GM recall: 10 things you need to know

GM has recalled 2.2 million cars, including the Chevrolet HHR, over a defect in the ignition switch that can turn the car off unexpectedly when it's on the road.

NEW YORK (CNNMoney)

That major recall combined with others means General Motors has announced recalls of nearly 4.8 million vehicles so far this year.

As the company's new CEO Mary Barra prepares to testify on the recall before Congress this week, new details and questions continue to emerge.

Here's what we know so far:

What's the problem? The cars' ignition switch, where the key is inserted and turned to start the car, can easily be knocked out of the "Run" position into the "Off" or "Accessory" position. This can happen if the key is jostled by a driver's knee, for instance, or if the car hits a bumpy patch of road. The loss of power means the power braking and steering, as well as the airbags, can stop working.

What cars are involved? The cars involved in the recall are the Chevrolet Cobalt and HHR, Pontiac G5 and Solstice and the Saturn Ion and Sky. Initially, the recall involved model years 2003 through 2007. Not all of these models were available through all of those model years.

On March 28, GM recalled model years 2008 through 2011 because about 90,000 faulty switches were used to repair some of those vehicles. Barra said the move was "out of an abundance of caution."

Of the 2.6 million cars recalled worldwide, 2.2 million are in the United States.

How many people have been killed? GM acknowledges that at least 13 deaths are linked to this problem.

The non-profit Center for Auto Safety says there may be as many as 303 deaths that could be tied to the defect. But the organization simply counted every fatal crash these cars had where the airbags failed to deploy.

GM says the report misrepresents raw information about crashes.

It's important to keep in mind that there are many reasons airbags don't deploy in a crash, beyond an ignition switch failure. So the 303 figure doesn't tell us much.

All we can say, for now, is that the number of fatalities is probably somewhere between 13 and 303.

How long did GM know about this? GM engineers experienced a seemingly related problem when it was testing a Saturn Ion in 2001. Internal reports from GM indicate that the problem was solved with a redesigned switch.

In 2004, however, another GM engineer driving a Chevrolet Cobalt hit the key and accidentally shut the car off. That is apparently the first time GM became aware of the problem that ultimately caused this recall.

Related: Documents show regulator first proposed GM probe in 2007

Why did it take GM so long to recall these cars? When the problem first surfaced it wasn't thought to be a safety issue, according to documents GM shared with the National Highway Traffic Safety Administration. Drivers could still still steer and stop the car and they could restart it.

GM says its safety engineers weren't aware of any deaths as a result of this issue until 2007. It then took GM engineers years to trace the problem back to a defective ignition switch, according to the papers.

Will GM be held accountable? Currently, GM faces a criminal probe by the Justice Department as well as investigations by Congress into this delayed recall. The National Highway Traffic Safety Administration is also looking into whether GM recalled the cars quickly enough. GM could be fined as much as $35 million if it decides it didn't act quickly enough.

There are also a number civil lawsuits filed on behalf of people killed and injured in crashes.

Related: Consumer Reports' Top Pick cars

How come NHTSA wasn't on this sooner? The National Highway Traffic Safety Administration has a massive database of fatal car crashes that happen throughout the United States. The agency also collects consumer complaints about potential safety issues. Still, NHTSA failed to notice a trend of deaths attributable to this problem. In its defense, NHTSA points out that finding trends within such a tremendous amount of data can be difficult.

How will the ignition problem be fixed? These cars were built using a defective ignition switch. A better ignition switch was installed in cars built after the 2007 model year. GM dealers will replace the defective ignition switch in the recalled cars with the new, redesigned switch.

When can my car be fixed? GM says repairs will begin April 7, citing the time it takes to manufacture and distribute such a large number of ignition switches. If you have one of the models that came with the faulty switch installed, you should have already received a letter alerting you to the recall. Customers in the most recent expansion of the recall will receive a letter in April, the company said. Another letter will arrive later telling you to make an appointment to get your car fixed.

I'm worried. Should I stop driving my car? For now, GM advises drivers to make sure that there isn't anything hanging from their car key that could knock it out of place.

An attorney representing the owners of a GM car has asked a federal judge in Texas to force General Motors to tell drivers their recalled cars are not safe and to stop driving them.

GM dealers are authorized to provide loaner cars to owners who are really scared about this issue. That will be handled on a case-by-case basis.

First Published: March 30, 2014: 6:04 PM ET

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Michael Lewis: Markets are 'rigged'

NEW YORK (CNNMoney)

"Flash Boys: A Wall Street Revolt" explains how several insiders discover these firms are gaining an advantage over others: lightning-fast trades achieved through automation and advanced computer networks.

