MISCONCEPTIONS IMPORTANT DOCUMENTS SOURCE OF SAVINGS --> |
SOURCE OF SAVINGS
If you are fortunate enough
to have a job that allows you to save money in a retirement plan or pension, you
will have money to provide security for yourself in the future. The more money
set aside for retirement, the more you will have when you decide to stop working
or are unable to work due to decreased abilities.
TIAA-CREF (Teachers Insurance and Annuity Association, College Retirement
Equities Fund) - Institutional Investor states that "Social Security recently
projected that the program can pay benefits in full until the year 2032. After
that year, Social Security funds will be able to cover only about three-fourths
of its benefits."
"For planning purposes, everyone now 55
or over can reasonably count on full Social Security income throughout their retirement.
If you are younger, Social Security may provide benefits at a somewhat lower level.
At whatever amount, Social Security will probably be the only retirement income
source guaranteed to grow with inflation. To encourage people to supplement their
employer pensions and Social Security with additional savings, the government
has created new tax-favored IRA's."
In many retirement plans
and pensions, people who have invested money are able to withdraw those funds
in case of emergency. For example, someone who has an IRA (Individual Retirement
Account) can access that money if it is needed for medical costs or to cover expenses
that are not covered by insurance companies. Contact your banker, retirement plan
administrator or tax consultant prior to using these funds. Each retirement fund
has its own specific policies and should be consulted before withdrawals are made.
The Bankers Systems guidelines state, "You can withdraw funds
from your IRA without the 10 percent IRS premature-distribution penalty any time
after you reach 59 1/2. You can also avoid the premature-distribution penalty
before the age of 59 1/2 if you become disabled if the distributions are part
of certain periodic payments for medical expenses in excess of 7.5 percent of
your adjusted gross income, for health care insurance..."
According
to the current Internal Revenue Services Instructions for Form 5329 the 10% additional
tax does not apply to Exception number, 03 "Distribution due to total and permanent
disability". In addition, Exception number 07 "Distributions made to unemployed
individuals for health insurance premiums" applies only to IRA's.
Uatpat.org - The Utah Assistive Technology Program is designed to help you know what assistive technology is available, how to get funding for assistive technology, and to provide you with links and resources.