401(k) Rules explained - Tax, Withdrawals, Loans, Rollovers, limits

What is 401(k) retirement savings plan ?

401(k) is a retirement savings plan for a working individual in United States of America. 401(k) plans are sponsored by your employer. In this post you will find out a quick overview of the rules and regulations and the most important things you need to know about 401(k) investments.

401(k) investment options

Money contributed to 401(k) plans is invested in various mutual funds investing in Stocks, Bonds or Money market investments. There are two types of 401(k) plans based on who has control on how the money is invested.

1. Participant-directed 401k plans - These are plans in which as an employee you can choose how much portion of your money is invested in which particular financial instrument. Most 401k plans are of this type.
   
2. Trustee-directed 401k plans- choice of investment options is made by the employer.

It is best to find out from your employer if your plan is indeed of the first type (the most common category).

401(k) tax exemption rules

It is important to understand the tax consequences of your 401(k) contributions. The key points to remember are:

1. Investments in 401(k) plans are tax deferred. i.e. you do not pay income tax on your 401(k) contributions (at the time of the contribution), but you pay tax at the time of withdrawal.
2. The returns on your 401(k) are tax-exempt : You earn from your 401(k) investments in the form of interest or dividend or capital gains. The biggest advantage of 401(k) retirement plans is that these earnings are not taxable.

401(k) rules for early withdrawals

1. Pay income tax on 401(k) withdrawals: As explained above in 401(k) tax rules, you have to pay tax on the 401(k) withdrawal amount when you withdraw money.
   
2. 401(k) hardship withdrawals: Many employers allow 401(k) withdrawals only if there is a financial hardship, e.g. 1) pay medical expenses, 2) pay college tuition fees, 3) for payment or installments etc. in order to avoid eviction or foreclosure of primary residence 4) for funeral of a family member. What exactly qualifies as financial hardship for the case of 401(k) withdrawals is decided by your employer usually based on predetermined criterion.
   
3. 10% Excise tax for premature 401(k) withdrawals: Withdrawals from your 401(k) account before you turn 59.5 years old and (while you are still in service of the company) involves a penalty in the form of 10% excise tax on the withdrawal amount. Note that this excise tax is in addition to the income tax you pay on the invested amount. However you do not have to pay this 10% excise tax in the case when you are leaving your company after you are 55 years old or if you become disabled.
   

401(k) rules for loans

Although direct withdrawals from 401(k) involve a penalty, several (but not all) 401(k) plans allow you to take a loan on your 401(k) contributions at a predetermined interest rates. The 401(k) rules for taking loan (if it is allowed) are as follows.

1. The amount of loan you can avail is the minimum of 50% of your 401(k) balance or $50,000.
2. The 401(k) loan has to be repaid in 5 years, unless it is meant for purchase of a primary residence.
3. In case you take a 401(k) loan and decide to quit your job, you may have to pay back the outstanding loan balance in full. Otherwise the outstanding balance may be treated as a premature 401(k) withdrawal and maybe subject to 10% excise tax as mention above.

401(k) maximum limit rules and regulations

There is a maximum limit on the amount you can invest in all 401(k) plans in a given year and it is the minimum of the following two:

1. The maximum percentage of contribution limit set by your employer.
2. The maximum 401(k) limit as prescribed by the federal government. The 2010 401(k) maximum contribution limit is $16,500 for employees below the age of 50 years and $5,500 for employees over the age of 50.

401(k) Rollover rules and options

You have the following options to deal with 401k contributions in case you retire, quit or change your job and do not want to leave your 401(k) assets with your former employer.

1. 401(k) Rollover Option 1: You can choose to rollover your entire 401(k) contribution to an IRA account, which you will have to setup before the rollover.
   
2. 401(k) Rollover Option 2: You may be able to make a rollover of your 401(k) assets to a retirement savings plan offered by your new employer (which could be another 401(k)).
3. 401(k) Rollover Option 3: You can choose to receive all your 401(k) assets, without making a rollover. However, remember that you will have to pay income tax according to 401(k) tax rules mentioned above. Moreover it is mandatory for your employer to withhold 20% on the amount of your 401(k) withdrawal for Federal Income tax. You are supposed to pay the remaining tax (after this 20% withholding) when you file your income tax return. In addition to the income tax, you also have to pay 10% excise tax if your age is below 59.5 years (as mentioned in 401(k) early withdrawal rules).
   

