"Bush Construction is honored to be recognized by the Better Business Bureau for our unique approach to ethics and integrity.  Respecting our vendors like business partners while consistently delivering on our commitments to clients has been and will continue to be keys to Bush Construction's success." - A.J. Loss, President

"We were flattered merely to be nominated for this prestigious award.  To be a recipient is truly gratifying, as it confirms the high standards of integrity our employees uphold every day." - Greg Gannon, President/CEO

"At D'Souza-Krutzfeldt Q.C. Dentistry, we believe integrity is about treating people responsibly and with respect." - Dr. Joseph D'Souza, President

"Humility of Mary Housing & Shelter demonstrates integrity through our relationships with our guests/participants, vendors, funders, donors and community as a whole through ethical interactions and transparent and responsible fiscal and financial policies. We believe strongly in ensuring that the people we serve are aware of our mission and aware of their own rights as consumers of our services. Integrity is at the heart of our commitment to the people and community we serve."  - Julie Bockenstedt, Executive Director

"Integrity is one of Kaplan University's core values, and we hold ourselves to the highest ethical standards in everything we do. This includes our commitment to student success as well as our commitment to give back to our local community. It is an honor to be recognized with the 2014 Better Business Bureau Integrity Award for something we feel so strongly about." - Lisa Zerbonia, President Kaplan University, Davenport Campus

"It is fair to say that we have a passion and are on a quest to provide the best customer service possible - to turn the table on the reputation of poor customer service and integrity the basement waterproofing, construction and remodeling industry sometimes has. Our goal at MidAmerica Basement Systems is not just to provide good, honest service, but to set and keep improving the standard for customer service and integrity in our industry." - Howard J. Tatge, President

I have yet to meet anyone who thinks they're saving too much money for retirement. On the contrary, most people admit they're probably setting aside too little. Retirement accounts must compete with daily expenses, saving up for a home, college and unexpected emergencies for every precious dollar.

If taking money out of your IRA, 401(k) or other tax-sheltered plan is your best or only option, you should be aware of the possible impacts on your taxes and long-term savings objectives before raiding your nest egg:

401(k) loans. Many 401(k) plans allow participants to borrow from their account to buy a home, pay for education, medical expenses or other special circumstances. Generally, you may be allowed to borrow up to half your vested balance up to a maximum of $50,000 - or a reduced amount if you have other outstanding plan loans.

Loans usually must be repaid within five years, although you may have longer if you're using the loan to purchase your primary residence.

Potential drawbacks to 401(k) loans include :

• If you leave your job, even involuntarily, you must pay off the loan immediately (usually within 30 to 90 days) or you'll owe income tax on the remainder - as well as a 10 percent early distribution penalty if you're under age 59 ½.
• Loans cannot be rolled over into a new account.
• Some plans don't allow new contributions until outstanding loans are repaid.
• Many people, faced with a monthly loan payment, reduce their 401(k) contributions, thereby significantly reducing their potential long-term account balance and earnings.
• Your account value will be lower while repaying your loan, which means you'll miss out on market upswings.

401(k) and IRA withdrawals. Many 401(k) plans allow hardship withdrawals to pay for certain medical or higher education expenses, funerals, buying or repairing your home or to prevent eviction or foreclosure. You'll owe income tax on the withdrawal - plus an additional 10 percent penalty if you're younger than 59 ½, in most cases.

Traditional IRAs allow withdrawals at any time for any reason. However, you'll pay income tax on the withdrawal - plus the 10 percent penalty as well, with certain exceptions. With Roth IRAs, you can withdraw contributions at any time, since they've already been taxed. However, to withdraw earnings without penalty you must be at least 59 ½ and the funds must have been in the account for at least five years.

To learn more about how the IRS treats 401(k) and IRA loans and withdrawals, visit www.irs.gov.

Further financial implications. With 401(k) and traditional IRA withdrawals, the money is added to your taxable income, which could bump you into a higher tax bracket or even jeopardize certain tax credits, deductions and exemptions that are tied to your adjusted gross income. All told, you could end up paying half or more of your withdrawal in taxes, penalties and lost or reduced tax benefits.

Losing compound earnings. Finally, if you borrow or withdraw your retirement savings, you'll sacrifice the power of compounding, where interest earned on your savings is reinvested and in turn generates more earnings. You'll forfeit any gains those funds would have earned for you, which over a couple of decades could add up to tens or hundreds of thousands of dollars in lost income.

Bottom line: Carefully consider the potential downsides before tapping your retirement savings for anything other than retirement itself. If that's your only recourse, consult a financial professional about the tax implications.

Board says Fair Tax needed to lower taxes for the majority of Rock Island County families and save communities from devastating and unprecedented cuts to local services

Rock Island, IL -By an overwhelming majority, the Rock Island County Board passed a resolution this evening calling on lawmakers in Springfield to pass the Fair Tax Act (HJRCA 33/SJRCA 40) as a necessary first step to bring fairness to Illinois' tax code and to avoid devastating and unprecedented cuts to local services.  Right now, Illinois has an unfair tax system in which low and middle income families pay a rate that is twice the rate of the very rich, when factoring in all state and local taxes paid.

