Financial and Insurance Guide

A SPECIAL SECTION OF THE DENISON BULLETIN AND DENISON REVIEW | FRIDAY, FEBRUARY 22, 2013

PAGE 2 FEBRUARY 22, 2013FINANCIAL & INSURANCE GUIDE

Call me today

to see how I

can make it

simple to help

you save for

retirement.

1-FINANCIAL (FINANCIAL 2012-13-FARM BUREAU/ADAM) FM

IRAs Maximized retirement income.Flexibility. Tax advantages.

Securities & services offered through FBL Marketing Services, LLC*, 5400 University Ave., West DesMoines, IA 50266. 877/860-2904, Member SIPC. Farm Bueau Property & Casualty Insurance Company+*,Western Agricultural Insurance Company+*, Farm Bureau Life Insurance Company+*/West Des Moines, IA.+Affiliates *Company providers of Farm Bureau Financial Services A080-ML-1 (1-12)

Auto l Home l Life l Business l College l Retirement

Adam Humlicek204 N. 7th Street

Denison, IA712-263-3157

http://adamhumlicek.fbfs.com

Taxable andnontaxableincome

Most types of income aretaxable, but some are not.Income can include money,property or services thatyou receive.

Following are some ex-amples of income that areusually not taxable:

Child support paymentsGifts, bequests and in-heritancesWelfare benefitsDamage awards forphysical injury or sick-nessCash rebates from adealer or manufacturerfor an item you buyReimbursements forqualified adoption ex-pensesSome income is not tax-

able except under certainconditions. Examples in-clude:

Life insurance proceedspaid to you because of an

insured person’s death areusually not taxable. How-ever, if you redeem a lifeinsurance policy for cash,any amount that is morethan the cost of the policyis taxable.

Income you get from aqualified scholarship isnormally not taxable.Amounts you use for cer-tain costs, such as tuitionand required course books,are not taxable. However,amounts used for roomand board are taxable.

All income, such aswages and tips, is taxableunless the law specificallyexcludes it. This includesnon-cash income frombartering - the exchange ofproperty or services. Bothparties must include thefair market value of goodsor services received as in-come on their tax return.

If you received a refund,credit or offset of state orlocal income taxes in2012, you may be requiredto report this amount. Ifyou did not receive a 2012Form 1099-G, check withthe government agencythat made the payments toyou. That agency mayhave made the form avail-able only in an electronicformat. You will need toget instructions from theagency to retrieve this doc-ument. Report any taxablerefund you received evenif you did not receive Form1099-G.

For more informationand examples, see Publica-tion 525, Taxable andNontaxable Income.

The booklet is availableat IRS.gov or by calling800-TAX-FORM (800-829-3676).

The sooner you start investing,the more likely you are to reachyour long-term goals. Ask meabout State Farm Mutual Funds®.Like a good neighbor, State Farm is there.®

CALL ME TODAY.

Will yourmoneyretire beforeyou do?

1101413.1

Before investing, consider the funds’ investment objectives,risks, charges and expenses. Contact State Farm VP ManagementCorp. (1-800-447-4930) for a prospectus containing this and other

information. Read it carefully. Securities, insurance and annuityproducts are not FDIC insured, are not guaranteed by State FarmBank® and are subject to investment risk, including possible loss

of principal. Investing involves risk, including potential for loss.85-Financial(LongTerm/StateFarm)SS

Trevis Beeck,Agent1335 Broadway

Denison, IA 51442Bus: 712-263-5677

www.trevisbeeck.comMonday - Friday 8:30 - 5:00Saturday - By Appointment

www.DBRnews.com

“Like a good neighbor, State Farm is there.”It’s not just a slogan, but a way of doing business at your local State Farm Agency in Deni-

son. Trevis Beeck and his team will put your needs at the heart of every discussion. Theyencourage you to stop in, say hello, and let the State Farm team put a plan together to makeyour goals and dreams a reality. Pictured above are, from left: Nauj Arguello, Janice Ne-mitz, Trevis Beeck, Toni Farley and Brittany Petersen. Photo by Gordon Wolf

Did you know?Primary mortgage insurance, or PMI, protects lenders in the event that borrowers

default on their primary mortgage by ceasing to make payments, resulting in homesending up in foreclosure. But all borrowers do not have to pay PMI. Typically, homebuyers must make a 20 percent down payment on a home when they buy it. Howev-er, some borrowers are unable to put down 20 percent.