401(k)- additional benefits like matched contributions

Several employers, as part of their pay-package, match the contributions in 401(k) account. I.e. if you invest $1000, your employer will invest an additional $1000 on your behalf, thus doubling your investment. It is worth finding out if indeed your employer matches you 401(k) contribution by directly asking your employer.

External useful links related to 401(k) contributions IRS 401(k) plan What is Roth 401(k) plan? Additional details on 401(k) withdrawals Learn more about IRA - Individual Retirement Arrangements from IRS website. Income limits on Roth IRA contributions 401(k) fidelity - Fidelity Personal workplace and Investing is the largest provider of 401(k) plans in USA. Other posts related to Tax breaks, tax deductions and tax credits that you may find useful. New Car Purchase Auto Stimulus details explained- Excise and Sales Tax deduction for new purchase of new vehicles. Cars- Cash for Clunkers - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500. $8000 First Time Home Buyer Tax Credit details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama. $800 Making work pay tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers). $250 Social Security Stimulus Check in 2009 Economic Stimulus Package. 2009 Cobra Stimulus Package 65% Reduction in Cobra Health Insurance Premium for qualifying individuals. 2009 Stimulus Checks? Economic Stimulus Payment $1000 Child Tax Credit, Dependent Tax Credit 2009 extension. Disclaimer The author of this web page is neither a legal consultant nor a tax professional. This article on 401(k) retirement savings plan is meant only as a general outline and may contain inaccuracies or errors.

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Maruti Suzuki A-star review - Price, Mileage details

Maruti Suzuki A-Star review

This article is my own short review of Maruti-Suzuki A-star. This review contains details of A-star price, A-star features, A-star mileage and other factors that you need to consider if you are planning to buy a car. Perhaps before even beginning with the features I should start with

Maruti Suzuki A-star price

A-star comes in 3 variants. Lxi, Vxi, Zxi where Lxi being the base model and Zxi the top end model.

A-star Lxi on-road Price : Rs. 3.8 lakh (base model)
A-star Vxi on-road Price: Rs. 4.08 lakh
A-star Zxi on-road Price: Rs. 4.56 lakh. (top end model)

The prices given above are are on-road prices (i.e. the approximate final price you pay including taxes, insurance etc.) and are approximate. They may vary according to your region and other factors. For ex-showroom prices. Visit official website of A-star.

Three biggest plus points of A-star

1. A-star mileage: A-star gives a mileage of around 20 km / litre (of petrol) (under ideal conditions). This is among the best mileage in the market.
2. A-star is cost-effective: Even the top-end model of A-star, A-star zxi has an on-road price of around 4.5 lakh rupees. This is a very good deal considering the amount of features A-star has. (read below for details).
   
3. A-star reliability: A-star is exported by Maruti-Suzuki to Europe. Nissan buys A-star and resells it as Nissan Pixo. An advantage of this is that A-star confirms to European safety and quality standards. I think of this as a plus point.

The one big disadvantage of A-star

1. A-star space problem (internal design): A-star is small compact car and if you read reviews you will see that a lot of people complain about the shortage of space in the car. Indeed, the luggage space is short and you may find this a problem depending on your needs. As far as the leg-space or space for seating is concerned though, I think this is just fine, unless you are dealing with more than average obese people. So if you are looking for a family car where you want to carry lot of people or lot of luggage, perhaps it may be worthwhile considering other options. Have a look at a picture of the interior space for yourself

There is also another slight disadvantage, however this is a personal opinion. A-star's design is not among the best in the market. Especially the protruding headlights, I really think they could have done better. Compare this with Nissan Pixo, which is A-star car marketed by Nissan in the European markets. Below is how A-star looks. You can decide for yourself if you like it or not.

A-star fuel Options and A-star Mileage

A-star (unfortunately) comes only in the petrol option. Other fuel options like CNG, LPG or diesel would have made A-star an even more attractive choice. A-star gives a mileage of about 19.5 km per litre under ideal conditions (e.g. on highway).

