20 — MANCHESTER HERALD. Mon.. May 24, 19^ BUSINESS Is high school roof Cavers accept Economist sees really leak-proof? the challenge hig money panh . page 21 Alternative to IRA could be bonanza . page 3 . page 13 Your corporation will get a deduction for the payment 000 out of an IRA, he would owe $92,449 in taxes for 1982. By taking advantage of a little-known provision in the whether in the form of salary or profit-sharing con­ If, though, he were to take it out of a salary- defew ^ tax law, you, a corporation employee, may find a bonan­ tributions and it also saves its portion of the Social arrangement, the total tax would be $47,215, a sijal^e Manchester, Conn. za as an alternative to, or even a supplement to, an In­ Your Security taxes. difference. j Foggy tonight; dividual Retirement Account (IRA). According to Kessler, you, the employee, receive 4) Finally, a participant in a salary-deffered arrange­ Tuesday, May 25, 1982 Known as Qualified Cash or Deferred Arrangements, Money's several benefits in addition to the savings on Social ment can still contribute to an IRA, supplementing his warm Wednesday this overlooked “salary reduction" plan permits you an Security. retirement income. Single copy 25(t employee, to make a tax-deductible contribution to a Worth 1) You are not necessarily limited to the $2,000 con­ Of course, since the vehicle for these arrangements is — See page 2 corporate profit-sharing plan in amounts greater than Sylvia Porter tribution, the maximum annual limit on IRA con­ a profit-sharing plan, the usual limits for profit-sharing lEanrtoatrr Mrralb the annual IRA limit of $2,000 with potentially more tributions. plans apply. favorable treatment upon distribution. In addition, 2) The deferred salary can be distributed, without Generally, if an employer is already contributing 15 these plans provide for potentiai additional savings. penalty, upon separation from employment or retirp- percent of total compensation to a profit-sharing plan, Here’s how they work: ment even if you have not reached age W Vi, although in­ no additional deductions would be available for deferred The corporation — two or more employee's es­ come tax will have to be paid. Premature withdrawals employee contribution. tablishes a qualified profit-sharing plan. If it already from an IRA, on the other hand, are subject not only to AND NOTE: This obviously is a oroeram geared to has such an arrangement, no new plan is necessary. A Barry Kessler of the New York accounting firm of income taxes and a 10 percent penalty tax, but also to higher income emjiloyees. Major participation by clause is simply inserted into the plan permitting an Touche Ross & Co. In blunt terms, for you, a higher in­ other penalties which may be imposed by a bank or in­ lower paid workers would be required — and strictly en­ employee to elect annually to defer taking a portion of come employee, to get the most out of the plan, middle- surance company where funds are kept. forced under “anti-discrimination” regulations. his or her cash salarv (let's sav 5 percent) The com- (“Sylvia Porter’s New Money Book for the 80s,” 1328 British acdvance and lower-income employees also must participate. 3) Also, unlike an IRA, when the distribution is made pany contributes the deferred salary into the profit- As with an IRA, you need not pay any tax on the por­ from a salary-deferred arrangement, the favorable 10- pages of down-to-earth advice on personal money t sharing plan. For an employee making more than ' tion of your salary deferred. year forward-averaging income tax calculation is management, is now available through her column. 2 000 a 5 percent contribution would be more than the $2.- In addition, if your salary does not exceed the Social available. For instance, says Kessler, consider one Send $9.95 plus $1 for mailing and handling to "Sylvia OOo’top permitted by an IRA. The company would also Security wage base ($32,000 in 1982), you save by not employee (married, filing jointly) with a taxable in­ Porter’s New Money Book for the 80s,’’ in care of this make its regular contribution to the profit-sharing plan. having to pay Social Security taxes on the amount come this year of $60,000 and with $150,000 in tax- newspaper, 4400 Johnson Drive, Fairway, Kan. 66205. But the amount you, an employee, may defer is deferred. Your employer’s tax treatment is the same; deferred savings. If the employee were to take the $150,- Make checks payable to Universal Press Syndicate.) toward airstrip limited by strict IRS “anti-discrimination" rules, says 1 are pushing toward Darwin and By United Press International beachhead. The Argentine junta also ■In B rief Foreign competition blamed threatened to turn to the Soviet Goose Green airstrip about 10 miles J ---------------- - British troops