Why is the program starting at age 14?
The United States of America Child Labor Law states that 14 is the youngest age an individual can work for wages. The younger a person is when they start the longer their account has to build compounded value.

Why the $250 to $800 range in tuition?
It is impractical to go lower than $250.00 because the overhead becomes too large a percentage of the tuition. IRAs are limited to five thousand five hundred dollars ($5,500) contribution per year (2014 IRS rules). The $800 tuition with a student take home pay of $5 per hour results in reaching this maximum amount. Sponsors / Parents may elect to have higher take home pay. Increasing the take home pay rate decreases the IRA savings contribution amount. The maximum allowed level is 1200 with a $17.25 per hour take home pay rate. The 1200 level results in 23 work hours per month. If your SE needs to receive a take home pay in excess of $20,663 per year the 1417Power program is not for you. 

Why don’t I just put money directly into my child’s Roth IRA?
You can’t! Your child MUST have a W-2 with box 1 income (wages). Trust incomes, and / or gifts, don’t work! Only wages subjected to taxation qualifies.

Can I sponsor someone younger than 14 years old?
Yes. 1417Power offers a prepayment program that can be started as young as 2 months old. The benefits of early start is maximizing the discount and spreading the cost over a longer period, which results in the lowest monthly payment. As an example: Enrolling a 1 year old in the 800 level for 36 months would result in a $120 per month prepayment fee. The program provides for a 2% discount in the total price for each full year of pre-enrollment. Please see the discount documents for more details.

Are there any discount programs?
Yes, there are four (4) discount programs. There is a group discount program, an employer discount program, a monthly prepayment discount program, and a lump sum prepayment program. 

How do the credit programs work?
There are two credit programs, a referral credit program and a 1417Pulse net revenue share credit program. These programs increase the SE’s level and / or duration of participation.

If your referral prospect becomes a client you receive 25% of their 3rd month’s cash payment as a credit. If your referral refers a prospect that becomes a client you receive 5% of their 3rd month’s cash payment as a credit.

1417Pulse markets 1417Power market intelligence services. 30% of 1417Pulse net revenue is applied to a credit pool. Each SE is credit with one point for each properly completed survey during the period. The SE’s share of this credit pool is determined by dividing the SE’s total points by the total of all SE’s qualified points.

Using credits is limited to 30% of the qualified amount in any month. If you participate in the prepayment discount program, credits are accumulated until the SE starts active participation. The qualified amount is the SE’s participation level prior to apply any credits.
Credits can result in increasing the SE’s take home pay and IRA contribution by 30%. This could result in the total taxes, take home pay and IRA contribution exceeding the fees paid by the sponsor(s). 

What will my teenager be doing?
Your teenager will be enrolled and employed by 1417Power to perform tasks such as: 

• Completing educational modules in life skills development
• Scoring products and services based on their own preferences
• Assisting in the design of survey questions to aid in making them more acceptable and understandable to the target audience
• Quality assurance functions which may include confirming responses, editing the database, or scoring responses
• Developing suggestions for products or services to study

What hours will my child work?
Student-Employees can work any time during the hours and days you have authorized inside the federal and applicable state Child Labor Law allowed work periods for your child’s state of residence. Your child will work from their home by login into 1417Power’s on-line system. This “clocks them in”. They will select a task to perform and if they make any entry within 10 minutes their session will stay active. If there is no activity, the system will clock them out, and log them off.

Work sessions are limited to 2 hours. At the two (2) hour time limit, the system will gently log them off and clock them out.

Once your teenager achieves their target hours for each pay period, they will be notified they have complete this period’s required hours and there will be no more sessions available until next pay period.

Where does the tuition fee go?
Let’s begin with the chart below: 1417Power charges tuition ranging from $250 to $800 per month. (This fee is distributed as follows Example is based on the 800 level)

1417Power sends some of the tuition directly to the Student Employee’s Roth IRA, thus allowing you to keep the contribution at the maximum allowable by law. Additionally, our clients can qualify for tuition credits. 1417Power provides tuition credits for referrals, and profit sharing in net profits from the market survey products that are produced by the Student Employee work efforts. These credits can reach 30% of the tuition. For clients that maximize their credits, the sum of the Roth IRA, taxes and take home pay amounts to 2% more than the tuition paid in. 

1417Power has developed extensive databases, applications and website presentations to provide the needed administration of the education programs, attendance management, and wage administration. These run on web servers that provide the services for our clients. Additionally, we have found most prospects need the services of: Sales and Customer Support to become clients. Needless to say these services all have costs.

What is the data used for? 
1417Power uses proprietary applications and databases to collect demographic, market preference, opinion, and other information of the 14 to 17 year old market. Our database uses encryption, reference keys, and other computer science technology to ensure individual privacy. Only “blind” data is made available to clients. Our sister company 1417Pulse markets survey services to companies that may find it useful in determining their target market consumer preferences. 1417Pulse may provide survey service to companies such as Apple, Kellogg, Abercrombie & Fitch, Nike, and others.

Can I change my level of participation? 
Yes, you can change up or down at any time. Simply go on line to your sponsorship account and change your level of participation for the next month. Your funding amount and your teenager’s enrollment and work hours will be adjusted. Changes are limited to being made prior to the 15th of each month for the next month. Once changed, 1417Power will continue your participation at this new level until you change your level again.

How do I stop participating in this program?
1417Power prefers notification of your intention to terminate, however, termination is 100% in your control. To terminate, simply don’t fund your account. Account funding is due by the 15th of each month for enrollment the following month, funding is late by the 20th. 1417Power will notify you with reminders daily until you either notify 1417Power of your desire to suspend or terminate your participation or until your funds are received. If funds are not received by the 25th, participation will be suspended and your teenager will be notified, their enrollment is suspended starting the 1st of next month.