In such instances, the lender will require they pay PMI. This is because the lenderviews a borrower who cannot make an initial 20 percent down payment as a riskierinvestment, and lenders charge PMI in an effort to protect themselves should the bor-rower prove worthy of their skepticism. PMI will be factored into the monthly mort-gage payment, but borrowers should know they do not have to continue paying PMIonce they have paid enough toward the principal amount of the loan. For most, thismeans once they have paid 20 percent of the principal, then they can ask that themonthly PMI payment be removed.

Many borrowers are unaware of this or even forget to ask, but it's within their rightsas borrowers and can save a substantial amount of money over the course of themortgage loan.

FEBRUARY 22, 2013 FINANCIAL & INSURANCE GUIDE PAGE 3

1-Financial-2013(mobilebanking/BankIowa)BS

Making Banking Convenient

Download the free app from iTunes or Google Play today!

THEREALWAYS

Flexible Spending Accounts: A new approach to use it or lose it

submitted by ToddThams, Thams AgencyIf you have money left in

your 2012 flexible spend-ing account, don’t despair!

You may still be able tospend it.

A flexible spending ac-count (FSA) is a beneficialtool for saving money onhealth care, since the ac-count contains pretax dol-lars contributed each payperiod to pay for qualifiedmedical and dental ex-penses. However, one pro-vision of an FSA is thatmoney contributed withina calendar year must bespent within the same yearor it is lost.

December scrambleDecember is a common

time for many people rushto use up leftover funds intheir FSAs while they stillcan. However, thanks to arule change by the InternalRevenue Service (IRS) afew years ago, employershave the option to offer upto 14 and ½ months to usethe funds. Many employ-ers are taking advantageof this extension to theuse-it-or-lose-it provision,allowing employees tospend money from theirFSA until March 15.

The rule change does not

require an extension pastDecember 31; it merelygives employers the op-tion. Be sure to check withus to see what the rulesare.

What to buy at crunch time

When trying to use upFSA funds at the end of theyear, many people used tostock up on over-the-counter (OTC) drugs withtheir excess money. How-ever, due to changes madeby the health care reformlegislation in 2010, OTCdrugs purchased withoutprescriptions are no longerconsidered medical ex-penses that are qualifiedfor reimbursement from anFSA, except for insulin.Thus, you can fill any pre-scriptions you have beforethe year ends, but willneed to find other uses forthe remaining FSA dollars.

Concentrate on usingthose funds for medicalexpenses that you havebeen putting off. If youhaven’t been to the dentistall year, schedule a teethcleaning. If there is ascreening or procedureyou’ve been putting off,use FSA funds for that.You should focus on usingthat money to keep your-

self as healthy as possible.Another smart option maybe a replacement or spareset of eye glasses or con-tact lenses, or an eye examif you haven’t had one re-cently.

Be sure to ask an HRrepresentative for a full listof eligible expenses.

How to plan aheadBecause an FSA is such

a beneficial money-savingtool, it is natural to want tomake the most of the taxadvantage. However, put-ting too much money inthe fund may not benefityou if you have to spend iton unnecessary expensesor fail to spend the moneyat all. The trick is to allo-cate an appropriateamount to your FSA in thefirst place.

Look at your expensesfrom the last few years anddetermine what your aver-age out-of-pocket medicalexpenses have been. Alsoconsider if the followingyear will bring any big lifechanges such as a mar-riage, divorce, new baby orchanged dependent status.

To calculate your poten-tial savings when using anFSA, visit asiflex.com/Cal-culator/Tax-Savings-Cal-culator.htm.

1209 Broadway, Denison, Ia 51442www.thamsagency.com

800-798-4325 Toll Free712-263-3193 Office712-263-8267 Fax

OVER 75 YEARS OF SERVICE

Front: Allison Schoonover, Marsha Craig, Judy Thams, Gilda LopezBack: Paul Outhouse, Allen Thams, Todd Thams, Emily Thams

85-FINANCIAL (FINANCIAL 2012-THAMS) TM

Serving Western Iowa since 1934,our family-owned and operatedagency has the experience and

solutions to help you.

Todd Thams of the Thams Agency invites you to stop in for a no-obligation insurance quoteor policy review. They would be honored to be “Your Agent of Choice.” With their newly re-modeled office and all the latest technology, they are equipped to serve you now and foryears to come. Photo by Bruce A. Binning

Thams Agency honoredtwo consecutive years

EMC Insurance Companies announced its 2013 “Leading Partners” and has distin-guished Thams Agency of Denison as one of the highest performing EMC agencies inthe country, placing it in the top 15 percent of all EMC agencies in the United States.The annual award is based on key indicators which are reviewed over a three-yearperiod.