advanced from Union for aid if Washington con­ to the south on East Falkland. An 5 their Falkland Islands beachhead tinues backing Britain. uncensored report in Britain’s Guar­ today toward the strategic Goose At the United Nations, a fifth ses­ dian newspaper Monday said British Stoufjt promoted Green airstrip and were on full alert sion of the Security Council was commandoes had already taken the Petrochemical industry declining for an Argentine offensive to coin­ scheduled to discuss an Irish plan airstrip. HARTFORD — Marilyn J. Stoudt of the Finan­ cide with Argentina’s independence for a 72-hour ceasefire. Panama has ’The Defense Ministry said it had cing Division will be a net importer of films and all other plastics and The U.S. petrochemical industry will not die out en­ day, defense sources said. also produced a proposal to end the no'official confirmation of the troop M anagem ent Ac- By LeRoy Pope mass consumed petrochemical products. tirely, he said, because it is necessary to national No new clashes were reported fighting, but Britain said it would movements, but officials said the couting department DPI Business Writer Significantly, he said, a number of American security, but Union Carbide, DuPont, Monsanto, Dow after a day of air attacks Monday in not accept a cease-fire as long as capture of Darwin and Goose Green of the Connecticut petrochemical plants have been closed and no new ones Chemical and Phillips Petroleum among others are which Britain said it shot down at Argentine troops remain onv the and neutralization of their es­ fJEW YORK (UPl) — The U.S. petrochemical in­ timated 1,500-man Argentine gar­ Bank and Trust Co. dustry, which amounts to about 25 percent of total are being built. pulling out. least seven Argentine warplanes. islands they seized April 2. has been elected In the middle of the rice fields outside Bay City, Tex., In Rome, the Vatican officially rison would be a logical first step chemical volume, is in a period of steep and probably What Foveaux is implying, he conceded, is that the London also said that all its planes assistant treasurer. there is the rusting steel skeleton of what was to have announced that Pope John Paul II towards an all-out attack against the irreversible decline, says Myron Foveaux, legislaUve U.S. chemical industry is writing off most of its returned safely from a bombing raid Ms. Stoudt joined been the administration building of a huge new will go ahead with his visit to Bri­ main Argentine forces around Port representative for international trade of the Chemical petrochemical market as doomed. It can’t compete on the main airfield at the capital. CBT in 1979 as a cor­ petrochemical complex to be put up by Cities Service tain on Friday, but he was canceling Stanley, 50 miles to the east. Manufacturers Association. much longer in plastic films, containers, cups, bottles Port Stanley. porate analyst and in and even some textile fibers with the plants that are run Co. Cloud cover over the Falklands meetings with political leaders. It Officials said the task force was This stems, Foveaux said, from the huge Asked what is the solution to the problem, Foveaux on full alert for a possible attack 1981 became the petrochemical plants being built by Canada, Mexico and abroad on various kinds of subsidies or for social and was reported clearing, improving had been speculated he would cancel bank's asset/liability political aims rather than profit in the free enterprise said neither the federal government nor the chemical conditions for new Argentine air at­ the trip to England, Scotland and timed to coincide with Argentina’s some of the other oil producing countries and operated manufacturers have any practical answers right now. May 25 independence day. Herald photo by Tarquinlo planning officer. She on principles having nothing to do with free enterprise definition. tacks. Wales because of the Falklands is a g raduate of Several other factors are contributing to the weak “The rest of the chemical industry will sui-vive and its Earlier, Buenos Aires admitted crisis. ’The Buenos Aires government economics. j energies will be turned to profitable specialty chemicals marked today’s 172nd anniversary Pennsylvania State They run these plants to create jobs, to get rid of sur­ U.S. petrochemical position, he said. Among these are that British forces that landed on Defense sources in London said MCC cleanup University, where and other innovative products,” he said. “But we can’t that British forces, striking of Argentina’s declaration of in­ plus oil and for reasons of national prestige, he said. the strength of the U.S. dollar abroad, which made the South Atlantic islands Fridav, she received a just go back to the pre-plastic era of paper, metals and 54 southward from their beachhead.