a good play by the opponent. I really dont like to see our bench clear when somebody does he said. something good, If you Thats climb all over a guy when he catches a touchdown pass, then what are you going to say to him when he drops a touchdown pass? Something phony? Im just plain tired of losing at anything, its time for a change. Im here to win, he said. Its no fun to be a loser. Im not here to entertain the people in the stands by giving them close games anymore. I appreciate the fans, but Im here to win. As far as Im concerned, we have got the best coach (Jack Hannum) in the state. He is more prepared than any of them. Were just had the tough breaks in the past, says Hoskins. Quickness is my main asset, Hoskins says. As soon as I lose that, I quit the game. Ive always been the sort of linebacker who kind of sneaks around, plugging up this, cutting off that. Ive often wondered what it could be like just to rip into some of those backs head on. When he sees something," Coach Jack Hannum says, it doesnt take long for it to go from his mind to his feet. If he had the size of some of the glad-handin- many supported, programs more responsive to Nine Hems Or Less Tomato Soup The utility must build generating and transmission facilities for peak usage, E.A. Hunter explained. In the five UP&L has years 1970-7spent $408 million for new plants and equipment and has budgeted outlays of $1.38 billion for 1975-7Much of that projected budget will be used to develop UP&Ls generating capability, based Storage power have needs in excess of their allotment this year, and are purchasing comment before the program is put into effect. The idea is to make these Federally Express yourself. Coldbrook Morgonne Packed In Ouorters Shop Any Doy Of The Week & Save At Sofewoy Saltine Crackers - Another advantage, needed energy from UP&L. coal, unlike the Eastern and West Coast utilities that have governments 7- - Tulargarine ..9 or, some municipalities using Colorado River Upper public an opportunity to air Frozen Hash Brown Potatoes Just Pour Whof you Need ond Store The Rest Puppy Dinner ,b. Whole Chickens Fryer Breasts Bel 3 USDAGrodeA Fresh Fryers Q Potatoes ma 79 ii'i. easier ond SHOP SAFEWAY ...on your way and where you stayl 1.15 Russet zrs 3 1Z SI Crunchy Celery Red RadishesoJr;.:hon3bLX.39 less mere savings program Social like Security, something to supplement retirement income. And, actually, some of the oil-fire- d high-cos- t, plants or units. coal-fire- high-sulph- d Residents may request services 1 Sl ,b. x 7 8 Tom Turkeys Raspberries Fancy Bananas -- 5 51 m Smoked Hams Sliced Beef Liver 10 79 Potatoes Vacotioning and limitations other fact the requirements, remains that the individual retirement savings program is intended strictly for retirement use; it is not a d provide 100 percent more money for retirement than simple deposits made over the years devoid of these tax advantages. tax-wis- e 3:3.51 employees concerned with or perhaps even annoyed at the age restrictions and some of the the event of a action. bankruptcy As a final note, an employee might keep in mind contributions can be put into a program on the basis of regular weekly, monthly, or quarterly deposits or, whenever the employee has some extra cash on hand, or, for that matter, all in a lump sum on the last day of the year. Or for that matter, a person is not obligated to contribute the same total amount each year, or make any deposits in any year. As with many of the in retirement can programs Safeway Regular Iceberg Lettuce estate. For those aspect of Heres U S part of the individuals debts even differ, but some reputable accounting firms have S. Bonds. a is, permission is not requried from an employer. A husband and wife both employed can each set aside up to $1,500 entitled. Individual cases Retirement Individual 21, 1975 agency. In most States the public review period will last until about the middle of August. Details about the plan are available from the State or local social services or welfare office. Some States also are holding public hearings. States may offer services free to people receiving AFCD (Aid to Families with Dependent Children) or SSI Security (Supplemental Income for the aged, blind, or disabled). States may als offer services to people who do not qualify for AFDC or SSI, as long as their income does not exceed 115 percent of the States median income, adjusted for family size. However, States must impose reasonable fees for services frunished to people whose income exceeds 80 percent of the median income level. Under previous Federal rules. States had to offer any basis. service on a State-widNow States will have greater freedom of choice as to what services will be offered and e where offered. However, Federal money available to the State is not changed. Under a continuing 1972 law, a national annual ceiling of $2.5 billion in Federal expenditures was established for social services. This $2.5 billion ceiling is broken down into individual State allotments (on the basis of population); most States do not use all their Federal allotment. This Federal allotment may be used to pay for 90 percent of a States family planning services costs and 75 percent of other social services program costs. The remaining share of social services costs comes from State and local appropriations and from funds donated by individuals and organizations concerned with social services. states middlemen, theyd have to outlaw him. Hed be too good to play. But right now, he has to work for everything he gets and thats the way it ought to be. When the Falcon defensive statistics aren't just right, or the team lets the opposition score late in a game which has been close all along, DeVerl is sure to beef loudly about it. He has a hard time shrugging off letdowns, no matter when they come. Hoskins while not trying to do himself in too much for a football season, keeps himself busy at baseball. Just recently he was chosen as an All Star to play in Las Vegas for the local big league team. Also described as the best defensive catcher ever to come by at Clearfield High. If it hadnt been for a downfall in hitting, hed been another candidate for MVP honors. In all respects, the year has loads of action for Hoskins in both football and baseball. How he uses it is up to him. Its all a disciplined situation, taking one game at a time and winning becomes a habit. And DeVerl Hoskins can help Clearfield football to be a winner. 75-7- 6 |