A-star technical specifications and features

All A-star models come with basic features like Air-conditioner, power steering etc (visit A-star specifications for a detailed list).. The high end Zxi comes with a CD player, stereo system with 4 players, dual driver/passenger airbags. The engine capacity is about 1000cc which is slightly lower than other cars int he market, but enough for most purposes.

Posts related to Cars Maruti Suzuki A-star Hyundai i20 Hyundai i10 Hyundai Santro Fiat Punto

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India Income Tax Slabs - Direct Tax Code 2011-2012

New Direct Tax Code in 2011-2012, India

Government of India has proposed a new Direct Tax code or Direct Taxes Code to replace the old Indian Income Tax Act of 1961. This Direct Tax code is an attempt to simply the tax-life of an individual. The way it works is that the income tax slabs are increased, however several deductions (e.g. deduction on housing loan) and tax-breaks are taken away. A detailed post will be written about Direct Tax Code. Below you will find the proposed income tax slabs under the Direct Tax code will be debated in the Parliament and if approved, will be implemented in 2011-2012.

Income Tax rates or Tax Slabs under Direct Tax Code : Table

Direct Tax Code slabs, 2011-2012, Men

Income: upto 1.6 lacs	no income tax
Income : 1.6 lacs to 10 lacs	10 %
Income : 10 lacs to 25 lacs	20 %
Income : above 25 lacs	30 %

Direct Tax Code slabs 2011-2012, Women

Income : upto 1.9 lacs	NO TAX
Income : 1.9 lacs to 10 lacs	10 %
Income : 10 lacs to 25 lacs	20 %
Income : above 25 lacs	30 %

Direct Tax Code slabs 2011-2012, Senior Citizen

Income : upto 2.4 lacs	NO TAX
Income : 2.4 lacs to 10 lacs	10 %
Income : 10 lacs to 25 lacs	20 %
Income : above 25 lacs	30 %

Education cess and surcharge on total income tax

It is not clear whether education cess and surcharge will be applicable on income tax collected under direct tax code. According to the current indian income tax act, in addition to the income tax calculated according to the above income tax slabs, a 3% of Education cess is charged on the total Income tax paid (not on the total taxable income). If the taxable income exceeds Rs. 10 lacs, a 10% surcharge on the total income tax (not on the total taxable income) is also charged.

Posts related to Income Tax rates in India Direct Tax Code Rates 2011-2012 Income Tax Rates for year 2010-2011 Income Tax Rates for year 2009/2010 Income Tax Rates India - Financial Year 2008/2009 and 2009/2010. The IT slabs for 2009/2010 are the same as the slabs in 2008/2009. Income Tax Calculator - 2008/2009 (also good for A.Y. 2009/2010 since the tax slabs are unchanged for 2009/2010). This Income Tax Calculator is in Excel Spreadsheet format. India Income Tax deductions - Various Income Tax deductions under section 80C, section 80D, section 80DD, section 80G, section 80GG, section 80E, section 24, etc. and their max. tax exemption limits allowed under the Indian Income Tax Act discussed in this post. All Indian IT deductions in one single post. Tax deduction under Section 80C: The most common income tax deduction for Indians discussed in detail. Use this for your personal tax planning and save upto Rs. 33,000 Income Tax. How to pay your Indian Income Tax online? How to check your Income Tax Refund Status online?

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Income Tax Slabs 2010/2011 - Tax rates 10-11

Income Tax Rates 2010-2011

Below you will find Indian Income Tax slabs decleared in Budget 2010, for the financial year 2010-2011. These ITslabs have been increased slightly (i.e. the tax rate has been reduced) as compared to the IT slabs for 10-11. Below you will find a detailed table of Income Tax slabs for men, women, and senior citizen. These tax rates are applicable for the financial year 2010-2011, i.e. effective from 1st April 2010 to 31st March 2011.
You may also like to use the quick-easy-to-use this Income Tax Calculator on the website of IT department or download this Tax Calculator (Excel Spreadsheet) for calculating your tax for A.Y. 2010/2011.

