Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, February 18, 1991 TAG: 9102160017
SECTION: BUSINESS PAGE: B/6 EDITION: METRO
SOURCE: Mag Poff
DATELINE: LENGTH: Long
When I retired a year ago, I began withdrawing money from my Individual Retirement Account. I would like to stop taking money during the time I return to work so that I can avoid taxes on my retirement income while I am earning a salary. I am receiving conflicting advice on whether I can stop withdrawing from my IRA on a temporary basis.
A: You can return to your nursing career temporarily without any fear of paying extra taxes because of your patriotism.
IRA managers at two banks, Betty Stanley of Dominion and Cindy Ellis of Central Fidelity, agree that you can handle your account any way you want between the ages of 59 1/2 and 70 1/2.
Prior to reaching the mandatory withdrawal age of 70 1/2, Stanley said, you can change the amount you take out, stop withdrawals completely and pick up benefits at any time.
If you go back to nursing, you should contact the trustee of your IRA to suspend payments.
\ Next time, hang up
\ Q: I have received at least four phone calls from a man who claims to represent the International Trade Guarantee Bank of East Smithfield in London. He wants me to send money to invest in Deutsche marks, claiming that the value of the dollar will fall so I can make a lot of money selling back the German currency later. The man once promised to fax printed information, but he never did even though he dispatched Federal Express to pick up my money.
I am not going to send the man any money, but I wonder how many other people he is calling in this area. I think people should be warned if this is a fraud.
A: Tom Wong, head of the international banking department at Dominion Bankshares Corp., consulted his directories and found no listing for any such company in London. Wong said Great Britain permits nationwide banking, so banks there tend to be large and very well known, such as Barclay's.
It is true that the Deutsche mark has been rising against the dollar lately, Wong said. But you can play the risky game of currency speculation without entrusting your money to a stranger who makes cold calls you from out of town.
\ Cash only for IRAs
\ Q: My husband owns 200 shares of stock in a well-run little country bank. In book-value terms, it is worth about $22,000.
We are farmers and usually too poor to be able to make IRA contributions. Is there any mechanism by which we could shift this stock over gradually into our IRAs? I am 51; he is 60.
A: No, you must contribute cash to an Individual Retirement Account.
Cindy Ellis, who supervises the product for Central Fidelity Bank, said the law prohibits transfer of existing assets into an IRA.
You might consider selling some of the bank stock and investing the proceeds of the sale. But the market for the stock is probably limited and, in light of today's market conditions, the stock may sell below book value.
As farmers, you may have another problem. Ellis said farmers and other self-employed persons must show an operating profit on their federal income tax forms before they can invest in an IRA.
\ These companies rate
\ Q: I have a deferred annuity with American Life and Casualty Insurance Co. of Fargo, N.D. Since I have read in the paper that many insurance companies seem to be in difficulty, I am wondering how safe it is. I also have a deferred annuity with Union Security Life Insurance Co. of Atlanta and would like to know the rating of this company also.
A: Best's Insurance Reports lists American Life and Casualty Insurance Co. with an address in Des Moines, Iowa. Union Security life is based in Wilmington, Del., but has executive offices in Atlanta.
Best's gives the companies identical ratings. Both are A or excellent, the second highest rating. In each case, 97 percent of their long term bonds are of investment grade.
\ Frame this note
\ Q: Could you please give me any information on the attached bank note? Is it of value? Where could I take it to check on it?
A: You sent a photostatic copy of a promissory note issued by the Bank of the United States at Philadelphia Dec. 15, 1840. It is signed, dated and numbered by hand.
The Standard Catalog of World Paper Money at the Roanoke Public Library shows nothing like this note. That book, however, recommends a more complete reference work on the subject is "Standard Catalog of National Bank Notes." It is not available locally but it issued by Krause Publications, 700 E. State Street, Iola, Wisc. 54990.
The period of 1836 to 1863 was the most turbulent in American banking history. There was no central bank or national banking system. Banks, which had no government supervision, often opened without capital or suitable management. Many failed. Most banks issued their own notes to fill the national void, and notes like the one you have probably circulated much like money.
by CNB