European Stars and Stripes (Newspaper) - January 15, 1992, Darmstadt, Hesse                                Page 18 a the stars and Stripe Money matters wednesday january 15, 1992loan scam sweeping u.s., officials say Washington a overburdened with debt want a fast loan of $2,000 to $20,000? beware. A loan scam spreading across the country is ready to suck you in officials say. Its an Advance Fec loan operation that requires applicants to  $250 or More up front for loan Money that brokers Promise will be in the mail within Days. The scams a May be growing to epidemic Levels and a have infiltrated virtually every state a said Janet Steiger chairman of the Federal Trade commission. Her remarks at a news conference preceded a meeting of her Agency the Fri postal inspectors state officials and consumer associations to set up a nationwide information sharing system to Root out the scam artists. Although individual states have been investigating complaints of these loan schemes on their own it was a relatively recently that we All discovered it was a nationwide problem Quot Steiger said. Typically such operations put up posters or run newspaper or radio ads offering fast Loans even to people who have no credit rating or bad credit. Consumers Are told to Call an 800 or 900 Telephone number to apply. Something like this usually follows a the loan a broker Quot on the line asks the consumer a few questions about finances and usually approves the loan in the same Call. A the broker then asks for a a a processing fee to be sent by overnight delivery and says the loan Money will come in a week or two. A if the consumer Calls Back in a week or so he a told the loan is being proc Essed but will be coming soon. A sometimes the consumer later gets an official looking letter from a supposed lending institution denying the loan. A further Contact with the broker is fruitless. The operation has disconnected its phone and moved on. Barry Reid of Georgia a consumer affairs office where the problem seems to be worse said one operator was going House to House in his pickup truck collecting $495 fees for Loans that never materialized. Susan Grant of the National association of consumer Agency administrators said another person told a loan applicant to meet him in the parking lot of a shopping mall with $200 As an Advance fee. Barry Cutler head of the it cd a consumer Protection Bureau said the operators often ask Consumers to use private overnight express delivery systems As a Way of circumventing Federal mail fraud Laws. A georgians have lost hundreds of thousands of dollars Quot Reid said. He added that scam artists a Are preying on the downturn in the Economy. People Are vulnerable  action has been taken against these Advance fee loan schemes in Georgia Pennsylvania Illinois new Jersey and Arizona. Last summer Florida enacted a Law making the practice a felony. Legislation has been introduced in Congress that would make it a Federal offence. Both state and Federal officials said Consumers Best Protection is to be Alert and sceptical. A if it sounds too Good to be True it probably is a said Sarah Hargrove Secretary of banking for Pennsylvania. Lower income Rural families gaining Home loan assistance Washington apr the agriculture department has released $1.3 billion in direct Loans and $330 million in loan guarantees for the Purchase of single family residences by Low and moderate income families in Rural areas. A the immediate availability of these funds will help Many families throughout Rural America who want to buy a Home a said agriculture Secretary Edward mad Igan. A Many of the Homes financed by the Farmers Home administration Are newly constructed and will provide needed jobs in the Home building and construction  the department is speeding release of the funds in response to a directive from president Bush that Federal agencies accelerate delivery of program funds that provide opportunities and assistance to the american people Madigan said in his recent announcement. The direct housing Loans Are made to Rural residents who Lack adequate housing and whose incomes Are below 80 percent of the area median or Middle income. The housing loan guarantees enable private lenders to offer Loans with no Down payment to moderate income Rural residents. A local Lender makes the loan and the Farmers Home administration guarantees the Lender against 100 percent of a loss up to 35 percent of the loan amount and 85 percent of a loss on the remaining 65 percent. The loan guarantee program is for Rural residents with incomes 80 percent to 100 percent of the area median. Gaining an Edge in Hunt for  sales Dettra Flag co. Is in the red these Days thanks to the hot Market for soviet flags. Here worker Becky Thorne trims the edges of the familiar Hammer and sickle Flag of the now defunct soviet Union. During the persian Gulf War a year ago the