Thams Agency is a full service independent insurance agency. They have providedinsurance in Western Iowa for nearly 80 years. For more information contact ThamsAgency at 712-263-3193 or EMC at 800-362-2227.

EMC Insurance Companies is a property/casualty carrier headquartered in DesMoines. With assets of nearly $3 billion, they are one of the largest property and ca-sualty entities in Iowa and among the top 60 insurance entities nationwide. Approx-imately 85 percent of the company’s business is in commercial lines with the re-maining 15% in personal lines.


85-FINANCIAL (FINANCIAL 2013-HAWLEY INS. )HS

HHHAWLEYInsurance

Inc.CROP INSURANCE

205 Main Street • P.O. Box 305 • Vail, Iowa 51465

In the blinkof an eyeIn just the blink of an

eye, nature can destroyyour crop ...and your

future. Don’t leave yourfuture unprotected.

Call us today!

For All of Your Crop Insurance Needs,Call: Russ Hawley, Crop Specialist

712-677-5569

This institution is an equal opportunity provider."

1-Financial Guide(If you aren’t_Edward Jones)ES

www.edwardjones.com Member SIPC

Leaving a 401(k) with a previous employer could mean leaving it alone with no one to watch over it.

At Edward Jones, we can explain options for your 401(k) and help you select the one that’s best for you. If you’d like to roll it over to an Edward Jones Individual Retire-ment Account (IRA), we can help you do it without paying taxes or penalties. And you can feel confident that someone is looking out for you and your 401(k).

To find out why it makes sense to talk with Edward Jones about your 401(k) options, call or visit your local financial advisor today.

If You Aren’t at Your Last Job, Why Is Your 401(k)?

Scott A FergusonFinancial Advisor.1325 BroadwayDenison, IA 51442712-263-5636

Try our EZ Pay Don’t worry about renewing

your subscription to the Denison Bulletin & Review ever again!

Call 712-263-2122 now!

Common automobile insurancepolicy questions and answers

submitted by Todd Thams, Thams AgencyThe best time to learn about what’s covered in a basic

automobile insurance policy is before you have a claim.We’ve gathered the answers to the most common “AmI covered if...” questions about your automobile in-surance policy to help you minimize any coverage sur-prises.

If a friend drives my car, is he or she covered bymy policy? Since most insurance coverage is connect-ed directly to the car, if someone else borrows your caroccasionally, he or she should becovered under your policy. Yet,your premium is based on bothyour vehicle and the “primary”driver of that car - you. If someoneelse starts driving your car morethan you do, contact us to havethem added to your policy to avoidcoverage complications.

If I borrow a friend’s car andhave an accident, who pays?When you borrow someone else’scar and are involved in an acci-dent, his or her insurance will kickin first. However, beware of driv-ing someone’s car if he or she haslittle or no insurance, as your policy could be triggeredonce their limits are exhausted.

My golf clubs were stolen from my vehicle. Am Icovered? Your homeowners insurance policy providescoverage for personal property, regardless of whereyou are. However, if your golf clubs are old, considerbuying a replacement cost endorsement for your per-sonal property. This way you will get what it costs toreplace the golf clubs, less the applicable deductible.

My children have left home for college. Do I stillhave to include them on my policy? Yes, becausewhen your college students come home to visit, they

will have access to the family car. You may be eligiblefor reduced premiums if the college is more than a cer-tain distance (100 miles, for example) from your home.Check with us on specifics.

An uninsured driver totaled my car! Who pays?Your collision coverage or your uninsured motoristproperty damage coverage pays, if you bought it. Ei-ther way, you'll have to pay a deductible.

I caused an accident and am being sued by theother driver. Am I covered? Yes. The liability portion

of your insurance policy guaran-tees your insurance company willdefend a claim or lawsuit on yourbehalf, up to your policy’s limitsof liability.

Does rental reimbursementprovide coverage if I take mycar to a shop for mechanical re-pairs? No. Rental reimbursementis for cars that are being repairedas a result of accidents or other in-sured damages (storm damage,etc.).

If my compact discs are stolenfrom my vehicle, is it coveredunder my automobile insurance

policy? Almost all auto insurance policies exclude cov-erage for any losses of discs and other sound trans-mitting or receiving equipment used in an automobile.For added protection, check with us about purchasingadditional coverage for the stereo and discs used inyour vehicle.

How can I be sure I have the right coverage? Hav-ing the right vehicle coverage, policy limits and de-ductibles in place is an important part of financial plan-ning. Contact an agent you trust help you get the com-prehensive automobile coverage you need to minimizeany unwanted surprises!

