Page 16 THE MALDEN ADVOCATE–Friday, August 19, 2022 School Sports and other extracurricular activities remain best bargain in the entire municipal budget As a new school year nears, the value of these programs which complement academics is clear C all it fiscal efficiency, value-based finances or the good, old-fashioned action cliché: “most bang for the buck.” But a truer statement is not often said than this, borrowed from the National Federation of State High School Associations’ (NFHS) “The Case of High School Activities”: High school activity programs – vital programs such as Sports, Music, Speech, Theater and Debate – are one of today’s best bargains. At a cost of only one to three percent (or even less than one percent in many cases) of an overall school’s budget, funding of high school activity programs produces some of the higher value per dollar of all school/municipal expenditures. It is in these sports and other extracurricular programs where young people learn lifelong lessons that complement the acCREDITORS AND RETIREMENT ACCOUNTS allow that spouse to gain access to a portion of the retirement account. The IRS would also have the ability to reach assets in a qualifi ed plan in order to seek recovery for back income taxes. Traditional IRA’s and Roth M any debtors are worried about a creditor’s ability to satisfy a judgment by attaching his or her retirement account. A qualified retirement account established pursuant to the Employee Retirement Income Security Act (ERISA) promulgated in 1974 are generally protected in full. These employer-sponsored retirement plans would include a 401K) plan, a 403(b) plan, a 457 plan, profi t-sharing plan, cash balance plan and other pension plans. It does not matter how much money you have in a qualified plan under ERISA. These accounts are even protected if you were to fi le for bankruptcy. There are situations where the assets might not be protected. For example, if you committed a crime, some of the assets might be vulnerable in order to reimburse the state that may have prosecuted you. A spouse in the context of a divorce would also have marital rights that would IRA’s are not protected by the federal government under ERISA. However, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 provides federal protection to IRA accounts up to $1,362,800. Monies rolled over from an ERISA qualifi ed retirement plan into a “rollover” IRA account may not be subject to these limits. There are restrictions with respect to IRA contributions within the fi ve-year period prior to fi ling for bankruptcy that are in excess of 7% of your income. Also, it is important to note that “inherited” IRA’s are not protection assets. If you are not fi ling for bankruptcy, each state has its own limits as to how much in an IRA account would be protected from creditors. Be sure to consult with an attorney fully versed in creditor protection rights and bankruptcy law if you are unsure as to whether or not your qualified retirement account, IRA or SEP/ IRA account is protected. This area of the law can be very confusing. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. ademic lessons taught in the classroom. From a cost standpoint, sports and other activity programs are an exceptional bargain when matched against the overall school district’s education budget. Examinations of various school districts’ budget information across the country reveal that activity programs make up very small percentages of school budgets. In the Advocate readership area’s public school districts of Everett, Malden, Revere and Saugus, this is the case, as well, as all four of the districts, for the upcoming 2022-23 school Former Everett High All-Scholastic Jason Maitre parlayed some outstanding athletic ability he honed as a Crimson Tide football All-Scholastic into a Football Scholarship at Boston College. (Courtesy Photo/Everett Football) Racing down the field for Malden High Golden Tornado soccer last season (Courtesy Photo/Malden HS girls’ soccer) year show between one and two percent of their complete school budgets committed to athletics and other extracurricular activities. That is between approximately $520,000 and $785,000 per school. Check out some of the major cities in the nation. Pre-COVID, in the 2019-20 school year, the city of Chicago’s Public School GRADUATES| FROM PAGE 5 mester since 2020, to earning Research 1 recognition as the premier Christian research university, to the ongoing successes of our athletics teams,” PresBoard of Education’s budget (the second largest U.S. school district) was $6.56 billion; the activity programs’ portion was $17.5 million, just two-tenths of one percent. In the Los Angeles, Calif., Unifi ed School District (the third largest school district in the national), activity programs received $7.3 million of the overall $7.7 billion budget for 201920, only one-tenth of one percent! In the Miami–Dade, Fla., School District (the fourth largest school district in the United States), its Board of Education had a 2019-20 overall budget of $5.45 billion, while setting aside $17.7 million for sports and all other activity programs, just over three-tenths of one percent. In all of these examples, the budget for school activity programs is less than one percent of the overall district’s budget. Considering the benefits, which are outlined below, at such small proportions of overall school district budgets, school activity programs are one of the most eff ective investments being made in secondary school education programs today. We will go right to the Mission Statement of the NFHS to reiterate the value and importance of participation in athletic and other extracurricular activities by student-athletes, because we know that they are all endorsed ident Livingstone said. “This is certainly one of the most joyful times of the year and that joy culminates with commencement. Alongside their families, we celebrate with our graduates as they receive their Bayby the districts in our readership area. The NFHS states: –We Believe– Student participation in education-based high school athletics and activities: • Is a privilege. • Enriches the educational experience. • Encourages academic achievement. • Promotes respect, integrity and sportsmanship. • Prepares for the future in a global community. • Develops leadership and life skills. • Fosters the inclusion of diverse populations. • Promotes healthy lifestyles and safe competition. • Encourages positive school/ community culture. • Should be fun. And it is far from being a budget-buster! In the long run, as it keeps students in school and working towards dreams and goal, it naturally makes the school budget-funded districts more effective and more successful. If students are now involved in school-based athletics and activities, keep them involved. If they are not participating at this time, get them involved! Being active in school-based athletics and/or activities can and will change and enhance student-athletes’ lives. lor degrees, head out into the world and let their lights shine wherever they go as proud Baylor Alumni.” For more information about Baylor University, visit www. baylor.edu.
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