Page 24 - Pakistan Link - July 16, 2021

P24 – PAKISTAN LINK – JULY 16, 2021 COMMENTARY
Retirement Planning: Four Reasons You

May Want to Convert to Roth IRA

n By Saghir Ahmad Aslam FOUNDATION
Rawalpindi, Pakistan P.O. BOX 5481, Santa Clara, CA 95056 | (408) 244.3282 | www.hidaya.org
(The following information is provided solely to ed-
ucate the Muslim community about investing and finan- One Million Meals
cial planning. It is hoped that the Ummah will benefit
from this effort through greater financial empowerment,
enabling the community to live in secu-
rity and dignity and fulfill their religious
and moral obligations towards charitable 50 C $1 $5 $10
activities) provides provides provides provides
Market volatility this year may have
prompted you to review your investment 1 meal 2 meals 10 meals 20 meals
plans, including your retirement goals. As
you look at them, you may want to consider converting
from a traditional IRA to a Roth IRA. 4. Your non-spouse designated beneficiaries can
Roth IRAs possesses characteristics that make them let an inherited Roth IRA continue to potentially grow,
generally attractive planning tools; for example, they are taking no distributions until year 10 when they fully dis-
not subject to required minimum distribution (RMD) tribute the account with no tax consequences. After the
rules during the life of the original account owner, which passage of the SECURE Act in late 2019, non-spouse des-
you can use as an estate planning tool for passing money ignated beneficiaries generally must distribute an inher-
to your heirs. ited IRA by the end of the 10th calendar year beginning
A combination of tax law changes and market con- the year after the IRA owner dies.
ditions might make Roth IRAs even more attractive now, If you’re employer’s qualified retirement plan Donate online via check or card at
especially to investors who are in a position to pay tax (QRP), such as a 401(b), offer a Roth designated account
due upon conversion with non-retirement plan assets. option, you also may want to consider making contribu- www.hidaya.org
Here are four reasons why now might be a good tions to this account. Designated Roth account assets can
time to convert: be rolled over only to a Roth IRA or another employer’s
1. If market volatility has depressed your port- designated Roth account if that plan accepts the rollover. or call us at (408) 244-3282
folio’s value, you may owe less in taxes on any tax-de- It’s important to remember that you can no longer Hidaya Foundation is a non-profit 501 (c)(3) charitable organization with Tax ID # 77-0502583
ductible contributions you made to the traditional IRA recharacterize or undo a Roth IRA convesion. This is an
as well as any tax-deferred earning that may have built important decision.
up in the account over the years. A lower account value (Saghir A. Aslam only explains strategies and for-
would typically result in a lower tax bill. mulas that he has been using. He is merely providing
2. If you expect your portfolio’s value to recover in information, and NO ADVICE is given. Mr Aslam does Exchange Rates for Currency Notes*
the future, converting now would shield future earning not endorse or recommend any broker, brokerage firm,
from taxation. After conversion, any assets in the Roth or any investment at all, nor does he suggest that anyone Countries Buying Selling
IRA could potentially grow on a tax-advantaged basics will earn a profit when or if they purchase stocks, bonds Rs. Rs.
and qualified distributions would be tax-free. or any other investments. All stocks or investment ve-
3. If you expect future tax rates will be higher hicles mentioned are for illustrative purposes only. Mr
when you being to take distributions, converting and Aslam is not an attorney, accountant, real estate broker, USA 159.20 159.90
playing a lower tax now might make economic sense. stockbroker, investment advisor, or certified financial UK 217.00 220.00
Moreover, qualified distributions would be tax-free. planner. Mr Aslam does not have anything for sale.) S.Arabia 41.08 42.30
Japan 1.41 1.44
KINGDOM FROM P9 cal investments by the government ical influence, and accountability by Euro 185.50 187.50
Incentives must be provided to en- should be in sustainable develop- all governing authorities. Moreover, UAE 42.30 43.00
trepreneurs who can work with for- ment projects, whereby small com- Kosovo as a secular democracy must
eign companies on projects in the munities collaboratively develop protect its democratic foundation by
ballooning virtual sector. Similar their own projects that provide not allowing religion to intercede in (*July 15, 2021)
investment incentives must be given jobs for local individuals, especially civilian affairs and not allowing any
to countries who can invest in Paki- young adults. Such projects, for ex- foreign power, such as Turkey, to use ing conflicting issues between Serbia rights, the consequences of these find-
stan’s emerging technology sector. ample, may include small animal Islam a tool by which it can influence and Kosovo, the prospect of normal- ings regarding Thomas Jefferson and
All kingdoms and countries farming, tree planting, manufactur- the domestic affairs of Kosovo. ization between the two countries the Covenants of the Prophet are revo-
look out for themselves with the re- ing of certain machinery compo- becomes as distant as it has ever lutionary. They require us to reconsider
sources they have at hand. Naturally, nents, etc. These projects are cost ef- Collaboration with Serbia been. the philosophical and political prin-
Pakistan’s ability to do so is limited fective and often produce income in The concerns that Kurti has I believe that Kurti has a mo- ciples of the Founding Fathers and the
