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Show I Utah Farm Bureau News Page 8 October 1975 Heres a new tax law thats is like finding money in your old jacket A new tax break helps you save money with your personal retire- ment fund. This new tax shelter which became effective on January 1 is designed for employees who are not covered by other qualified pension plans and can also be used by people who HR-10 do not have an Keogh pension plan. It allows these people to put aside 15 per cent of their income up to $1500 a year in a Individual Retirement Account (IRA). How much can you save with an IRA Plan? Heres a comparison of two taxpayers in the 25 per cent income tax bracket. Both start with $1500 a year. One taxpayer puts the entire $1500 in a in this example a Country Mutual Life flexible IRA premium retirement annuity. The other pays $375 in income taxes on the $1500 and puts the remaining $1125 in a savings account at 6 per cent interest. In 30 years the IRA plan will accumulate over $47,000 more than a 6 per cent savings account. self-employ- ed tax-deferr- ed fax-deferr- ed Unlike a savings account, you don't pay taxes on your IRA funds, or the dividends, interest or other earnings it generates, until you retire. At that time most of us are in a lower tax bracket. The new law permits your IRA plan to be funded with annuities, mutual funds or other specific methods. Your Country Mutual Life agent has a variety of ways to fund your IRA plan. Talk to him to learn more about this new opportunity to save on income taxes while youre accumulating funds for retirement. 'Based on continuation of Country Mutual Life's current dividend scale. Assumes annual deposit of $1125. Also assumes payment of federal income tax at the rate of 25 on interest earned with remaining interest left on deposit. I |