a4 - EVENING HERALD. Fri., Jan. 18. 1981 Cut Your Own Taxes Pension plan simplified for smaller companies llv RAY !>«• c r a m : of $200,000, not more than have provided his to the program before it amount to bp credited to become taxable to the could be cut back to 5 per­ a year employee is covered (Fifth of 14 parti) $100,000 of it can 6e col!^ maximum $7,500 contribu­ can take effect. Each each employee's account. employee that year. And If cent in the next year if by an SEP and his lianrbpatrr sidered in making the un­ tion. And that's the percen- employee opens his own The employer Is not per- the employee was younger To make it easier for profits were down, and employer contributes Sl iform pereantage contribu- tage all the other SE P a c c o u n t' w ith a mitted to. attach any, than MV4, a penalty of 10 smaller companies to even eliminated entirely in percent,' or $900, to the' f tion to the pension employees would have savings and loan, bank, in­ strings to an SEP account. percent of the amount Snow provide a pension or a a third year. SEP, the employee could program. receiv^. surance company or If an imprudent employee profit-sharing program for withdrawn would be in- If an employer’s con­ contribute an additional Upeiing Saturday If he wants the With a 7 (A percent for­ brokerage firm. wants to withdraw the. their employees while es­ . curred from the IRS. tribution is less than the $600 and claim it as a UUCATLICD followed by colder maximum pension con­ mula selected for that Employers generally employer’s Contribution to An employer es­ caping the legal and ac­ normal IRA contribution of deductible .item. That is W C H I niZ n temperatures. Details tribution ($7,500) for year, that same . percen­ favor all employees going the pension program the tablishing such a plan is 15 percent of compensa­ because the employee un­ Page 2. counting costs of a regular himself, the president will tage of every eligible to the sam e' financial in­ day after it was made, he not bound to make the pension plan, Congress has tion, to a ceiling of $1,500, der a normal IRA would' then select a 7'A percent employe’s compensation stitution. In that way, one could not be prevented same percentage contribu­ the employee can con­ have been able to con­ provided for the Simplified contribution. Had he been must be contributed to the check covering all from doing so. tion every year. One year, I VOL. C. No. 91 — Manchester, Conn., Saturday, January 17, 1981 Employee Pension under tribute the additional tribute 15 ^ rcen t of his YOVR HOMETOWN NEWSPAPER • Since 1881 • Single Copy 25t • Hgtne Delivery 20e permitted to consider his program. employees is sent to that If the employee did make for example, 10 percent of tax law. amount on a tax deductible $10,000 to a maximum of full $200,000 salary, a 3 per­ Under SEP, every eligi­ institution. With it also such a- withdrawal, the every employee’s pay If an employer accepts basis. $1,500. cent contribution would goes a list showing the 8moun^ withdrawn would the prototype plan ble employee must agree could be contributed; it For example, if a $10,000 (NEXT: Rollovers) ' designed by the Internal Revenue Service, no ad­ vance approval is required before placing this type of Hostages prepared to leave pension into effect. The essential element of 14K GOLD By United Press Inlematio'nal a Simplified Employee Relaled slorie* on page 10. and officials indicated that Carter arrangements to fly the hostages to valued at $1 billion, and another $1.2 it could seal an agreement and carry Pension is its non­ WO Fine Collectibles For Your With a breakthrough apparently may make a quick trip to West Ger­ Algeria or any other country of their billion in securities were being out the complicated financial tran­ discrimination feature. All Neckchains and Bracelets imminent. President Carter Friday acceptance of the message which many if the hostages are released. choice as soon as its assets had been ,transferred to London to permit "a sactions before leaving office Jan. 20. employees must be treated Our ordered $2.2 billion in frozen Iranian was being delivered to Tehran Satur­ The first move to implement an deposited in an escrow account with prompt' transfer to an escrow ac­ On Thursday, Nabavi upped the alike. Any employee 25 or Rm . assets transfered to London as a first day. agreement to free the hostages was the Algerian Central Bank. count for Iran if an agreement can be deadline to the close of the business older must be included in PrIoM SAVE OVER 40%i step towards freeing the 52 American "It is certainly everyone's hope taken after a team of U.S. financipl In Tehran, Iran’s chief hostage- reached.” day — 5 p.m, E.ST — in an apparent 50% OFF hostages before he leaves office experts raced to Algiers to help negotiator said the hostages could be effort to avoid the impression that the plan. The identical that there will he that agreement but “Preparations are being made for percentage of compensa­ 14K Script Initials ■ Tuesday. it is not a certainty and there is no Deputy Secretary of State Warren freed in a matter of hours with only the departure of the Americans,” the Iran was bowing to American tion must be contributed UARTZ WATCHES A senior Iranian official said in way to know until we hear from Christopher arrange the accord the transfer of the assets now holding official said. “We are expecting a pressure. for all employees. 9.40 Tehran the hostages had been them. "rp3 not playing with words before a 5 p.m. EiST deadline set by up their Tekase. reply from Algiers within a matter of Nabavi warned that Iran's attitude The maximum annual The graceful personal touch "prepared for departure” and could with you’when I say we don’t have an Iran. However, a State Department hours." towards the negotiations would that s always in good taste leave as soon as its assets were contribution permitted un­ (Q.U.X.Y.Z not available) agreement with them. We do not,” The Treasury Department said spokesman cautioned "it is con­ Asked where the hostages would be change “radically” unless the United der SEP is 15 percent of transferred to an escrow account in Powell said. Carter, ordered the transfer about 1.6 ceivable” that the delicate deal could flown, the official said: “It has been St'ates took a “practical step’’ total compensation, but not Algeria. Officials said the U.S. message million ounces of gold held by the still fall apart at the last minute. suggested that they will be flown to towards transferring the assets by more than $7,5(X). 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