Immediate incometax changes for Iowa taxpayers

Effective with the enactment of Senate File 106 onFebruary 14, 2013, Iowa tax provisions are coupled withfederal provisions retroactive to January 1, 2012, in theareas listed below.

NOTE: Iowa did not couple with the bonus deprecia-tion provisions allowed for federal tax purposes for the2012 tax year.For individual income tax filers only:

Deduction of educator expenses.Tuition and fees deduction for higher education.Election to deduct state sales/use tax as an itemizeddeduction in lieu of state income tax.Treatment of mortgage insurance premiums as quali-fied residence interest.Tax free distribution from an IRA to certain charitiesfor individuals 70½ and older.Iowa allows the exclusion of 50% of the capital gainfrom the sale of employer securities of an Iowa corpo-ration to an Iowa based employee stock ownershipplan (ESOP), as long as the ESOP owns at least 30%of the outstanding employer securities after the sale.Members of the armed forces, armed forces military re-serve and the National Guard in an active duty statuscan exclude pay received from the federal governmentfor military service performed.An Iowa geothermal heat pump tax credit is availableequal to 20% of the federal residential energy tax cred-it for installations of geothermal energy systems forresidential property located in Iowa.

For individual income tax filers as well as corporateincome tax (including S corporations), partnership,fiduciary and franchise tax:

2012 section 179 limit for Iowa is $500,000, which isthe same as the federal section 179 limit. The phase-out threshold is $2 million.Do not include any deduction for the small businesshealth insurance tax credit that was not allowed as adeduction on the federal return.The Iowa Department of Revenue will update online

forms, instructions, and web pages accordingly. Tax-payers who have already filed tax year 2012 returnsshould review information provided on the Iowa De-partment of Revenue’s website at www.iowa.gov/taxabout how to file an amended return.

Additional information can be found on the depart-ment’s website: www.iowa.gov/tax. Taxpayers can callfor assistance at 515-281-3114 or 800-367-3388 (Iowa,Omaha, Rock Island, Moline), from 8 a.m. to 4:15 p.m.,Central Time, or email [email protected].


Telco Triad

“Where You Belong!”

1420 Tri View Ave.

Sioux City

712-252-4368

2550 Glenn Ave.

Sioux City

712-276-0506

5500 Military Rd.

Sioux City

712-277-2487

24 West 4th

Spencer

712-262-4194

11 N. 7th St

Denison

712-263-8100

Community Credit Union

w w w . t e l c o t r i a d . o r g

Lemon

apr*

mon

Boats, Campers, RV’s, and Motorcycles too!

Sour on your present car...

7-R 6&8 - ADV 7&9(Sour-Telco) TS

1-Finaicial Guide(Life Changers Edward Jones)ES

Making sure you have adequate life insurance coverage is an ongoing process. When your priorities change, so do your insurance needs. An insurance review from Edward Jones can ensure that:

You have the appropriate amount and type of coverage.

Your policies are performing as expected; your premiums are still competitive.

Ownership is structured properly and beneficiary designations are current.

Your policy is designed to fit your current situation.

Call today for a complimentary review to help ensure your policies still meet your needs and those of your loved ones.

www.edwardjones.com

INS-4329A-A

Life Changes.Protecting Your Family Shouldn’t.

Edward Jones operates as an insurance producer in California, New Mexico, and Massachusetts through the following subsidiaries, respectively: Edward Jones Insur-ance Agency of California, L.L.C., Edward Jones Insurance Agency of New Mexico, L.L.C., and Edward Jones Insurance Agency of Massachusetts, L.L.C.

Scott A FergusonFinancial Advisor.

1325 BroadwayDenison, IA 51442712-263-5636

Did you know that you can read our special sections ONLINE?

DBRnews.com

Choose direct deposit to safeguard your tax refund

Direct deposit is the fast, easy and safe way to receivea tax refund.

Whether an individual files electronically or on paper,direct deposit gives them access to their refund fasterthan a paper check.