The resolution specifically endorses a "Fair Tax - with lower rates for lower incomes and higher rates for higher incomes" that would "lower taxes for the majority of Rock Island County residents and put more money into our local economy."

"Springfield's cheating our middle class families, holding back our economy, and jeopardizing our way of life here in Rock Island County,"said board member Brian Vyncke. "It's time for fundamental budget and tax reform that includes a Fair Tax, which means a tax cut for Rock Island families."

Vyncke noted that Rock Island County competes with its neighbor to the west.  He referenced data presented at last week's Governmental Affair Committee meeting that showed Iowa, which has a Fair Tax, has an unemployment rate that is half of Illinois'.  Scott County, IA has sales and property tax rates that are much lower on average that those in Rock Island County.

"We need to grow on this side of the river.  We need to make sure families choose to work, shop, and live here in Rock Island County and not head over the bridge to Iowa, which has a Fair Tax," said Vyncke.

Board member Don Jacobs noted that the county has already lost $500,000 from the state this year, which included cuts to the state's attorney's office.

"Today it's cuts to public safety. Tomorrow it will be more cuts to public safety and also to our schools, and our roads, services for our seniors, and all the other things that drive Rock Island County's economy and make our communities livable," said Jacobs.  "That's unless Springfield moves forward on the Fair Tax Act."

Mike Malmstrom attended this evening's hearing to offer his support for the Fair Tax resolution.  Mike is a veteran who is concerned about cuts to state programs that assist Illinois' veterans and those who have served in our Armed Forces.  Mike works to make sure Illinois' veterans are not homeless.  His son earned free college tuition from the state after serving in Afghanistan.

"Middle class folks like me will get a tax cut with a Fair Tax and could use one, but the state should not abandon our veterans just because millionaires want a tax cut too," said Malmstrom.

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It remains one of the greatest travesties in the history of American business: In 2001, the 85,000 employees of one of the world's largest accounting firms began losing their jobs in droves. Their employer had become tainted by its loose association with Enron  Corp., a financial house of cards that was imploding and taking with it billions of dollars in employee pensions and shareholder investments.

In 2002, accounting firm Arthur Andersen was convicted of charges related to Enron's fraudulent practices. The charges had nothing to do with the quality of their auditing - or any of Enron's illicit practices. The conviction was appealed, and in 2005, the U.S. Supreme Court struck it down in a unanimous vote. But the damage had already been done.

To date, despite millions of records being subpoenaed, there is no evidence Arthur Andersen ever did anything wrong. Still, perceptions are everything: Most people are not aware that the accounting firm, which led the industry in establishing strict, high standards, became a government scapegoat.

When I speak to groups across the country, I ask the following questions. Below are the typical responses I receive - and the actual facts.

1. What do you remember about Arthur Andersen?

Typical Response: They were the ones that helped facilitate the Enron fraud. They deserved what they got.

Fact: Arthur Andersen was the largest and most prestigious firm in the country. It was considered the gold standard of the accounting profession by the business community.

2. For what was Arthur Andersen indicted?

Typical Response: They messed up the audit of Enron and signed off on false financial statements.

Fact: They were indicted for shredding documents. These documents were drafts and other items that do not support the final product. All accounting firms establish policies for routinely shredding such documents.

3. How long was it between the Enron blowup and when Arthur Andersen went out of business?

Typical Response: One to three years.

Fact: The largest accounting firm in the world was gone in 90 days.

4. Was the indictment upheld?

Typical Response: Yes, that is why they went out of business.

Fact: No. The Supreme Court overruled the lower court in a 9-0 decision, and came to the conclusion within weeks, making it one of their quickest decisions ever.

5. How many people lost their jobs as a result of the false accusations?

Typical Response: Have no idea, but the partners got what they deserved.

Fact: Eighty-five thousand people lost their jobs and only a few thousand were partners. Most were staff people and clericals who made modest sums of money.

6. Who benefited from Arthur Andersen going out of business?

Typical Response: Everyone - we finally got rid of those crooks and made a statement to the rest of business to operate ethically.

Facts: It was not the Arthur Andersen people; they lost their jobs. It was not the clients; they had to go through the stress and expense of finding a new auditing firm. It was not the business world in general: It now has fewer firms from which to choose and rates increased. It was their competitors who benefited- they got Andersen's best people and clients and were able to increase their rates and profitability.

7. What accounting firms now have ex Arthur Andersen partners playing leadership roles in their firms?

Typical Response: None

Facts: The "big four," all the large middle-tier firms and many small firms have former Arthur Andersen partners in leadership positions. Finally, many members of the new Public Accounting oversight Board (PCAOB), which oversees these firms, now have former Arthur Andersen people involved in reviewing the quality of these firms.

About Larry Katzen

Larry Katzen, author of "And You Thought Accountants were Boring - My Life Inside Arthur Andersen," (www.LarryRKatzen.com), worked at Arthur Andersen from 1967 to 2002, quickly rising through the ranks to become a partner at age 30. His new memoir details the government's unjust persecution of a company known for maintaining the highest standards.