FAQ

Where does the Tuition Fee go?

1417Power charges tuition ranging from $250 to $800 per month. (This fee is distributed as follows (Example is based on the 925 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.

How is the money used?

Where the Money Goes	Percentage of Fee Paid
To the Student Employee’s Roth IRA	48.90%
To Employee Pay	13.31%
Required Federal Income Withholding Tax	0.00%
Employee Social Security	3.14% (6.42% of gross pay)
Employee Medicare	0.71% (1.45% of gross pay)
Employee Take Home Pay	9.46% (17.25% of gross pay)
Company Social Security	3.14%
Company Medicare	0.79%
Company SUI, FUI	1.25%
Worker Comp Ins, and Payroll Processing Fees	1.68%
Percentage of Tuition used for Employment & Roth IRA	72.17%
Company UI (State & Federal)	3.10%
Percentage of Tuition used for Employment & Roth IRA after typical disocunt	84.23%
Percentage of Tuition used for Employment & Roth IRA after typical disocunt and maximum 30% credits	109.50%

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 the 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 the 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 on 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 Others Joined this Program?

This program can be a great character builder 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 individuals 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 Participating 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 and Others by Babysitting, Yardwork, Etc...:

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 $22 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.

Frequently Asked Questions

Why is the $250 to $925 Range in Tuition?

Why does the Program Start at Age 14?

Can I Sponsor Someone Younger than 14 Years Old?

Why don't I put Money Directly into my Child's Roth IRA?

Are there any Discount Programs?

How do the Credit Programs Work?

What Hours will my Child Work?