PROView - November 2007 - (Page 19)

FINANCE from either part-time or full-time employment, members need to keep doing business as usual. Otherwise, any tax deductions may not be accepted. Q – Without a regular stream of income this year which many unfortunately have realized this year, members may be forced to take out money from their retirement savings. What would be the impact and is there anything Realtors can do to minimize any penalties or additional taxes? A – While using retirement savings always should be the last resort, it’s unfortunately many who are forced to do so. For those with a 401(K) account, any distributions for those under 59.5 years of age, unless used for medical or educational needs, would carry a 10% penalty as well as taxes on the amount taken out of the account. There is one solution that may fit some, but it’s extremely important to speak with a tax advisor to make sure the solution is the best for an individual. As self-employed business owners, Realtors could open a personal 401(K) plan to which they could transfer funds from any other IRA or 401(K) without penalty. Once established, a certain percentage could then be borrowed against interest, which goes back to the account balance. Important to know is that such a plan would have to be established before the end of the year. This solution is not for everyone, but certainly something to bring up with an tax or financial advisor. This may also be a good time to move funds from a regular IRA to a Roth IRA. Without any gains, taxes may be the lowest they will be for some time and Realtor may consider paying taxes on the amount now instead of further down the line when their taxes may be higher. A distribution from a Roth IRA is tax-free, provided the individual is over 59.5 years of age. Each individual’s financial situation is different and all considerations discussed above should not be viewed as advice. Please contact your tax advisor for advice. MLS Participation Fee Rebate Through renegotiation of our MLS vendor contracts and a stringent cost containment program, PROBiz was able to reduce expenses over the past year. These savings, plus higher than expected MLS renewals has enabled PROBiz to oﬀer a rebate to those members continuing in MLS through June 2008. MLS participants and subscribers who are renewing their membership for 2008 can take advantage of this oﬀer by paying dues online between November 1st and December 27th. The rebate is not available after December 27, 2007. PINELLAS REALTOR® ORGANIZATION November / December 2007 19

Table of Contents Feed for the Digital Edition of PROView - November 2007

PROView - November 2007 Contents Chairman’s Notes: My Year in Review The Long View: The Long View Waiting Room: Waiting Room Brokerage Design: Protecting Your “Rep” On The Internet Feature: Charting the Course for Next Year: Building Your Marketing Plan ProActive: 2008 RPAC Fundraising Chair ProActive: Legislature Sends New Property Tax Reform Ammendment to Voters Marketing: Twelve Step Plan to Make You Feel Better About this Market Finance: Year-End Tax Season Preparation What is RPAC? 2007 RPAC Donor Appreciation Marketplace Analysis Home Sales Report MLS Update MLS Mind Your Manners Your 2008 Memebrship Dues Upcoming Events Calendar of Events & Programs: November / December PROBIZ: IDX Welcome: New PRO Members and Affiliates

PROView - November 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.