"The United States stock market, the most iconic market in global capitalism, is rigged ... by a combination of the stock exchanges, the big Wall Street banks and high-frequency traders," he said in an interview with CBS' 60 Minutes.

The victims, he said, are "everybody who has an investment in the stock market."

"The insiders are able to move faster than you and play it against orders in ways you don't understand," Lewis said.

Related: Business Wire ends feed to high speed traders

The high-frequency trading industry has seen less scrutiny than other parts of the financial system, but regulators are turning their attention to it. The New York attorney general has pushed back on firms that feed high-frequency traders. They've also looked into -- and even shut down -- paid subscription services that feed financial results directly into the traders' computers.

It's too early to be certain, but the Wall Street culture may be starting to shift. In mid-March, for example, Goldman Sachs Chief Operating Officer Gary Cohn said his bank supports reforms to reduce the "fragmentation and complexity" of trading -- essentially, to level the playing field.

Related: Will stocks 'keep calm and carry on?'

Lewis is a former Wall Street insider himself who wrote about his experiences in the best-selling book "Liars Poker," which he followed by others including "Moneyball." The movie rights to another, his 2010 hit "The Big Short," were recently purchased by Paramount Pictures and Brad Pitt's Plan B movie house.

"Flash Boys" is set for release on Monday.

First Published: March 30, 2014: 8:03 PM ET

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Documents show regulator first proposed GM probe in 2007

GM CEO Mary Barra will testify before a congressional panel on Tuesday.

NEW YORK (CNNMoney)

That's according to investigators for a House committee probing why the recall didn't happen sooner.

An official with the National Highway Traffic Safety Administration urged his colleagues to open the investigation after noticing "a pattern of reported (airbag) non-deployments" involving Chevrolet Cobalts and Saturn Ions.

Those two models and four others comprise a recall that now totals 2.2 million vehicles in the U.S. The vehicles include the Chevrolet Cobalt and HHR, Pontiac G5 and Solstice and the Saturn Ion and Sky. GM said model years 2003 through 2007 were delivered with the faulty ignition switches, and model years 2008 through 2011 could have had faulty parts installed as replacements.

Related: GM recall was delayed by internal miscues

The vehicles' ignition switches can be bumped into the "Off" or "Accessory" position while the vehicle is running, disabling the power steering, power braking and airbags.

The issue has been tied to 13 deaths.

When was GM aware? General Motors (GM, Fortune 500) has conceded some engineers first noticed the issue as early as 2004.

The House report says GM knew the ignition switch was sub-standard even earlier. Officials at Delphi, which supplied the part, told investigators "that GM approved the (part) even though sample testing of the ignition switch torque was below the original specifications set by GM."

In addition to the proposed investigation in 2007, regulators considered a probe in 2010. Again, they "determined the data did not show a trend," according to the report.

The House committee cautioned the timeline was "preliminary and incomplete" because it expects to receive additional documents. It said it has so far "received and reviewed over 200,000 pages of documents from GM and approximately 6,000 pages from NHTSA" and held meetings with officials from the government, General Motors and GM suppliers.

Related: U.S. attorney investigating GM recall

GM CEO Mary Barra and NHTSA acting administrator David Friedman will testify before the House panel on Tuesday and a Senate committee on Wednesday.

NHTSA did not immediately respond to requests for comment on Sunday.

Although it first announced the recall in February, GM said parts to repair the vehicles will not be available until April. It told customers their vehicles are safe to drive if they remove all objects except the vehicle's key from the keychain.

First Published: March 30, 2014: 6:01 PM ET

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GM adds 824,000 vehicles to recall

NEW YORK (CNNMoney)

Until today the recall included the Chevrolet Cobalt and HHR, the Pontiac G5 and Solstice, and Saturn Ion and Sky through model year 2007. Now the company is including all model years of those vehicles because faulty switches could have been installed as a repair after owners purchased one of the newer models.

About 95,000 faulty switches were sold to dealers and wholesalers and about 90,000 of those were used to make repairs, the company said.

The new recall adds to the 1.4 million vehicles already recalled in the United States.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags. At least 12 deaths have been attributed to the issue. Although GM has recalled the vehicles, it has said they are still safe to drive if owners remove any extra weight from key rings.

Related: GM's steps to a recall nightmare

"Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn't practical," said CEO Mary Barra in statement. "Out of an abundance of caution, we are recalling the rest of the model years," she said.

GM has been criticized for how it has handled the recall because it has admitted that some employees were aware of problems with the ignition switch in small cars at least as early as 2004. Barra will testify before a U.S. congressional subcommittee on April 1 as part of an investigation into the automaker's handling of the flawed ignition switch.