Income Tax rates or Tax Slabs 10-11 : Table

Income Tax Slabs 2010/2011 for Men

Income: upto 1.6 lacs	no income tax
Income : 1.6 lacs to 5 lacs	10 %
Income : 5 lacs to 8 lacs	20 %
Income : above 8 lacs	30 %

Income Tax Rates 2010/2011 or Women

Income : upto 1.9 lacs	NO TAX
Income : 1.9 lacs to 5 lacs	10 %
Income : 5 lacs to 8 lacs	20 %
Income : above 8 lacs	30 %

Income Tax rates 2010/2011 for Senior Citizen

Income : upto 2.4 lacs	NO TAX
Income : 2.4 lacs to 5 lacs	10 %
Income : 5 lacs to 8 lacs	20 %
Income : above 8 lacs	30 %

Education cess and surcharge on total income tax

In addition to the income tax calculated according to the above income tax slabs, a 3% of Education cess will be charged on the total Income tax paid (not on the total taxable income). If the taxable income exceeds Rs. 10 lacs, a 10% surcharge on the total income tax (not on the total taxable income) is also charged.
Related: Indian Income Tax Act - Tax Deductions, Tax Exemptions, Section 80C,80D,80DD,80E, etc.

Posts related to Income Tax Rates India Direct Tax Code Rates 2011-2012 Income Tax Rates for year 2010-2011 Income Tax Rates for year 2009/2010 Income Tax Slabs India - Financial Year 2008/2009 and 2009/2010. The IT slabs for 2009/2010 are the same as the slabs in 2008/2009. Income Tax Calculator - 2008/2009 (also good for A.Y. 2009/2010 since the tax slabs are unchanged for 2009/2010). This Income Tax Calculator is in Excel Spreadsheet format. India Income Tax deductions - Various Income Tax deductions under section 80C, section 80D, section 80DD, section 80G, section 80GG, section 80E, section 24, etc. and their max. tax exemption limits allowed under the Indian Income Tax Act discussed in this post. All Indian IT deductions in one single post. Tax deduction under Section 80C: The most common income tax deduction for Indians discussed in detail. Use this for your personal tax planning and save upto Rs. 33,000 Income Tax. How to pay your Indian Income Tax online? How to check your Income Tax Refund Status online?

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My experience with earning from PTC sites.

You know PTC sites offer the opportunity to make money online in the easiest and simple way. There are numerous PTC sites in the Internet. A large number of people search in the Internet for a genuine PTC site since no skill required working with PTC sites. The terms PTC means Paid to Click. Paid to read mail is almost similar to PTC. Joining PTC is completely free. It is an online earning scheme without any investment.

How PTC site works:

Members get paid for clicking on ads or reading mail. Some PTC sites make payment for playing games or completing offers etc. There are two folds earning schemes. Members are paid for visiting websites or ads for a specific time limit and secondly for reefing others to join. Maximum PTC sites pay $0.01 for visiting a website or ad for 30 seconds. If some one joins though a member’s referral, the member will earn for referral visit. In most of the cases members earn 100% for each website your referrals view. Make sure you are log in with your username and passwords before visiting a wbsite and amount credited.

How much you can earn from PTC sites?

Remember it is not a get quick rich program. I am furnishing below an example:If you can collect 10 referrals and visit 10 websites per day you earning per day will be as follows:For visiting 10 websites per day = 10X.01=$0.10From your referrals you will earn=10X10X.01=$1.00Total=(1+.10) = $1.10 per day.You can increase your earning by referring more and more people. Referrals are the main source of earning. So try to collect as many referrals as you can.

How you will get your payment:

Maximum PTC sites may payment through Paypal or Alert pay. It is better to open your Paypal or Alert pay account before joining any PTC sites. Opening with Paypal or Alertpay is completely free. Once you collect the money in your Paypal or Alertpay account you can request for check. They will send payment when your balance accumulated to $10 or more.

Can you name a best PTC site:

Maximum PTC sites are fraud. They are very much reluctant to make payment to their members. Sometimes they unnecessarily delay in payment. So my warning to you before joking any PTC site test it first. Search in Google or yahoo with the words “Name of PTC site- scam”, “Name of PTC site- fraud”, “Name of PTC site- payment”, From the search result you can easily filter the PTC sites.. Frankly speaking my experience with PTC site is very bad. At first I joined a PTC sites named Adbux, next 5buxs.cn. Both of the sites did not pay me. I actually received payment from hits4pay.