Following are four reasons more than 80 million tax-payers chose direct deposit in 2012:

Security. Every year the U.S. Postal Service returnsthousands of paper checks to the IRS as undeliverable.Direct deposit eliminates the possibility of a lost, stolenor undeliverable refund check.Convenience. With direct deposit, the money goes di-rectly into an individual’s bank account. They will nothave to make a special trip to the bank to deposit the

money.Ease. It’s easy to choose direct deposit. When individ-uals are preparing their tax returns, simply follow theinstructions on the tax return or in the tax software.Make sure to enter the correct bank account and bankrouting transit numbers.Options. Individuals can deposit their refund intomore than one account. With the split refund option,taxpayers can divide their refunds among as many asthree checking or savings accounts and up to three dif-ferent U.S. financial institutions. Use IRS Form 8888,Allocation of Refund (Including Savings Bond Pur-chases), to divide a refund. Individuals who are des-ignating part of their refund to pay a tax preparer

should not use Form 8888. Individuals should onlydeposit their refund directly into accounts that are intheir own name, their spouse’s name or both if it’s ajoint account.Some banks require both spouses’ names on the ac-

count to deposit a tax refund from a joint return. Tax-payers should check with their bank for direct deposit re-quirements.

Check the instructions in the tax form for more infor-mation about direct deposit and the split refund option.Helpful tips on both are also available in IRS Publication17, Your Federal Income Tax. Publication 17 and IRSForm 8888 are available on IRS.gov or by calling the IRSat 1-800-TAX-FORM (1-800-829-3676).


• Auto• Business• Long Term Care• Crop Insurance

CORNERSTONE INSURANCEAGENCY, LLC

663-4200Westside - Vail - Halbur

Are You Planning ForYour Future?

At Cornerstone Insurance Agency, LLCWe are looking out for your best interest.

We cover all of your insurance needs:

85-(FINANCIAL-CORNERSTONE INSURANCE)CS

Dennis Koenig • Joel Owen• John Walsh

• Farm Insurance• Home• Health• Life

677-2286 658-2026

• Medicare Supplement & Part D

• SR-22 Filings

Life • HealthAuto • Home

Business

www.pekininsurance.com

We canpoint you

in the right direction

for all your insurance needs!

Everyone can use a littleguidance in deciding whichinsurance policiesbest suit their individualbudgets and circumstances. Call your local Pekin Insurance Agent today!

Since 1921

The HoffmanAgency

36 South 12th StreetSuite A

Denison, IA 51442712-263-5061

Auto Home Business

Life Health

www.pekininsurance.com

85-FINANCIAL (FINANCIAL 2013-HOFFMAN) HM

Jay MartenInsurance &

Financial ServicesAgent/Representative

F A R M E R S®

F INANCIAL SOLUTIONSFeel good about your future.

112 Avenue C • Denison, IA 51442

877-758-8031 or 712-263-5043Offering: Retirement, Retirement Savings,

Retirement Funding, Retirement Plans, IRAs,Roth IRAs, IRA Rollovers, 401(k) Plans, College Savings,

Estate Protection, Tax-Deferred Strategies

Securities offered throughFarmers Financial Solutions, LLC

Member FINRA & SIPC

85-Financial 2013 (F & I-MARTEN) MM

Spend your advertisingdollars wisely!

Call 712-263-2122 to place an ad.

Questions and answers aboutthe health care reform law

submitted by Todd Thams, Thams AgencyI’ve heard a lot about the health care reform

law. When do the reforms become effective?The health care reform bill was signed into law

in March 2010. The changes made by the healthcare reform law go into effect over a period of years.

Some of the law’s changes are already in effect, suchas the prohibition on pre-existing condition exclusionsfor individuals under age 19. Other changes go into ef-fect in future years, such as the requirement for individ-uals to buy health coverage or pay a penalty.

Does health care reform allow people to keep theircurrent health coverage? Yes. Nothing in the law re-quires individuals to terminate coverage that they had onthe date the law was passed. However, due to new cov-erage requirements, the coverage provided under an in-dividual's plan may change. Also, employers are not re-quired to offer the same coverage in future years.

If an employer’s health plan existed on March 23,2010, and the employer has not made certain changes tothe plan, the plan may have grandfathered status. Grand-fathered plans are subject to many, but not all, of thehealth care reform law’s requirements.

Are individuals required to have health coverage?Not yet. However, in 2014, most U.S. citizens must ob-tain health insurance coverage or they will be subject topenalties. There are exceptions for low-income individ-uals and those who are unable to obtain affordable cov-erage.

What are the penalties for individuals who don'thave health coverage? Beginning in 2014, the penal-ties for individuals who are not enrolled in coverage willbe the greater of a flat dollar amount or an applicablepercentage of income. The flat dollar amount for 2014 is$95, $395 for 2015 and $695 for 2016. After 2016, theflat dollar amount is indexed for inflation. The applica-ble percentage of income is 1 percent for 2014, 2 percentfor 2015, and 2.5 percent for 2016 and later years. Thepenalty for children is half of that for an adult. A fami-ly's total penalty generally cannot exceed 300 percent ofthe adult flat dollar penalty or the national average an-nual premium for the "bronze" level of coverage throughan insurance exchange.

