.de Changing to meet the needs of fraternalists.
VESTNIK SPJST Herald
Joining Hands To Touch Lives... .. . Fraternalism for the Family and Our Nation
Official Publication of the SPJST, originally chartered as the Slovanksa Podporujici Jedno a Statu Texas, in 1897
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Postmaster: Please Send Form 3579 to: SPJST Home Office, P. 0. Box 100, Temple, Texas 76503
SPJST IRAs, annuities add value to membership A nondeductible contribution: Retirement should be a time of
peace and contentment. Proper planning can see you through to that point in your life. Using a traditional Individual Retirement Annuity, or IRA, is an excellent means of providing for a retirement supplement. The tax-deductible deposits combined with tax-deferred growth are an attraction to many people concerned with providing needed retirement funds. One of the immediate benefits of contributing to an IRA is a tax deduction many receive on their income taxes. Qualified, tax-deductible deposits to an IRA, when made by April 15, 2001 can be applied to the year 2000 tax year IRA contributors receive a 100 percent deduction on their annual contribution if:
• grows tax-deferred, with earnings sheltered from taxation until withdrawn, • has already been taxed, and will not be taxed again, and • whether deductible or nondeductible—is a step closer to a secure retirement. Basic Guidelines Concerning Withdrawals Each person who has an IRA, whether it is with the SPJST or not, is subject to the same basic government guidelines. There are two basic requirements pertaining to withdrawals from an IRA. The first deals with withdrawals from the account prior to age 59 1/2. Any withdrawal from an IRA prior to age 59 1/2, is subject to normal income taxes plus a 10 percent penalty tax. With the Taxpayer Relief Act of 1997, certain exceptions to the penalty tax were created for "qualified distributions." Those exceptions are as follows:
"A traditional IRA is an excellent means of providing for a retirment supplement."
• they do not receive benefits under an employer's retirement plan, or (if they do) • earn no more than $40,000 if married and filing jointly, $25,000 if filing singly. Check with a competent tax advisor for additional information or guidelines which may apply to you. For those who are participants in an employer plan, IRA deductibility is gradually phased out above these income levels. Even in those cases where IRA contributions are not tax deductible, there are significant benefits to making an IRA contribution.
SPJST Mortgage Interest Rates Rates subject to change without notice
• disability, • qualifying medical expenses, • qualifying education expenses, • unemployment (under certain conditions) • qualifying first home purchase, • death, or • receipt of your IRA assets in equal payments over your life expectancy.
Universal Life 7.25% for Annualized*
Roth IRA
Home or Farm Mortgages:
6.50% for Annualized*
6.50% for 1 to 7 years 7.00% for 8 to 15 years 7.25% for 16 to 20 years 7.50% for 21 to 30 years
Annuity II
Qualified Business Real Estate Mortgages
Annuity I
8.25% for 10 years 8.50% for 11 to 15 years
April 4, 2001
ISSN-07458800
VOLUME 89 NUMBER 14
6.50% for Annualized* Certificates issued 4-1-93 and after 5.50% for Annualized* Certificates issued prior to 4-1-93 *Rates effective 2-1-2001 through 4-30-2001
Family Fun and Important SPJST Dates SPJST Supreme Lodge Meeting, SPJST Home Office April 10 - 12 SPJST Home Office Closed April 13 District One . Spring Meeting at Lodge 17, New Tabor. April 22 District Three Spring Meeting at Lodge 6, Cottonwood April 22 April 22 District Four Spring Meeting in Tahoka, hosted by Lodge 215, South Plains at Center for Housing and Community Development at South Third Street and Avenue K in Tahoka. Starts 12 p.m. April 22 Lodge 172, Pasadena Annual Social Charity Barbecue Lunch at the SPJST Home Office; April 25 proceeds to benefit Temple Cultural Activities Center Lodge 38, Kovar Annual Dinner/Country Auction April 29 Fund Raiser May 12 SPJST State Horseshoe Tournament Lodge 24, Cylcone Mother's Day Barbecue , May 13 District Seven Spring Meeting at Good Shepherd May 20 Lutheran Activity Center; 1630 Goliad Road; San Antonio Lodge 80, Holland Annual Picnic May 20 Memorial Day - SPJST Home Office Closed May 28 Leaders in Training (LIT) Workshop at Peaceable Kingdom June 1-3 Lodge 47, Seaton Annual Picnic June 3 —SPJSTMandatory Distribution The second basic requirement dealing with distributions from an IRA occurs at age 70 1/2. By April 1 of the year following the year the IRA holder turns 70 1/2, a government-mandated minimum distribution must be taken. The amount required to be withdrawn is based on a formula using the fund value and life expectancy. With sufficient time to do proper planning, the SPJST will notify the member in writing of the minimum distribution amount. The member will then have the choice to select the particular scenario for receiving the distribution funds. The information that is sent regarding this matter details in specific dollar amounts and how much can be taken under several different payout options. Because the government places a stiff penalty — a 50 percent penalty tax — on failure to draw the minimum amount when required, the SPJST provides timely notice to help prevent this penalty tax from being charged. The SPJST is concerned with providing the best member services possible. Please note that the SPJST can only give details pertaining to an IRA established within the Society. Any IRA established outside the SPJST would require you to
consult with the appropriate representatives of that institution for minimum distribution requirements. Something to Consider If you have not taken advantage of the tax benefits by purchasing an IRA, please call the SPJST Insurance Department or your local sales representative at (800) 727-7578, for more details. To illustrate how your money can grow in an SPJST IRA or non-IRA annuity, an initial payment of $10,000 in an Annuity II account at the current annualized rate of 6.50 percent, would be valued at $34,807.00 in 20 years. For the benefit of parents and grandparents who are purchasing an annuity for an infant, the projected value of a $10,000 initial payment at an annualized rate of 6.50 percent nterest after 65 years would be a whopping $592,113.00! The SPJST IRA, Roth IRA or annuity. It's something to consider — for yourself, or as a gift for someone special. For an annuity illustration that addresses your personalneeds, please contact your local lodge sales representative or the SPJST Home Office at (800) 7277578. —SPJST-