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How to start Making Money for FREE

You might have reached this post because you are fed up with all the lies and money making scams online. You have been looking for job ideas and you want to learn no charge ways to make money but every where you turn there is a “system” that requires you to pay money upfront. When you do pay the fee, you find out it is just like the last make easy money scam you purchased.

For instance, stuffing envelopes from home would fall into this scam category. Maybe you have avoided paying anything so far and if so, good for you. You are ahead of the game because most other people start out by being scammed a couple of times.Many of these scams involve selling you “turnkey websites”. The word “turnkey” is one of the best advertising gimicky words ever created for scamers to take your money. Who wouldn’t like a website where all you have to do is turn a key and have money flow out of it? It sounds like one of the best all time ways to make money, doesn’t it? The problem is that there is no such thing no matter what anyone tells you. A turnkey website is just a website that has been put together for you. It is not magical and not special in any way and it won’t make you a dime unless you know how to drive traffic to it.

Many of these guru’s ”programs” and “systems” invlove giving you one of these turnkey websites and then hoping you will believe you are going to make easy money.So, lets assume you paid $97.99 or some other high price and you now have yourself a turnkey website. So what? There are hundreds of millions of websites out there on the Internet. Is your new website any different or better than all the others? No! Your website that you got from the “guru” with the fantastic claims of fast money will be getting zero visitors and making zero dollars.

Do you know how to get targeted traffic to that site so that it will make sales? Will the guru who you just paid that $97.99 to for this next to worthless site tell you? The only thing he might tell you is to go spend more money on Pay Per Click to get traffic. That is a mistake you don’t want to make and you may lose your shirt trying that.The end result is that you are left with your website that no one knows about and makes you nothing and you still have to pay $4.95 or $9.95 per month to keep it up with hosting. You have no clue how to get visitors to your site who will buy, the guru has gone on to scam others and won’t help you, and eventually you just give up. You are still no closer to finding any good ways to make money online. Sound familiar?

**Make Money Risk Free - Can It be done?

Now, you were probably searching for something like “how to make money without money” or “how to make money with no risk” or “ways to make easy money” ‘ways to make money in a recession” or even “free ways to make money online”. The result is that you found this post. You probably have been trying to figure out if there are any totally risk free ways to make money where you don’t have to pay anything up front. No investment, no charge, no credit card payment, totally free, with no possibility of being scammed.Even if you fail, you won’t be out a dime because they are free ways to make money. Sound about right?

Actually there are some free methods to make money on the Internet and they are how I got started. Now, none of these methods are going to make you rich or provide you even a part time job. They are just going to be stepping stones to getting you started making some free money online. Right now you might not think that is even possible depending on whether you have been scammed before and/or how much you have lost. I think the best course of action is to get that first payment, no matter how small, and then try to figure out how to make it bigger the next time. Remember, these are just the first steps to making money online.

Hopefully once you start making a little moeny then you can afford to reinvest that money and pay for a website or blog like this one and learn other ways to make more money on the Internet. I do want you to know, however, that if you ever want to make any decent money online (say maybe $200 a month and up), you are eventually going to have to spend some money. But that is OK if you have already made that money and are willing to reinvest it.

**The First Steps To Making Free Money Online

Your first step is to sign up to places that will never ask you for any payment or credit card. CashCrate is one of the first places I ever made money at and now I make $200 to $300 per month and I have never paid them a cent to join or participate. They pay me every month and it is money I can rely on. Please read my in-depth Cash Crate Review and see the quick video of one of my checks as proof. You won’t be making $200 at first but this is a good place to start for anyone over 13 years old. This is one of the great ways for teens to make money and start learning.

You never want to do just one thing to make money on the Internet because you don’t want to put all your eggs in one basket. CahsCrate is only one of many ways I make money and there are other similar sites like it. You might also sign up for Inbox Dollars and when you do they will start you out with $5.00 already in your account. They are a little different than CashCrate but you can make some free money there as well. Again, you want to spread yourself out and make as much as you can at each site. You might also like one or the other better or have more luck with one.