Does the law affect dependent care spending ac-counts and health flexible spending accounts? De-pendent care spending accounts are capped at $5,000annually. Prior to 2013, health flexible spending ac-counts (health FSAs) had no cap (although many em-ployers had their own caps, typically at the $5,000-

$6,000 level or less). The health care reform law does notchange the limit on dependent care accounts, which re-mains capped at $5,000. However, the law does estab-lish an annual cap of $2,500 on employee pre-tax con-tributions to health FSAs. This change is effective forplan years beginning on or after January 1, 2013.

How long can my adult child remain covered undermy health plan? Effective for the first plan year begin-ning after September 23, 2010, health plans are requiredto permit children to stay on family coverage until theyturn 26. This rule applies to all plans in the individualmarket and to non-grandfathered employer plans. It alsoapplies to grandfathered employer plans; however, thesponsor of a grandfathered plan may decide to excludefrom coverage adult children with another offer of em-ployer-based coverage (such as through the child’s job).Beginning in 2014, grandfathered plans must cover chil-dren up to age 26, even if they have another offer of cov-erage through an employer. Note that state law require-ments may require offering coverage beyond age 26.

Is the coverage for my adult dependent taxable?No, the value of the coverage is not subject to federal taxfor the employee or dependent. The health care reformlaw revised the Internal Revenue Code to clarify that thecost of coverage for a taxpayer's child is excluded fromincome through the end of the year in which the childturns 26. However, state requirements may differ, sostate taxes may apply.

Can I get coverage for my child who has a pre-ex-isting condition? Effective for the first plan year begin-

ning after September 23, 2010, health plans that coverchildren will not be able to deny coverage to your child

under 19 years old based on a pre-existing condition.This applies to all non-grandfathered andgrandfathered plans.

What consumer protections will I get if Iobtain insurance at work? Effective for the first planyear beginning after September 23, 2010, health planswill be prohibited from placing lifetime limits on whatthey will pay for your medical care and they can onlyapply restricted annual benefit limits. Insurers will nolonger be able to arbitrarily cancel your insurancepolicy when you get sick, except in cases of fraud ormaterial misrepresentation.

Health plans will be prohibited from denyingcoverage to children with pre-existing conditions.This applies to all non-grandfathered and grand-fathered plans.

All non-grandfathered group health plansmust provide coverage for preventive services. Recom-mended prevention and vaccination services will be cov-ered without any deductibles or copayments. Plans mustalso have a straightforward and independent appealsprocess so you can appeal decisions by your health in-surance company.

I have a pre-existing condition. How can I get cov-erage this year? This year, if you have been uninsuredfor at least six months and have a pre-existing condition,you may have access to health insurance through thehigh-risk pool program. This temporary program will beavailable until 2014.

Can my insurance company terminate my cover-age if I get sick? Effective for the first plan year begin-ning after September 23, 2010, insurance companies willbe prohibited from retroactively dropping, or rescinding,your coverage when you get sick. Rescissions of cover-age will only be allowed in cases of fraud or materialmisrepresentation. This rule will apply to all non-grand-fathered and grandfathered plans.

When does free preventive care start and will it af-fect my plan? Effective for plan years beginning afterSeptember 23, 2010, all non-grandfathered group healthplans and plans in the individual market must providecoverage for preventive services. Recommended preven-tion and vaccination services will be covered without anydeductibles or copayments. Seniors enrolled in Medicarewill also no longer have to pay for proven preventiveservices.

REFORM . . . Page 7


85-Financial(2013Edward Jones/JeffPloeger)ES

www.edwardjones.com Member SIPC

It’s simple, really. How well you retire depends on how well you plan today. Whether retirement is down the road or just around the corner, the more you work toward your goals now, the better prepared you can be.

Preparing for retirement means taking a long-term perspective. We recommend buying quality investments and holding them because we believe that’s the soundest way we can help you work toward your goals. At Edward Jones, we spend time getting to know your retirement goals so we can help you reach them.

To learn more about why Edward Jones makes sense for you, call or visit today.

Dreaming Up the Ideal Retirement Is Your Job. Helping You Get There Is Ours.

Jeff Ploeger, AAMS®Financial Advisor.

1919 4th Ave S Suite 1Denison, IA 51442712-263-5860

7-Financial 2013(Multiple IRAS/Thrivent)TS

25830G R1-12 201200082

Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, 800-847-4836, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent Financial for Lutherans. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents of Thrivent Financial.