How long can we participate in this program?
You and your teenager may participate as long as you want. However, you should make sure your dependent is eligible for ROTH IRA participation. The US Federal Government regulates the ROTH IRA rules. The current laws require that to fund a ROTH IRA the account owner must:

• Receive qualified income (wages reported on a W-2 box 1)
• ROTH contributions cannot exceed the lesser of $5,500 or W-2 compensation 
  (Form W-2 box 1)
• Typically not be covered by other programs such as 401K, defined pensions, etc.

You are responsible to determine if your dependent is eligible for ROTH IRA participation. If your dependent is eligible you may continue with this program without limit in age or years of participation.

Can 1417Power change to rules of the ROTH IRA program?
No! ROTH IRA is a US Federal Government law. 1417Power has no influence or control over how YOUR government functions. 

Are there any other benefits?
Yes, 1417Power offers two incentive programs:

• We offer 20% of the fourth month’s tuition for every referral you provide, plus 5% of the fourth month’s tuition for every referral your referral’s provide as a credit towards up to 30% of future month’s tuition*.
• We place 30% of the revenue received from the survey business in a pool which is distributed prorated based your cash tuition paid in the period as a percentage of all cash tuition paid by all qualified participants as a credit towards up to 30% of future month’s tuition*. There are qualification requirements, such as: a minimum of participation during the three (3) proceeding months, meeting work quality requirements, and meeting attendance standards.

Who is 1417Power?
1417Power is part of 1417LLC, a Tennessee Limited Liability Corporation. It was founded by the founder of Interface Solutions, Inc. a Tennessee “C” corporation founded in 1981. It is located in Brentwood, TN. As a result of trying to find a way to leave a financial legacy for his grandchildren, the founder used his experience in business and systems to develop this unique solution. As they say: “Necessity is the mother of invention.” 

Why have other parents (or Grandparents) joined this program?
This program can be great character building for their teenager. The teenager gets real life experience in working, saving, budget management, etc. plus a head start on building a resume. It also could contribute to building self-esteem.

This program is the best opportunity for the sponsor to leave a significant financial legacy for their children, grandchildren or other individual to whom it is desired to leave such a legacy. For less than the lease cost of a mid-size SUV, you can endow your sponsored child with the potential to amass over four million dollars*! 

The cost of doing this themselves by creating their own company can be more than the cost of 1417Power’s program, and may subject you to IRS scrutiny, plus the 1417Power program is copyrighted and patent applied for. If you are a business owner, this program could become a benefit that is totally deductible as an expense for your business (check with your tax advisor or tax professional).

How do I start participation in this program?
Simply follow the instructions for "Request a Proposal".

The application includes the terms and conditions of the relationship between 1417Power and you as the sponsor and 1417Power and your teenager. It may include a Child Labor Permit application for states requiring such processes.

You will be required to open a ROTH IRA at any brokerage you desire (e.g. E*Trade, Schwab, TD Ameritrade, Scottrade, Edward Jones, Fidelity, T.RonePrice, etc.)
1714Power uses PAYCHEX® for processing payroll. They will make direct deposit, to a debit card or your teenager’s bank account. They do all the tax calculations, make withholding deposits, and will make the automatic deposit to your teenager’s ROTH IRA account.

Why should I start Now?
If your prospective Student Employee (“SE”) is 14 or older, and otherwise qualifies for a ROTH IRA, regardless of their age, you should enroll in 1417Power’s Wealth and Character building program soon. The difference between enrolling now versus a year from now could be $247,190* or even more. 

If your prospective SE is younger than 14 the monthly prepayment discount program offers you a method to lower your monthly cost. As an example starting monthly prepayment program two years before the SE begins participation would reduce the $775 monthly fee for a 36 month participation to $446.40 monthly fee paid over 5 years.

Please see the Document Library at www.1417Power.com for ROTH IRA, Parent Sponsor Policy Manual, Student Employee Policies, and the terms and conditions for more detailed information.

The idea of funding a Roth IRA for a child is not new. Forbes Magazine has advocated this for years. They have a few suggestions for how to meet the earned wage requirements. Let’s review their suggestions:

Have your teenager earn traditional money: At the minimum wage a teenager would have to work 690 hours per year to reach the Roth IRA maximum (versus 1417Power’s 174 hours). Plus, almost all traditional jobs require the child to be at least 17. This loss of three years in the tax free compounding Roth IRA could result in the loss of over a million dollars in future value.

The Child earns income from neighbors etc. doing babysitting, yard work: Most 14 and 17 year olds earning this type of income don’t report this as self-employment income and are not paying payroll and withholding taxes, so this really doesn’t count. But if they were to report this income as self-employment income, then they would become subject to payroll taxation, federal and state Child Labor Laws and federal Fair Wage Standards. Technically it is illegal for a 14 year old to babysit past 9 PM (Per federal Child Labor Law). Therefore, following this plan can end up being a costly complex “solution”. Remember, they have to report this as income, and by doing so they open the door to tax audits, and all the applicable laws.

If you run your own business: Yes, this might work. But, then your business must meet all the child labor law requirements. 1417Power employs your child and pays in excess of $24 per hour. How would family favored wage rates impact your other employees? Could it become a new minimum wage in a collective bargaining situation? How does having a child in your work environment impact your insurance costs? Could you pass the IRS normal and customary wage rate test? The list of issues and concerns are endless.

This document is summary information only. The relationship between the parties will be governed by agreements.
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