primarily by its resources but also a fairly short period of time. about the degree to which Kosovo mentous opportunity to dramati- role that the Qur’an and the Covenants
by a lack of policy foresight and of The government’s appropria- should collaborate with Serbia on cally transform the socio-political of the Prophet played in the creation of
concern for the well-being of Paki- tion of funds, along with USAID and major projects, like water manage- and economic conditions in Kosovo. the Declaration of Independence, the
stanis toiling in Saudi Arabia. Some World Bank financial support for ment of Lake Ujman, renewable en- He should be wise enough not to al- Constitution of the United States, and
of these, like resource poverty, are sustainable development projects, ergy, trade, and the conflict over the low his personal convictions in rela- the Bill of Rights, and consequently in
inherited conditions; the rest are the will go a long way toward economic association of three Serb-majority tion to Serbia in particular to trans- the laying of the foundation stones of
consequences of the decades-long growth as long as the investments municipalities in Kosovo, should not late into stubbornness, and remain the US Republic.
apathy demonstrated by a parade of are made for specific projects and prevent him from collaborating with open-minded to the advice of the (John Andrew Morrow received
self-interested and short-sighted rul- the community involved is account- Serbia as long as such cooperation EU and the US, which are commit- his PhD from the University of Toronto
ers. able. does not infringe on Kosovo’s inde- ted to Kosovo’s wellbeing and inde- where he studied Hispanic, Native, and
It is a pity that Pakistanis are pendence. pendence. Islamic Studies. He worked as a uni-
adept at quoting the Saudis in mat- Safeguarding democracy Moreover, given that the US (Dr Alon Ben-Meir is a profes- versity professor for two decades. He
ters of faith, but none of them have Although Kosovo is a secular and the EU strongly support dia- sor of international relations at the taught for the University of Toronto,
yet inquired where Pakistan’s nitaqat democratic country, like all democ- logue between the two countries, Center for Global Affairs at NYU. He Park University, Northern State Uni-
program is. What is our Vision 2030? racies it must be protected with zeal, Kurti should demonstrate that he is teaches courses on international ne- versity, Eastern New Mexico Univer-
(The writer is an attorney teach- nurtured, and never taken for grant- more than willing to follow their ad- gotiation and Middle Eastern stud- sity, the University of Virginia and Ivy
ing constitutional law and political ed. There are always anti-democratic vice and put the onus on Serbia for ies. - alon@alonben-meir.com) Tech Community College. He was a
philosophy. Dawn) forces who will exploit any opportu- any lack of progress. Kurti was on research fellow at the University of Chi-
nity to undermine the democratic the mark when he recently tweeted, COVENANTS FROM P21 cago, Purdue University, and Harvard
KOSOVO FROM P7 process for personal gains. Poland “To renew our transatlantic alli- a revelation. Thomas Jefferson did University. He received an Interfaith
Economic development and Hungary, which ironically are ance, I suggested synchronization of not “steal” Islamic ideas and ideals. Leadership Award from the Islamic
Economic development is the EU members, and the US, which is #Washington and #Brussels in the He appears to have been inspired by Society of North America in 2016 and
beating heart of any country and in one of the most democratic coun- Western Balkan while we work on them. The Declaration of Indepen- a Certificate of Special Congressional
the case of Kosovo it is even more tries in the world, were seriously three goals. 1. Democratization by dence, the Constitution of the United Recognition by the US House of Rep-
critical, especially because of the threatened by authoritarian lead- strengthening rule of law. 2. Security States, and the Bill of Rights were not resentatives in 2017. After reaching the
rampant poverty, high unemploy- ers—in the US by Trump and his fol- through NATO membership. 3. The copied from the Qur’an and the Cov- rank of Full Professor, he retired from
ment, inadequate domestic and lowers, which would have been in- unity of Europe through Western enants of the Prophet. The evidence academia to devote himself entirely
foreign investment, and the overall conceivable before his rise to power. Balkan membership of the EU.” suggests, however, that they were to scholarship and service. Professor
unfriendly business environment. For Kosovo to remain a vital That said, Kurti should have among the ingredients that contrib- Morrow has authored a vast body of
Certainly, weeding out corruption and flourishing democracy, the gov- also added the need for continuing uted to their creation. scholarly works in numerous fields. He
in high places will encourage invest- ernment must ensure that the basic dialogue with Serbia, because any At a time when intolerant, xeno- has published hundreds of scholarly
ment in major development projects, elements of democracy are fully pro- progress on that front will dramati- phobic, and Islamophobic extremists articles and dozens of academic books,
including infrastructure, manufac- tected by law. This includes free and cally help him realize his three afore- argue that Islam is a political ideology, including The Covenants of the Prophet
turing, housing, and in high tech. fair elections, freedom of the press mentioned goals. Otherwise, absent as opposed to a religion, with the aim of Muhammad with the Christians of the
However, one of the most criti- and assembly, judiciary free of polit- mutual recognition and the continu- depriving Muslims of human and civil COVENANTS, P25
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