1) Inbox Dollars

2) CashCrate

**Your Next Steps To Making More Money Online

I will assume that you can make at least $40.00 from the two sites mentioned above and that will of course depend on how much time you spend. The next site is called Project Payday and it is different from the ones above.Project Payday is more like a work at home job than the other ones but you won’t need a blog or website to participate. It involves incentivized freebie websites and getting paid to try out trial offers from online advertisers. You will need to use a little of the $40.00 you made above but you will get most of it back and eventually more if you learn how to do it.

Project Payday will not be for everyone and you may either love it or hate it. There is work to this but you can realistically earn a couple of hundred dollars a day if you want to put in the effort. I have done a three part Project Payday review which you should read to understand more about the concept behind incentivized freebie websites and how you can make money with them. There are people that love this concept and do very well with it, but they do have to work at it.

**The Sneaky Way To Try Some Make Money Programs

Many of the systems you see so often that are so convincing come with money back guarantees. Now I have never bought anything with the intention of asking for my money back but if the system is total crap, I will ask for and get my money back with no guilt whatsoever. Any product that sells through ClickBank has an automatic 8 week money back guarantee and I have used it a couple of times when the product was not anything close to what the sales pitch said. So, in essence, you can try any product that is sold through ClickBank risk free. If you make money with it you can keep it and if you don’t you can get your money back.

One product that I believe to have some solid money making ideas is No Monkey Business. This is not one system but a variety of ways to make money and you can read my No Monkey Business review if you’d like to learn more. I like it because it contains many different ways you can make money on the Internet and not just one way so there is something in there for everyone. Again, if you get it and don’t think it provides value, (but I think it does) then you can get your money back so it really is risk free.

Another one you might try is not a ClickBank product but this one comes with a 365 day money back guarantee. It is as seen on TV’s Robert Allen’s Multiple Streams of Income and it has been around for over 5 years. Robert Allen has two NY Times best sellers that have sold over 2.5 million copies, over 150,000 people have attended his wealth seminars, and he has accepted challenges by the press and proven that his money making strategies work. You will get an enormous downloadable package of training materials for just $19.95 and you have that 365 day money back guarantee - I would call that risk free. I am certainly not saying to buy it and then ask for your money back but I am saying that this package is really no risk for you to try.

**In Conclusion

You really don’t have to spend an arm and a leg to get started earning some extra money online. You can choose to spend money if you have it and many do. Just don’t expect any overnight miracles with heaps of cash flowing in. Some people are successful but most are not because they are impatient, have too high expectations, discover it is too hard and involved, and ultimateley give up. Despite what you might have heard, there is very little easy money online and it takes work. If you want to make money from home and turn it into a work from home job, you have a long road ahead. But it can be done with patience and steady learning and it is possible to get started without any investment. Really it is…I did it!

Posted by CDFREELANCING

Lucrative List Building Business – How to Get Organized

Learn how to organize a lucrative list building business. A lucrative list building effort is a wonderful way to make your online business easier. Also, a lucrative list building business is a wonderful way to grow your online business in leaps and bounds, by creating a hungry base of individuals to whom you can mail offers and promotions.

So how do you use a lucrative list building business to make your online business easier and to grow your online business with ease?I have put together a list of some detailed new steps to help you to make your online business easier with a lucrative list building business.

Experiment with some incredible new ways to help you to make your online business easier with a lucrative list building business:

- to make your online business easier with a lucrative list building business, begin first by building a list of subscribers who have an interest in your niche market.

- to make your online business easier with a lucrative list building business, cultivate the list by mailing them regularly, and always sending them high value.

- to make your online business easier with a lucrative list building business, take steps to automate everything that you do. Anything you automate allows you the freedom to work once and get paid multiple times.

- to make your online business easier with a lucrative list building business, develop a network of other marketers with whom you can exchange offers, and grow your list.

Do you want to learn more about how I do it? I will Post more on this subject please check us out regularly or simply subscribe, and we will send every post to your email.

Posted by CDFREELANCING

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Taking Free Paid Surveys Online

Free Paid Surveys, Get Paid To Take Surveys, Take Online Surveys for CASH!More than likely you have seen ads like these all over the internet.