Multiple IRAs and 401(k)s?Consider a roll and take control.

An IRA here, a former job’s 401(k) there—are your retirement assets scattered? If so, it could be costing you time, extra paperwork and fees. Take control of your retirement assets and keep your tax-deferred status by rolling them into a Thrivent Financial Rollover IRA. You may get more investment options and save some money, too.

Contact us today at 712-263-6785 to hear about our rollover IRAs and how they can benefit you.

West-Central Iowa Associates20 N. Main • Denison, IA 51442 • 712-263-6785

Trisha M. Fink, FIC Financial Associate

Jared M. Koch, FIC Financial Associate

Neal L. Meseck, FIC Financial Associate

Craig T. Dozark, FICFinancial Associate

Have you seen our eEdition? Go to www.DBRnews.com!

REFORM, from Page 6

Effective for plan yearsbeginning on or after Au-gust 1, 2012, non-grand-fathered health plansmust provide additionalpreventive services forwomen without cost shar-ing, such as coverage forwell woman visits, breast-feeding support and con-traception. Exceptions tothe contraceptive coveragerequirement apply to reli-gious employers.

What informationabout insurance compa-nies is going to be post-ed on the Web? The De-partment of Health andHuman Services has es-tablished www.health-care.gov, a website whereresidents of any state mayidentify health insurancecoverage options in thatstate.

The site includes infor-mation on coverage op-tions for small businessesas well.

Effective January 1,2011, health insurers, in-cluding insurers of grand-fathered plans, must an-nually report on what per-centage of premium dol-lars they spend on medicalcare, as opposed to prof-its, marketing and admin-istrative expenses.

You can see that infor-mation online and may beentitled to a rebate if yourplan spent too much onoverhead and profits.Health insurers must alsopost information aboutsome rate increases alongwith a justification forthem.

Did the health care re-form law extend theCOBRA premium sub-sidy extension? No. Thehealth care reform law did

not extend the eligibilitytime period for the COBRApremium reduction. Eligi-bility for the subsidyended on May 31, 2010;however, those individu-als who became eligibleon or before May 31, 2010can still receive the full 15months as long as they re-main otherwise eligible.

Did the health care re-form law extend thetime period I can haveCOBRA beyond 18months? No. The healthcare reform law did notextend the maximum timeperiods of continuationcoverage provided byCOBRA. COBRA estab-lishes required periods ofcoverage for continuationhealth benefits. A plan,however, may providelonger periods of coveragebeyond those required byCOBRA.

COBRA beneficiariesgenerally are eligible forgroup coverage during amaximum of 18 monthsfor qualifying events dueto employment termina-tion or reduction of hoursof work. Certain qualify-ing events, or a secondqualifying event duringthe initial period of cover-age, may permit a benefi-ciary to receive a maxi-mum of 36 months of cov-erage. Individuals whobecome disabled can ex-tend the 18 month periodof continuation coveragefor a qualifying event thatis a termination of em-ployment or reduction ofhours.

To qualify for additionalmonths of COBRA contin-uation coverage, the qual-ified beneficiary must:

Have a ruling from theSocial Security Admin-istration that he or shebecame disabled within

the first 60 days ofCOBRA continuationcoverage (or before);and Send the plan a copy ofthe Social Security rul-ing letter within 60 daysof receipt, but prior toexpiration of the 18-month period of cover-age. If these requirements

are met, the entire familyqualifies for an additional11 months of COBRA con-tinuation coverage.

Did the health care re-form law eliminateCOBRA? No. The healthcare reform law did noteliminate COBRA orchange the COBRA rules.

How does the healthcare reform law help melearn more about myhealth plan coverage?As of September 23, 2012,or soon after, your healthinsurance company orgroup health plan is re-quired to provide you withan easy-to-understandsummary about benefitsand coverage. This re-quirement is designed tohelp you better under-stand and evaluate yourhealth coverage choices.

This summary is calleda Summary of Benefitsand Coverage, or SBC. Youmay also request a glos-sary of terms from yourhealth plan or health in-surer. The glossary in-cludes definitions forcommonly used terms inhealth insurance cover-age, such as "deductible"and "copayment."

More information on thehealth care reform law isavailable at: www.health-care.gov.

Sources: Department ofLabor, Department ofHealth and Human Ser-vices

Thrivent Financial can help you plan for the futureYour Thrivent Financial representatives, Jared Koch, Neal Meseck, Trisha Fink and Craig

Dozark, can help you with a wide variety of financial and insurance products from life in-surance, mutual funds and annuities to long term care and medicare supplement insurance.Thrivent Financial truly is a one-stop shop. Photo by Bruce A. Binning


Member FDIC

712-263-5055

United Bank of Iowa has been recognized for our strong commitment to agriculture. We are proud to be

for the eighth year based on ag loan volume.

