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Lewes, Delaware
Jim's Towing Service
March 28, 1997     Cape Gazette
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March 28, 1997
 

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48- CAE. GAZETI,Pri'day, h282 April 3, I997 Bus0000ss & REAL ESTATE Opportunity knocks for many at Summer Job Fair Luting good employees a boon to Cape Region tourism industry employers were pleased with the outcome of the job fair. "All of the businesses and employers that participated this year were very happy overall," she said. "We've received very positive feedback. Many of them did their hiring on the spot." In preparing for the fair, the chamber sent out information to all Delaware high schools, as well as to Delaware, Maryland and Pennsylvania colleges and univer- sities. Additional mailings were sent to certain colleges and uni- versities in New York and Vir- ginia. Everhart said the driving force behind the job fair and the employment viability of the resort area is its tourism. Grotto Pizza, Inc., a company with 12 Delaware locations and at least three more stores on the way, Continued on page 50 By Jen Elllngsworth Opportunity was knocking at this past weekend's Summer Job Fair, sponsored by the Rehoboth Beach-Dewey Beach Chamber of Commerce. The fair, held on Fri- day and Saturday, March 21-22 at the Ruddertowne BayCenter in Dewey Beach, featured 54 employers who were'seeking summer help. Visitors to the job fair, which ranged from high school and col- lege students to retirees, were free to walk around, talk with compa- ny representatives, and fill out applications for employment. " Rehoboth Beach-Dewey Beach Chamber of Commerce Executive Director Carol Everhart said it is estimated that between 1,500- 2,000 people visited this year's fair. She said that based on the completed evaluation forms and discussions with participants, den EIIInlgworlh photo Paul Faircloth (on left), assistant park supervisor at Fenwiek Island, and Ken Farrall, Delaware Seashore State Park supervisor, stood by at 1997 Summer Job Fair while prospec- tire employees completed applications. Both men said the event has a good sueeeu rate in filling summer jobs at the state parks. Rehoboth Seafood Market, New Wave Softubs find new locations By Rosanne Pack The 1997 tourist migration is still in the fledgling stages, but several area businesses are doing some migrating of their own. In one case, one office moving opened an opportunity for another to make a shift. After rattling around in extra space that they did not need, Wingate & Eschenbach, surveying and engineering firm, moved to a more appropriate office space. Their move took them from the southbound side of Highway 1, number 3721, to the north- bound side in the Bay Mart Plaza. Doug Wingate said that the space is just what the four-person firm needs. They have been in the new office for two weeks. Wingate and Eschenbach has been in Rehoboth since 1957. The move of the surveyors' office created the chance for New Wave Softubs to move to a larger space. The nice thing about portable hot tub spas, is that they are just that -- portable ---and they can not only be moved to customers' locations, they can be moved to a new business location. On Wednesday, April 2, New Wave will open at 3721 Highway 1, 1/2 mile south of their present location. John Hardy, owner, said that the new, larger location will allow the business to expand their line of spas and related prod- ucts. He said that New Wave is the only authorized sales and service dealer for Soft- ub in the state, and their business is steadily growing. He said that the new store will give them a larger display area as well as more room for service of spas. Along the same stretch of Highway 1, Rehoboth Seafood Market, a former neigh- bor of New Wave Softubs, recently made a move slightly to the south. The fresh seafood and take-out market is now at 4131 Highway 1. "We are 200 yards south of our previous location," said owner Mark Lane. "We bought a little house, gutted it, enlarged it and completely re-did it. It's decorated with a ceiling mural that gives you the impres- sion that you are under water." Lane said the additional space in the new Continued on page 50 Rolling company stock into IRA can be taxing It is a less than well-publicized fact that employees leaving a job with a large amount of company stock in their retirement plan can take advantage of some significant tax advantages provided they don't roll that stock into an IRA. Many financial advisors only discuss the tax ramifications of not rolling a retirement plan distri- bution into an IRA in a negative sense. The tax advantages of walking away with a former employer's company stock crtifi- cate are either ignored or unknown. As more and more com- panies downsize and former employees are faced with the options regarding a retirement plan distribution, it is important to be aware of the advantages and disadvantages attached to rolling over company stock. When an employee elects to take a distribution upon termina- tion of employment, a company must offer the options of receiving the distribution in cash or securi- ties, or rolling it into an IRA. If the employee elects to receive the assets, there may be a 10 percent penalty and the employee will owe income taxes on that portion of the distribution which does not represent after-taxes contributions (generally 100 percent is taxable). Rolling the distribution into an FINANCIAL FOCUS IRA is therefore usually the more attractive option, however, if the employee has a large amount of highly appreciated company stock in the retirement account, not rolling the stock certificate could mean a significant savings by deferring the tax on the apprecia- tion. When taking receipt of compa- ny stock, the employee will owe taxes, but only on the value of the shares at the time the stock was purchased or when the company issued the stock to the employee's account (the "cost basis"). If the company's current stock is a win- ner, this cost basis is usually much less than the stock's current sell- ing price. Any applicable 10 per- cent premature penalty will only apply to this cost basis, as opposed to the current value. The employee will, of course, pay annual income taxes on any dividends. The employee can continue to defer taxes on all of the apprecia- tion that has occurred since the time of the initial purchase until the shares are sold, at which point taxes will be paid at the long-term capital gains rate and not at the often higher income tax rates. If the employee dies after receiving the distribution, the heirs will receive all appreciation tax-free since they will receive a "step-up" in basis. If, however, the employee elects to roll shares of company stock into an IRA, be or she will pay an ordinary income tax rate on any subsequent withdrawals from the IRA, and if the employee dies leaving shares in the account, the heirs will owe ordinary income tax on the entire value of the stock. If the employee is already facing excise tax issues, adding the company stock to the IRA will only exacerbate the situation. On the other hand, rolling company stock into an IRA will allow the employee to diversify his or her position immediately without any tax consequences. The biggest potential tax benefit of owning employer stock comes to the employee who made after- tax contributions to a retirement plan in addition to saving the usu- al pre-tax amounts. Any after-tax contributions are distributed from the account tax free; if instead of receiving that distribution in cash. the employee elects to receive in company stock, the stock will he valued at basis, and the entire amount will be received tax-free. So if for example, an employee has $5,000 in after-tax dollars in a retirement account, he can with- draw company stock with a basis of $5,000 tax-free, even though the current market value of the stock may be $20,000. George McLaughlin is an investment executive with Legg Mason of Chestertown, McL George McLaughlin