General Principles Flashcards
End Mode Scenarios
401k Deferrals
Profit-Sharing Contributions
Bond Interest
Mortgage Payments
Checking Account in Emergency Fund
Subtract one month’s expenses if checking account is greater
Begin Mode Scenarios
- College Tuition
- Retirement Needs
- Family Needs (*due to death or emergency)
PLUS grant
Non- need based, anyone may apply. Can borrow all costs of education and living expenses minus financial aid
Perkins Loan
College decides need; $4,000/yr undergrad or grad, up to $20,000
Lifetime Learning Credit
20% of first $10,000 (Max $2k)
Undergrad or Grad school expenses
Can be used to improve job skills, no degree necessary
MAGI $110,000-130,000
No felony drug restriction
American Opportunity Credit
$2,000 and 25% of next $2,000 tuition, fees, and course material (First four years of college)
OR
For AGI deduction of $4,000 MAGI
Phaseout $160,000-180,000 MFJ
Coverdell ESAs phaseout and key traits
MAGI $95,000-110,000 single
$190,000-220,000 MFJ
$2,000 contribution child below 18; used for all education up to age 30
All elementary and secondary school types covered, including: uniforms, transportation, equipment and supplies, after school programs
“PooriSh” loans and grants
Pell, Perkins, Supplemental Education Opportunity Grant, Subsidized Stafford Loans
Child support taxability
Non-taxable to payee and non-deductible by payor
HIPAA
For people switching employers:
No preexisting conditions exclusion if covered by former employer’s group health for >12 mo’s and less than 63 days elapsed between changing employers
Chapter 7 exemptions
- homestead
- limited personal property
- wages due to head of household or dependent (contributes half of support)
- limited amount of equity in motor vehicle
- pension and retirement plan rights
- cash value of life insurance/proceeds of annuities
- disability benefits/unemployment/workers comp
- property held Tenants by entirety
- IRA (Roth) assets up to $1MM
Chapter 7 means testing
Net Income $10,000 for 60 months
Between $6K-10K, net monthly income
Lost and Stolen Credit Cards Limit of Liability
$50 per card
Debt Management Ratios
PITI