Owners who may have had a suspect part installed in their cars will receive a letter the week of April 21, according to the company. GM (GM, Fortune 500) dealers will replace the ignition switch for free and customers who had paid to have the switch replaced previously will be eligible for a reimbursement.

The National Highway Traffic Safety Commission urges impacted drivers to have their vehicles repaired promptly after receiving the notification from GM. In the meantime, the group advises them to follow GM's recommendation to use only the ignition key with nothing else on the key ring when driving the vehicle.

First Published: March 28, 2014: 6:16 PM ET

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GM's recall problems grow

NEW YORK (CNNMoney)

Late in the day, GM said it had recalled 172,000 Chevrolet Cruzes "to replace a right front axle half shaft that can fracture and separate without warning during normal driving."

Hours earlier, the automaker said it had told dealers to stop selling those Cruzes but did not disclose what the problem was.

The recall covers some 2013 and 2014 models with the 1.4-liter turbo engine, the most popular version of the compact car.

The Cruze is GM's best selling car model in the United States, and is also sold internationally.

Even more seriously, General Motors is contending with a damaging recall of millions of other cars because of an ignition switch flaw linked to fatal crashes.

In fact, GM expanded its ignition switch recall on Friday to add 824,000 cars sold in the United States between 2008 and 2011. Until then, that recall had included cars only through model year 2007.

GM also said Friday that it had confirmed that one more death had been caused by the ignition switch problem, meaning it now believes 13 people have died in accidents related to the faulty switch.

GM Chief Executive Mary Barra said the switch recall now covers 2.2 million cars sold in the United States.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags.

Although GM has recalled the vehicles, it has said they are still safe to drive if owners remove any extra weight from key rings. GM has said it will begin the repairs on April 7.

Congress and federal prosecutors are investigating why GM did not recall the cars for a decade after it discovered the problem.

Barra, who has apologized repeatedly for the delays in the recall, is due to testify before Congress on Tuesday and Wednesday.

She explained the expansion of the ignition switch recall in a statement Friday, noting faulty switches could have been installed as a repair after owners purchased one of the newer models

"Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn't practical," Barra said. "Out of an abundance of caution, we are recalling the rest of the model years."

She added: "We are taking no chances with safety."

--CNNMoney's Chris Isidore, Katie Lobosco and Peter Valdes-Dapena contributed to this report.

Related: Wheels video series - BMW 535d

First Published: March 29, 2014: 8:41 AM ET

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Tesla reaches deal to keep selling in New York

NEW YORK (CNNMoney)

Tesla (TSLA) and the New York Automobile Dealers Association have reached a compromise in their battle over Tesla's existing five stores in New York City and surrounding suburbs.

The dealers had been pushing to shut down the stores, charging that they violated dealership laws that prohibit selling directly to customers. All other automakers rely on independently-owned dealers to sell cars.

The dealers are a powerful political lobby in most states and seek to prohibit direct sales.

As part of the compromise announced late Friday, Tesla can continue to operate its existing stores but new ones will be allowed only through dealerships.

Tesla said it is happy with the agreement, an indication that it plans dealerships in the future.

Tesla has argued that it needs direct sales to consumers so its own sales people can explain the advantages of electric cars. It says that if it had to use dealers who also sell cheaper, gas powered cars, the dealers would neglect the Tesla Model S, which has a starting price of $69,000.

Tesla is aiming to introduce a cheaper electric car in about three years. It hopes to sell about 500,000 cars per year by 2020, up from 35,000 expected in 2014. Tesla's own company filings concede that the lack of an outside dealership network would limit increased sales of the car.

The agreement in New York comes days after Tesla got a delay on a ban on sales in neighboring New Jersey.

New Jersey had been set to prohibit the two Tesla stores from selling cars starting April 1, but this past week it agreed to delay that ban on sales until at least April 15. And legislators and members of the New Jersey dealership association are talking about a compromise that would allow Tesla sales to continue long-term, if not indefinitely.

Interactive map: Where you can buy a Tesla

First Published: March 29, 2014: 3:49 PM ET

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Ford boosts CEO pay 11% to $23.2 million

Ford CEO Alan Mulally is credited with turning the company around.

NEW YORK (CNNMoney)

Mulally was paid $23.2 million in 2013, up from about $21 million the previous year, Ford (F, Fortune 500) said in a regulatory filing.

For 2013, the automaker's earnings rose 26% to $7.2 billion. The company also shared its strong performance with its hourly factory workers with a record profit-sharing bonus of about $8,800 each.

Mulally became Ford's CEO in 2006 and is credited with turning the automaker around, allowing it to avoid the bankruptcy and federal bailout that rivals General Motors and Chrysler Group required during the recession.