company based in Oaks pa.,  make american flags fast enough to cover the orders. However the wave of patriotism passed and soviet flags have not become the hottest item. By the Baltimore evening Sun have you made your annual new years resolutions to lose weight Stop smoking exercise regularly spend More time with the family Etc.? that a Fine but How about your career Here partly from National business employment weekly Are resolutions to help you gain a competitive Edge in the Job Market a sign up for a College course to improve professional skills even if your company wont  the Bill. A update your resume so you re prepared for Layoff or Opportunity. And done to Tell Only what you be done Tell How Well you did it. That a what employers look for. A get involved in a professional organization subscribe to a new business newspaper or Magazine read Trade publications and attend seminars on new developments in your Field. A Volunteer for a project where you work head a committee write an article for a local newspaper or Trade publication offer to make a presentation at a chamber of Commerce Myca Owca Etc. A keep up your networking with regular lunches letters and phone  guide by Bill Doyle q. On dec. 31, 1991, i had $36,259 in my individual retirement account $5,800 of that total was non deductible contributions i had made. I am Over 59vi years old and withdrew $5,253 from the Ira to Purchase an automobile on Jan. 12, 1991. Logic would indicate i should not have to  any Federal income tax on the $5,523 for 1991, or on any withdrawal up to $5,800. However i Learned that some Peculiar formula is involved whereby 1 must  income tax on most of the $5,523. I am in the 28 percent Federal income tax bracket. How much extra tax will i owe on the $5,523? do i have away out a. You have no Way out. You re stuck for extra tax of $1,236 a unless the taxable income resulting from your Ira withdrawal kicks you into the 31 percent Federal income tax bracket in which Case you will owe More. But there s no Way for me to calculate that from the numbers you Supply. Calling the formula for this a a Peculiar is a mild description and you can blame Congress for a provision in the tax Reform act of 1986, which went into effect in 1987. From 1983 through 1986, every working person could put $2,000 into an Ira and deduct the contribution from his or her Federal income tax return. No tax was paid on those deductible contributions but tax is due when that Money is withdrawn. As of 1987, deductions for Ira contributions were pared Back for some people and prohibited for others depending on their total income and whether or not they participate in other retirement programs. That did no to Stop you and others from making non deductible Ira contributions. And withdrawals of non deductible contributions Are not taxable. But Here s the kicker. Ira withdrawals Are counted As being proportional a part from your non deductible contributions and the rest from deductible contributions and earnings your Ira has accumulated the latter being Lilly taxable. Your $5,800 of non deductible contributions amounted to 16 percent of the $36,259 in the Ira. So when you withdrew $5,523, $4,412 a or 84 percent of the withdrawal a became taxable. At 28 percent the tax on the $4,412 comes to $1,235,51. Rounded off to the nearest Dollar that s $1,236. Q. A family member of the older generation who is very knowledgeable about stocks and Bonds does not understand when i try to explain that because no tax was paid when i made Only deductible Ira contributions All monies received when i make Ira withdrawals will be fully taxable a with no exclusion for return of capital. Am 1 wrong if so please set me straight. A. You re Correct. Your elderly relative probably Hinks the tax treatment of an Ira is similar to that on the Purchase and later Sale of a Security. With the latter the Price you  is your a a basis Quot Cost for tax purposes Ais Price you receive Isyl or proceeds from the Sale. The difference Between the two prices is a taxable capital gain or a capital loss and you done to  tax on the amount you paid for the Stock or Bond. Q. My wife and i will retire in three years on teachers pensions of approximately $65,000 annually. At the present time we have $94,000 in investments allocated Stockin Rene it  Mutual fund holding i a balanced Mutual fund holding to incl  m a government Bond Mutual fund and 30 percent in annuities. Antrnhco165 monthly to growth fund in an Ira and $450 monthly to the annuity in a 403fb p a Quot what suggestion do you have for re Al locating these assets and should we continue Makine the monthly contributions a Unnue maxing Don t8jblr ? she than m0st pm be your u any Drasic changes. By All Means keep socking Money into tax deferred retirement plans a fiord to do so. My Only suggestion of set sssmsstss0�?� from ,1,e 8�w"�?~ of Ted cd King features