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Suggest - Tax Magic: How To Turn Taxable Income Into Tax-Free Income
Believe it or not, there are ways to convert taxable income
into non-taxable income, without any fear of an IRS audit.
Here's one of my favorites. It's been part of our tax code for over 30 years, yet many still don't take advantage
Here's one of my favorites. It's been part of our tax code for over 30 years, yet many still don't take advantage
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
of it.
What am I talking about?
The IRA -- Individual Retirement Account.
Now, before you say, "Oh, I know all about that one; what's so great about an IRA?", give me 10 minutes to explain 3 new benefits to the IRA rules that you
What am I talking about?
The IRA -- Individual Retirement Account.
Now, before you say, "Oh, I know all about that one; what's so great about an IRA?", give me 10 minutes to explain 3 new benefits to the IRA rules that you
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ay not realize.
BENEFIT #1: How To Avoid Tax Rather Than Postpone Tax
First, did you know that there are now 2 kinds of IRA's available?
The so-called Traditional IRA is the one that first came out way back in the 1970's.
But ther
BENEFIT #1: How To Avoid Tax Rather Than Postpone Tax
First, did you know that there are now 2 kinds of IRA's available?
The so-called Traditional IRA is the one that first came out way back in the 1970's.
But ther
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
's a newer version of the IRA that's only a few
years old -- it's called the Roth IRA. And the difference
between these 2 IRA's is huge.
Traditional IRA contributions are tax-deductible, resulting in immediate tax savings. The growt
Traditional IRA contributions are tax-deductible, resulting in immediate tax savings. The growt
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
of those contributions
is also tax-sheltered while the funds remain in the account.
But eventually all tax-deductible Traditional IRA contributions, as well as the growth of those contributions, will be subject to income tax when t
But eventually all tax-deductible Traditional IRA contributions, as well as the growth of those contributions, will be subject to income tax when t
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
e money is withdrawn
from the account.
In other words, Traditional IRA's offer the opportunity to temporarily postpone taxes.
In contrast, the Roth IRA offers the opportunity to permanently avoid taxes. With a Roth IRA, you don't t
In other words, Traditional IRA's offer the opportunity to temporarily postpone taxes.
In contrast, the Roth IRA offers the opportunity to permanently avoid taxes. With a Roth IRA, you don't t
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
ake
a deduction for your contributions; instead, you make
a contribution with "after-tax" dollars.
Whatever you put in not only grows tax-free, but can also be withdrawn tax-free.
Here's an example to illustrate:
If you invest $2,
Whatever you put in not only grows tax-free, but can also be withdrawn tax-free.
Here's an example to illustrate:
If you invest $2,
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
00 per year for 20 years into a Roth IRA,
you will have invested a total of $40,000. Now if that Roth
IRA earns an average of 10% per year, that $40,000 will
grow into $126,005.
Now comes the fun part: Assuming the IRA has existed
Now comes the fun part: Assuming the IRA has existed
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
or at
least 5 years and you are at least 59 ? years old, you can
withdraw the entire $126,005 tax free.
In contrast, if this money had been invested in a Traditional IRA, the entire $126,005 would be subject to income tax as it is
In contrast, if this money had been invested in a Traditional IRA, the entire $126,005 would be subject to income tax as it is
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
ithdrawn.
The $86,005 of growth is magically converted from taxable income to non-taxable income. Assuming you are in the 15% federal tax bracket, that's a savings of $12,901. Add any state income tax, and you could save over $15,
The $86,005 of growth is magically converted from taxable income to non-taxable income. Assuming you are in the 15% federal tax bracket, that's a savings of $12,901. Add any state income tax, and you could save over $15,
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
00 in
taxes.
BENEFIT #2: Take An Extra 3 ? Months To Fund Your IRA
The deadline for contributing to your IRA is April 15 of the year AFTER the year for which the contribution made.
So for Year 2005, you have until April 15, 2006 t
BENEFIT #2: Take An Extra 3 ? Months To Fund Your IRA
The deadline for contributing to your IRA is April 15 of the year AFTER the year for which the contribution made.
So for Year 2005, you have until April 15, 2006 t
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
o put money into your IRA.
If you've already invested the maximum (more about that in a moment) by December 31, 2005, then you're done. No more money can go into the IRA for 2005.
But if you haven't maxed out your IRA, you have unt
If you've already invested the maximum (more about that in a moment) by December 31, 2005, then you're done. No more money can go into the IRA for 2005.
But if you haven't maxed out your IRA, you have unt
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
l
April 15 to do so.
Which brings me to . . .
BENEFIT #3: The Maximum Contribution Amounts Have Increased
For many years, the most you could put into an IRA was $2,000. Now, the maximum is $4,000 (assuming you have at least that
Which brings me to . . .
BENEFIT #3: The Maximum Contribution Amounts Have Increased
For many years, the most you could put into an IRA was $2,000. Now, the maximum is $4,000 (assuming you have at least that
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
uch earned income from wages or self-employment
income).
And if you are over 49, you can put in another $500, bringing the total maximum to $4,500.
A married couple, both age 50 or older, can put a whopping $9,000 per year into a I
And if you are over 49, you can put in another $500, bringing the total maximum to $4,500.
A married couple, both age 50 or older, can put a whopping $9,000 per year into a I
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
A. Not too shabby, eh?
One final note about these Roth IRA rules: For married people, you can only contribute the maximum of $4,000 or $4,500 if your combined income is less than $150,000.
If you are single or head of household, yo
One final note about these Roth IRA rules: For married people, you can only contribute the maximum of $4,000 or $4,500 if your combined income is less than $150,000.
If you are single or head of household, yo
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
can contribute
the maximum if your income is less than $95,000.
For most middle-class folks looking for a perfectly legal way to permanently avoid tax (rather then merely temporarily postpone tax), the Roth IRA fits the bill.
Now
For most middle-class folks looking for a perfectly legal way to permanently avoid tax (rather then merely temporarily postpone tax), the Roth IRA fits the bill.
Now
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
comes the hard part -- how to actually implement this
tax avoidance strategy.
"We'd like to save as much as we can for our golden years. But $9,000 a year? It's hard to put aside that kind of money. We need every dollar we make ju
"We'd like to save as much as we can for our golden years. But $9,000 a year? It's hard to put aside that kind of money. We need every dollar we make ju
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
t to pay the bills."
If that's your situation, I'm not going to get up on my "what-do-you-mean-you-can't-save-any-money-for-retirement" soapbox and start preaching at you.
I will say this: You've got to start somewhere, and you've
If that's your situation, I'm not going to get up on my "what-do-you-mean-you-can't-save-any-money-for-retirement" soapbox and start preaching at you.
I will say this: You've got to start somewhere, and you've
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
ot to start saving something, don't you?
People who have a problem saving for retirement usually have a budgeting problem. For an excellent resource on budgeting, I highly recommend the Budget Stretcher web site:
http://www.homemone
People who have a problem saving for retirement usually have a budgeting problem. For an excellent resource on budgeting, I highly recommend the Budget Stretcher web site:
http://www.homemone
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
help.com.
This site offers a free budget system complete with simple forms and worksheets to help you figure out how to put some money aside for a Roth IRA or other savings plan.
Take advantage of this resource and get started today
This site offers a free budget system complete with simple forms and worksheets to help you figure out how to put some money aside for a Roth IRA or other savings plan.
Take advantage of this resource and get started today
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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