THE DETROIT JEWISH NEWS

Taxes and Your Future 1

Passover a Time for Reflection

By ROSE HALPRIN

As a general guideline you
should know that the
come tax law does not have
an automatic exemption for
the distribution of benefits
from a pension plan.
Chances are you'll be taxed
on the portion of the pen-
sion contributed by your
employer once you've-re-
tired. However, take heart.
That taxation rate after re-
tirement is generally lower
Editor's Note: Guidance than while you're working.

on important problems
provided by Jewish Wel-
re Federation-United
.wish Charities Endow-
ment Fund Tax Advisory
Committee. Professional
advice about issues dis-
cussed in these columns
should be secured from
your attorney or an estate
planning adviser. Ques-
tions of general interest in
these matters should be
addressed to "Taxes and
Your Future," care of the
Jewish News, 17515 W.
Nine Mile Road, South-
field, 48075.

It's assumed that the
individual's income will be
smaller after retirement
than during the working
years, and therefore the
"deferred income" will be
taxable at a lower rate.
You pay the income tax on
a portion of the pension,
since it was deducted at
the time you made your
contributions.

Your question about es-
tate taxes is answered in
Section 2039(c) of the Inter-
nal Revenue Code. That sec-
tion says proceeds of quali-
fied pension plans
(attributable to the employ-
The passage of the Em- ers' contributions) are ex-
ployee Retirement Income empt from tax as long as the
Act of 1974 made headlines beneficiary is an individual
and made me realize that it and not the estate of the em-
might affect my own plans ploye. So if you name a per-
for retirement income. The son
as beneficiary, the pro-
new rules about pensions ceeds
are tax exempt.
are confusing, to say the
If the prodeeds are pay-
least. I'm going to seek pro- able
a properly drawn
fessional help with my plan- trust, to
they
won't be taxable
ning, but first I'd like to ask
the time of the employe's
some simple questions. Will at
or the spouse's later
I have to pay income tax on death
death.
They'll pass to the
my pension, or is it, like
or for the benefit
Social Security, income tax children,
of
the
children,
without any
free? And what happens to federal estate tax
on them.
the pension money should it However, the proceeds
become part of my estate, which are attributable to
say as insurance? Is it sub- your contributions as an
ject to federal estate tax? employe are not exempt
What effect will this have from federal estate taxes.
on my charitable contribu-
Depending upon your en-
tions?
tire financial picture, it's
Those seem like simple conceivable
you'd be able to
questions, but have complex maintain your
working-
answers. You're right. Pro-
level of charitable con-
fessional consultation is years
This would fur-
best in every case, and we tributions.
ther
reduce
your outlay for
urge you seek advice.
taxes.

Israel Transmitters
Remain Inoperative

TEL AVIV (ZINS) — Is-
rael has powerful radio
transmitters capable of
reaching every corner of the
world, but these transmit-
ters remain inoperative, ac-
cording to the Hebrew daily
Davar, organ of the Labor
Party.
The paper says that the
instruments remain silent
-,ause of opposition on the
art of the technical crews
of Israel's official radio sta-
r' m.
The report quotes Victor
Groiveski, one of the direc-
tors of Israeli Radio, as well
as Zeev Stockheim, one of
its chief engineers, as say-
ing that Radio Israel could
solve most of the problem of
Israel's need for counter-
propaganda to offset the
hate campaign of the anti-
Zionists in general, and of
the Arab propaganda ma-
chine in particular.
They further declared
that this means is far more
effective that the sending of
hundreds of emissaries
abroad.

There was mention of a
qualified pension. plan in
our answer about the es-
tate tax. We'd suggest that
you check out your own
pension plan when you
consult with a profes-
sional.

For information, contact
C. Kenneth Sarason, endow-
ment secretary, at the Fed-
eration office, 965-3939.

Africa May Build
Israeli Vessels

LONDON A South Af-
rican shipyard is to build
patrol boats under license
granted by Ramta, the Is-
rael Aircraft Industries sub-
sidiary which manufactures
Dabur vessels, according to
the latest issue of the Bri-
tish journal -"Flight Interna-
tional."
The shipyards, Sandhoek-
Austral of Durban, will
equip the boats with Gabriel
Mark II long-range sea-to-
sea missiles, made by an-
other IAI subsidiary.
The shipyard will also
equip six corvettes it is
building with Gabriels, the
magazine says.

A Seven Arts Feature

The memory of the ex-
tended family at the seder
table, is strong within me at
this time of the year.
In the chronicle of Jewish
celebrations, the Passover
has its own very special as-
sociations. It is, perhaps
more than any other holi-
day, a family affair, in
which the youngest and the
oldest has his appointed
part to play.
In the Hagada, we recall
slavery, and the.march to
freedom, the wandering in
the desert to prepare a gen-
eration for the tasks of free-
dom, for the deepening of
religious commitment, and
the strains of founding a
new society.
Strange, in a way, that
aftei 2,000 years, the same
problems face us both here
and in Israel. The tasks of
freedom inevitably change
from time to time, though
its goals are constant. The
achievement of a society

El' Al to Get
4th Jumbo Jet

JERUSALEM — El Al is
to receive its fourth jumbo
jet on April 2, and the jet
has already been ihcluded in
the company's flight of
schedules for next month.
A company spokesman
said that all first-class
places on El Al's Boeing 707
and 720 airliners were can-
celled recently because of
the steadily increasing de-
mand for bookings.
The abolition of first-
class places will free 5,000
extra seats per month,
which is equivalent to add-
ing an airliner to the compa-
ny's fleet.
The company reported a
22 percent increase in book-
ings on all routes last
month, compared with the
corresponding period last
year.

dedicated to the highest
teachings of our forebears,
is still an unfinished task.
Because Israel is not yet
at peace, we are engrossed
by the dangers that it faces,
and the political uncer-,
tainty which must be re-
solved.
, But deep within the holi-
day celebration, lie the un-
changing eternal truths that
should give us guidance and
strength: the obligation of
each individual to seek the
collective good; the responsi-
bility of each to contribute
according to his capabilities
and potential; the respect of
human values; the concept
of "Klal Israel" and the com-
mitment to safeguard free-
dom which is part of its so-
cial ethics.
Underlying the search for
solution of Israel's problems

is the commitment for the
strengthening of those val-
ues which lie at the base of
our nation, religious, social
and cultural heritage.

April 9, 1976 21

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A Happy Healthy
Passover
To All

Ben & Harry Kosins

FINE UTIREI, FOK 11E\

• r Passover.

Look for this Kosher
identification on the
caps of Faygo 16 oz.
bottles. We have five
Sugar Free flavors that
are Kosher for Passover.
All in pint bottles.
All delicious.

Israel Studying
Turboprop Aircraft

NEW YORK — High-
speed turboprop business
aircraft is under study by
Israel Aircraft Industries as
a possible addition to its
product line.
An agricultural aircraft
also was studied, but work
on it has been halted. Stud-
ies also are under way on a
second-generation business
jet based on the present
Westwind, incorporating a
supercritical wing, accord-
ing to Aviation Week.

Five Delicious
Free Faygo Flavors.

Red Pop R6ot Beer Frosh
Pineapple/Orange Passion Fruit Punch

"Prepared under, the supervision of the Council Of Orthodox Rabbis of Greater Detroit'

MANUFACTURERS BANK

extends best wishes to all
for a happy, joyous
Passover

