Tax season is nearly upon us and in response to a growing number of tax questions, IRA.com will be offering access to an online tax return preparation tool.

This new product gives you the benefit of over 500 pages of tax help from one of the most respected tax research firms in the country.

Plus, you get an easy, step-by-step way to prepare and file your returns online. You can file personal federal and state returns.

All for one low price. No hidden, extra electronic filing fees!

Coming Soon!

Profit-Hungry Companies Take Ax to 401(k) Matches
Pensions & Investments [www.pionline.com], Vol. 29, No. 25, Pg. 3, 12/01; Jacobius, Arleen.

Several companies are eliminating or slashing their 401(k) employer match in an effort to save money. General Motors, for example, is cutting its company contribution to 60 cents from 80 cents for each dollar an employee contributes, for up to 6% of the participants' pay, while DaimlerChrysler will suspend its matching contribution in January 2002. Several other firms are restructuring their matching contributions to make them more discretionary, and others are adding profit sharing on top of fixed company matches. New Jersey's Panasonic, for instance, has restructured the match in its 401(k) plan to include a 2% fixed contribution on the first 5% of pay and a 3% annual discretionary contribution by the company. Meanwhile, Visteon's suspension of its company match program is expected to save $25 million in 2002.

Is Making Extra Payments as Good as Refinancing?
Miami Herald [www.miami.com/herald], Pg. 10H, 11/25/01; Bruss, Robert J.

While today's favorable interest rates may tempt many homeowners to refinance their mortgage, others are turned off by the inconvenience and complicated nature of the process. These borrowers instead may choose to save money by making extra payments on their home loan in order to pay it off early-which can yield thousands of dollars in interest savings. The additional payments--whether it totals $100 or $1,000--essentially is a financial investment at whatever interest is tied to the mortgage. Prepayment on a home loan at 7 or 8 percent allows the homeowner to "earn" that amount on their dollars--which is significantly better than other investment vehicles, such as a CD, which might yield only 2 to 4 percent. While many lenders charge a one-time fee to set up a biweekly mortgage schedule plus an annual fee for the automated electronic transactions, disciplined homeowners can make the extra payments on their own simply by dividing the monthly mortgage note by 12 and adding that amount to their remittance. They should be sure to notify the lender that extra money should be applied to principal only, and they must make sure they will not be saddled with prepayment penalties from their lender. While prepayment is a savvy move for homeowners whose mortgage carries interest of 7 or 8 percent, it is less effective for lower- priced loans. After tax deductions on interest are considered, the true cost of loans at 5 to 7 percent interest is really only about 3 to 5 percent; at such bargain rates, the rationale for paying off the mortgage early is lost..

When Layoffs Loom, Decisions On 401(k) Plans Become Crucial
Washington Post [www.washingtonpost.com], 12/02/01; Hinden, Stan.

Workers who lose their jobs need to know what to do with the money they have saved in their 401(k) plans, writes Stan Hinden for the Washington Post. For people who are suddenly laid off, financial advisers say they should resist tapping into their 401(k) savings to pay bills. In this scenario, advisers recommend that people first look into taking out a home-equity loan or borrowing against their life insurance to pay bills.

Survey: Obligations Keep Boomers From Retirement
National Underwriter (Life and Health Financial Services Edition) [ www.nunews.com/lifeandhealth ], 12/04/01.

In addition to unprecedented levels of debt, baby boomers who already feel committed to financial obligations to both children and aging parents can look forward to more of the same in retirement, according to a recently released survey from Allstate. Allstate Financial's "Retirement Reality Check" noted that more than one in three baby boomers will be financially responsible for children or parents during retirement. Tom Wilson, president of Allstate Financial, said, "Our research paints a very serious picture as far as the many obligations tomorrow's retirees will face."

U.S. Internal Revenue Service
www.irs.gov

During tax season, remember that the IRS web site provides many answers to your tax questions and offers convenient access to numerous tax forms and publications. The substantial list of Frequently Asked Questions covers most of the basics in clear, succinct language and provides easy links to download related forms and publications. You'll find information about your local tax support office and, of course, filing electronically.

DISCLAIMERS

(c) 2001 Copyright Claimed, Internet Retirement Alliance.

Abstracts (c) Information, Inc., Bethesda, Maryland 301-215-4688. Redistribution is prohibited.

The material and information herein is obtained by from a wide variety of sources. The Internet Retirement Alliance (IRA.com) believes this information is accurate, current, and authoritative, but it may not be. The Internet Retirement Alliance (IRA.com) provides the information "as is" without any express or implied warranties.

The Internet Retirement Alliance (IRA.com) does not provide legal, accounting, investment, or other professional services. If the reader requires legal, accounting, investment, or other expert assistance, the services of a competent professional person should be sought.