Pre-Approvals & Construction Loans, Long Term Fixed & Adjustable Rate Loans, Low Closing Cost

Automotive, Recreational Vehicle, Home Equity, Home Improvement, Personal, CD Loans

Agriculture

WE’RE HERE TO FULFILL ALL YOUR LOAN NEEDS!

Consumer/Mortgage Agriculture Mortgage

Iowa insurance commissioner submits Exchange Blueprint to federal government

Iowa Insurance Commissioner Nick Gerhart submitteddocuments on February 14 to Health and Human Ser-vices (HHS) Secretary Kathleen Sebelius as required forthe implementation of a state/federal Partnership Ex-change in Iowa.

The required documents included an Exchange Blue-print that is consistent with Governor Branstad’s Decla-ration letter of December 14, 2012, in which he statedthat Iowa would proceed with the Partnership plan for aHealth Insurance Exchange.

The Exchange Blueprint spells out that Iowa will con-

tinue to regulate insurance plans and that the state willretain the function of the Plan Management in state/fed-eral Partnership Exchange.

This leaves the oversight of companies participating inthe Exchange and the qualified health plans they offerwithin the Iowa Insurance Division’s jurisdiction and au-thority.

With the Medicaid and CHIP eligibility and plan man-agement functions reserved for the state under thestate/federal partnership model now established, thenext step in the process is for HHS to make a determi-

nation regarding the acceptance of Iowa’s plan. “We’re glad to keep this moving forward,” Gerhart

said. “There are many things not yet known about howthe exchange will impact the Iowa market, but the fed-eral law makes it clear an exchange will be implement-ed in Iowa by January 1, 2014. With this submission, wehave met the requirement to use the partnership modelthat keeps some control of the exchange in the hands ofthe state. “

The Iowa Blueprint Package can be viewed on the IowaInsurance Division’s website www.iid.state.ia.us.

VITA and Free File Offer Optionsfor Filing No-costTax Return

by Joyce Lash and Laura Sternweis Volunteer Income Tax Assistance sites are open across

the state to help individuals and families who have in-comes at or below $51,000 file their tax returns at nocost. Iowa State University Extension and Outreach fam-ily finance specialists have assisted a number of com-munities with establishing these sites to provide theservice.

“You may find a site near you between now and Aprilusing the VITA Locator Tool on the IRS website or call800-906-9887. Iowa residents also may call 211 to lo-cate sites,” said Joyce Lash, an extension family financespecialist.

The focus of the volunteer service is to ensure thatlow- to moderate-income taxpayers file the necessaryforms to receive tax credits that can benefit families fi-nancially.

“Individuals can’t receive Earned Income Tax Creditsor Child Tax Credits if they complete the 1040EZ taxform to report income from a W-2. But professional serv-ices to prepare a 1040 form with itemized deductionsand a state return may cost an average of $200,” Lashsaid.

Through VITA, volunteers who are certified to preparetax returns help families maximize their tax return andbenefit from the added savings of using the free service.Last year VITA services supported by ISU Extension andOutreach prepared 1,600 returns, Lash said.

Individuals who wish to file their own returns also canuse Free File, available at the IRS website, www.irs.gov.

“If your income is at or below $57,000 you can usefree software to submit your federal return electronical-ly. The software is being offered through a partnershipagreement between the IRS and commercial tax softwarecompanies,” Lash added.

PPrrootteecctt yyoouurr ffaammiillyyaanndd pprrootteecctt yyoouurr

lliiffee ttooggeetthheerr..

PPrrootteecctt yyoouurr faammiillyyaanndd pprrootteecctt yyoouurr

lliiffee ttooggeetthheerr..

PPrrootteecctt yyoouurr ffaammiillyyaanndd pprrootteecctt yyoouurr

lliiffee ttooggeetthheerr.. Knowing you’reprotected byquality insurancecoverge you can trust . . .You’ll rest easiertonight and everynight!

106 2nd St., Schleswig, Iowa712-676-3359 or 800-345-3306

Farmers MutualInsurance Assn.

InsuringPeaceMindof

7-Financial13 (Financial 2012-FarmersMutual)FMIS

Insurance ®

Protect your familyProtect your familyand protect yourand protect your

life together.life together.

Visit us online at www.DBRnews.com

Documents

Financial and Insurance Guide