And like most people you are probably wondering if they are true. Can you really get paid to take surveys online? Or is paid surveys just another scam? Surprisingly, the answer is yes. You can actually get paid to take surveys online.There are many companies that will pay you to participate in online surveys, focus groups, and even product tests.

These are market research companies that are paid by large companies to find out what the public feels about their products. They want to know if their advertising camppagns are working and how everyday people feel about their products. Large corporations spend billions of dollars a year on advertising.

So to pay you a few dollars to find out if their advertising is working is not that big of a deal. So they hire these market research companies. And the market research companies send out surveys to everyday people to find out what the public is thinking.

There are also several misconceptions about taking paid surveys online. Many advertisements will tell you that you can make up to $250 an hour taking paid surveys. Although it is possible to be compensated $250 for participating in an important study or focus group, the average paid survey will pay you between $2 and $20.

There are also a few different kinds of paid survey sites. There are paid survey directories, or databases, and there are the actual paid survey companies. A paid survey, or market research company, is the actual company that will send you the paid surveys. And also the one that will compensate you for your participation.

An example of a paid survey company is NFO My Survey. NFO has been around for over 20 years and is one of the major paid survey companies on the internet. When joining a paid survey site like NFO you are notified by email when your participation in a paid survey is needed. You can then choose to take the paid survey or simply ignore it.

You are told how much you will be paid for taking each survey and how long the paid survey should take to complete. Companies like NFO My Survey are always free to join. A legitimate paid survey company will never ask you to pay a fee to join.Another type of site is a paid survey directory, or database. Paid survey databases provide directories of paid survey companies.

These are the sites you go to to find companies that will pay you to participate in online surveys. There are several databases you can join. But most online paid survey databases are not free. A site like SurveyScout charges about $35 for their directory of 490 paid survey companies. Others charge anywhere from $20 to $60 to access their paid surveys directory.

Many people are fooled into thinking that when they join these membership sites they will automatically start receiving paid surveys. A membership site like SurveyScout does not actually send paid surveys. they are only a directory of companies that you join that send paid surveys online.Before you spend $35 dollars for a paid survey database do some looking around.

A good paid survey directory will have everything you would find in a paid membership site and is absolutely free. There is no need to pay to find paid surveys. In fact, why would you want to pay for free information? Paid membership sites are simply taking advantage of the fact that most people don't know where to look for this type of information.

And once they pay and then find out that they paid for a directory, most people feel like they have been scammed. My advice would be to bypass a paid directory. And use a free paid survey directory.If you are looking for a full-time income online, paid surveys may not be the thing for you. Although you can make some good money taking paid surveys online, more than likely it will not be enough to make you rich.

On the other hand, if you want to make some extra money without much effort then paid surveys is the way to go.The key to getting paid to take surveys online is joining as many of these paid survey companies as possible. Most paid survey sites will only send a few paid surveys a month.So the logic is, the more paid survey companies you belong to the more paid survey invitations you will receive.

And the more money you will make. I'ts a good idea to start off with around 10 to 20 good paid survey companies. Each one will only take a few minutes to sign up for and is well worth it. There are around 500 paid survey companies you can join. And once you have joined the main ones you can go back and join others to receive even more paid surveys.

Of 500 paid survey companies I would have to say that there are about 50 that will send you paid surveys on a regular basis. The rest may only send one a month or even less. So starting with the top paid surveys is obviously the best way to go.You must answer a few screener questions before taking a survey to see if you fit the profile for the type of person the company is interested in.

After taking a few screeners you can start to see how you should answer to make yourself qualify. for instance, most paid survey screeners will ask you if you work in a certain industry, or any type of market research or advertising business. The answer to a question like this should almost always be no. They do not want people who know the market research business taking their surveys.

And you will almost always not qualify for the paid survey.Well now that you have all the information you need it's up to you to decide if paid surveys is for you or not.

If you are interested in paid surveys I highly reccommend NFO My Survey, Global Test Market, Survey Savvy, Survey Spot, E-Poll, ECN Research, Lightspeed Research, American Consumer opinion, Test Spin,GoZing surveys, Greenfield Online, and Opinion Outpost. There several more great paid survey sites. These are just my personal favorites.

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