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Is The Concept of Team Play Dying Along With the Economy?


By Stacie Clifford Kitts, CPA

Throughout my years in the business community, I have heard of employees getting fired because he or she was not a “team player.” The underlying issues varied from self promotion which damaged the company to a general disregard for the job.

For whatever reason, employees who are not team players, do not have the company’s best interest in the forefront of their activities. In contrast, company’s who are successful in promoting team play, or a common attitude regarding the goals of the company, often see higher performing employees and as a consequence a bigger bottom line.

But has the notion of team play fallen away with our current economic crisis?

That seems to be the case at American International Group or better known as “AIG”. Today the New York Times reported that the company will pay out over 165 million dollars in bonuses to executives who work in the company’s financial products unit. The same division of the company that generated record losses and was the driving force behind the government bailout. Despite the objection of treasury secretary Geithner and other lawmakers, the payments will go forward because the company is contractually obligated to pay.

But with all this talk about the company’s obligation to pay, who is asking if the exec’s are obligated to take it? The fact that the company is going through with these bonuses suggests to a reasonable person that the executives are pushing for them.

Although it may be in the best interest of the executive, it certainly is not in the best interest of the company. And it certainly is not in the best interest of the taxpayers who are financing these bonuses for the same people who caused the problem in the first place.

I have to admit, I think this sticks.

In this particular case, the exec’s at AIG who are forcing the company to honor their contracts despite the economic instability of the organization certainly don’t come off as team players. But maybe that explains the company’s current predicament . Company Executive + greed – team player = government bailout

Too bad we can’t ask them to wear sandwich boards that say “I am an executive at AIG and I’m not a team player”. Yes I know that won’t solve anything, but it would make me feel a tiny bit better.

IRS Presents Credit for Retirement Savings Contributions

If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit.
The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and income of:
Single with income up to $26,500
Head of Household with income up to $39,750
Married Filing Jointly, with incomes up to $53,000
To be eligible for the credit you must be at least age 18, not a full-time student, and cannot be claimed as a dependent on another person’s return.
If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 or up to $2,000 if filing jointly. The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.
When figuring this credit, you generally must subtract the amount of distributions you have received from your retirement plans from the contributions you have made. This rule applies for distributions starting two years before the year the credit is claimed and ending with the filing deadline for that tax return.
The Retirement Savings Contributions Credit is in addition to other tax benefits which may result from the retirement contributions. For example, most workers at these income levels may deduct all or part of their contributions to a traditional IRA. Contributions to a regular 401(k) plan are not subject to income tax until withdrawn from the plan.
For more information, review IRS Publication 590, Individual Retirement Arrangements, Publication 4703, Retirement Savings Contributions Credit and Form 8880, Credit for Qualified Retirement Savings Contributions. The publications and form can be downloaded at IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676).
Links:
Form 8880, Credit for Qualified Retirement Savings Contributions (PDF 46K)
Form 1040, U.S. Individual Income Tax Return (PDF 176K)
Form 1040A, U.S. Individual Income Tax Return (PDF 136K)
Publication 590, Individual Retirement Arrangements (IRAs) (PDF 449K)
Tax Topic 610