Where Imagination Brings Software to Life

1997 Press Releases

New Software Clarifies the "Roth IRA Alternative"

Albuquerque, November 1, 1997: Earlier this year, Senator William V. Roth, Jr., championed a new Individual Retirement Account as an integral part of The Taxpayer Relief Act of 1997 that will help millions of Americans reach their retirement income objectives. Dubbed "The Roth IRA," this retirement account differs from its twenty-two-year-old cousin in the following ways:

- Contributions are not tax deductible

- It is exempt from age 70½ minimum income requirements

- Retirement income is free from Federal income taxes.

ImagiSOFT’s Roth IRA Alternative software will help accountants, financial planners, and representatives of mutual funds, banks, credit unions, and life insurance companies answer two questions for their customers:

"Will the sacrifice of paying taxes to convert my present IRA to a Roth IRA be sufficiently offset by an increase in after-tax retirement income?"

"Which makes better financial sense: a tax-deduction now, or tax free retirement income later?"

Intelligent answers to these questions differ for each person, depending on their age, when retirement income starts, the amount, today’s tax bracket, the tax bracket after retirement, and the rate of return one expects to earn. The Roth IRA Alternative weighs the compound effect of converting to a Roth IRA and clarifies the choices open to IRA customers.

A single-user license to the Roth IRA Alternative is $49.95. Annual updates are $19.95. Company licenses are also available.

Originally incorporated under the name Specialists in Financial Planning, Inc. in 1982, ImagiSOFT has developed software for more than thirty financial institutions.

ImagiSOFT Announces New Version of its
403(b) Maximum Exclusion Allowance Calculation Software

Albuquerque, July 1, 1997: In April 1997, ImagiSOFT, Inc. contracted with The Legend Group in Palm Beach Gardens, Florida, to enhance its Windows Maximum Exclusion Allowance software. "We are impressed with The Legend Group’s expertise in this field," says Michael Prestwich, ImagiSOFT's president. "Legend’s Dawn Robins and Jay Marmer have over thirty years combined experience in 403(b) tax shelters. We believe that our combined expertise will make our MEA 98 software the most accurate, yet easiest to use, in the industry."

Nearly fifty years ago, congress enacted section 403(b) of the Internal Revenue Code, which allows employees of public schools and other 501(c) nonprofit organizations to exclude a portion of their income to purchase a retirement annuity. Since then the regulations for 403(b) "Tax Sheltered Annuities" have changed many times, the most recent being with the passage of the Small Business Job protection Act of 1996. Unlike the formula for 401(k) plans, the maximum amount one can set aside into a 403(b) plan is based on dozens of complicated formulas and rules. The IRS imposes severe penalties on those who contribute too much into a 403(b) plan, which is why software such as ImagiSOFT’s MEA 97 and forthcoming MEA 98 is necessary.

ImagiSOFT developed a DOS Maximum Exclusion Allowance calculator in 1989. This software has since been converted to Windows and expanded for church employees, employees with 457 plans, and employers with ERISA 403(b) plans. "In addition to the changes enacted by congress which go into effect starting on January 1, 1998, MEA 98 adds significantly more information to our State Teacher’s Retirement System database," Prestwich says. "Users will find the new version easier to use because several fields which were previously required are now calculated by the software."

The beta release of MEA 98 is available as a free download from ImagiSOFT’s World Wide Web site at http://www.imagisoft.com. This beta edition will run until October 1, 1997. At this time the gold version of MEA 98 will replace MEA 97.

A single user individual license to MEA 97 is $39.95 ($49.95 after October 1, 1997 when MEA 98 is released). Annual updates are $19.95. Company licenses are also available. To date, American Life and Casualty, Beneficial Standard Life, CU Life, Delta Life and Annuity, Great American Reserve Life, Fidelity Security Life, The Legend Group, Life Insurance Company of the Southwest, Waddell and Reed Financial Services, and Zurich-Kemper Funds have purchased company licenses.

Originally incorporated under the name Specialists in Financial Planning, Inc. in 1982, ImagiSOFT has developed custom software for over thirty life insurance companies.