Mulally is also highly regarded in the corporate world and rumors circulated earlier this year that he would be tapped by Microsoft (MSFT, Fortune 500) to replace retiring CEO Steve Balmer. But Mulally put those rumors to bed in January and said he would stay with Ford at least through 2014.

Ford is paying Mulally more than what GM (GM, Fortune 500) paid former CEO Dan Akerson in 2013. Akerson retired in January and was replaced by Mary Barra, whose pay package totals $14.4 million.

Mulally's base salary remains the same at $2 million. His raise comes from a bigger bonus and increase in stock awards.

First Published: March 28, 2014: 4:45 PM ET

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S&P downgrades Target for data breach

Last year's data breach keeps hurting Target. S&P downgraded it one notch.

NEW YORK (CNNMoney)

The breach compromised credit card numbers and personal information of tens of millions of customers during the 2013 holiday season. Target (TGT, Fortune 500) has said the hack cost the company as much as $61 million in the final months of 2013.

S&P expects the breach to have a "somewhat lingering effect" on traffic at the retailer's stores through at least August of this year. Sales slowed in the most recent quarter, which ended Feb. 1.

Target recently said its ongoing investigation of the breach could turn up "additional information that was accessed or stolen."

But the agency also said Target's outlook is stable. Although the retailer lost $723 million in Canada last year, S&P expects those losses to narrow in 2014. The agency also considers costs due to the data breach to be "significant but manageable."

First Published: March 28, 2014: 5:22 PM ET

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GM adds 824,000 vehicles to recall

NEW YORK (CNNMoney)

Until today the recall included the Chevrolet Cobalt and HHR, the Pontiac G5 and Solstice, and Saturn Ion and Sky through model year 2007. Now the company is including all model years of those vehicles because faulty switches could have been installed as a repair after owners purchased one of the newer models.

About 95,000 faulty switches were sold to dealers and wholesalers and about 90,000 of those were used to make repairs, the company said.

The new recall adds to the 1.4 million vehicles already recalled in the United States.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags. At least 12 deaths have been attributed to the issue. Although GM has recalled the vehicles, it has said they are still safe to drive if owners remove any extra weight from key rings.

Related: GM's steps to a recall nightmare

"Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn't practical," said CEO Mary Barra in statement. "Out of an abundance of caution, we are recalling the rest of the model years," she said.

GM has been criticized for how it has handled the recall because it has admitted that some employees were aware of problems with the ignition switch in small cars at least as early as 2004. Barra will testify before a U.S. congressional subcommittee on April 1 as part of an investigation into the automaker's handling of the flawed ignition switch.

Owners who may have had a suspect part installed in their cars will receive a letter the week of April 21, according to the company. GM (GM, Fortune 500) dealers will replace the ignition switch for free and customers who had paid to have the switch replaced previously will be eligible for a reimbursement.

The National Highway Traffic Safety Commission urges impacted drivers to have their vehicles repaired promptly after receiving the notification from GM. In the meantime, the group advises them to follow GM's recommendation to use only the ignition key with nothing else on the key ring when driving the vehicle.

First Published: March 28, 2014: 6:16 PM ET

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Find the best airfare site for you

Looking for the cheapest flights? Start your online search using Kayak.

(Money Magazine)

To get the best price with the fewest clicks, find a flight-search site to match your travel style.

FOR PENNY PINCHERS:

The pick: When going cheap is your top priority, start with Kayak.

The test: In 15 searches, the site came out on top nine times, tied four times, and was beaten twice -- the best record in our test. The Kayak fares were often only slightly cheaper, but some gaps were dramatic: An identical roundtrip from Washington, D.C., to Jamaica was $379 on Kayak vs. $449 on Travelocity.

Related: A foodie's travel guide to 4 cities

Shopping by price can mean painful layovers and departure times, but you can screen those out using the site's customizable search tools.

FOR FLEXIBLE FLIERS

The pick: Vacationers with give in their schedule should try Adioso. Rather than using the usual plus or minus three days tool, this site lets you enter a plain language request, such as "10 days in the Caribbean" or "Vegas any Friday when price drops to $300," returning results in a graph that allows easy comparison of your options.

The test: Searching "New York to Puerto Rico in April," for example, turned up a $285 roundtrip, departing mid-month. We did find the same fare elsewhere, but only after multiple searches.

FOR PASSPORT STAMPERS

The pick: Globetrotters should be sure to check Vayama, which specializes in international travel.

The test: Vayama put together flight combinations we found nowhere else, like a $316 Paris-to-Budapest roundtrip on Air France and KLM (the runner-up came in at $332 on different airlines).

Related: 5 dream trips of a lifetime

For short hops while abroad, Anne Banas of SmarterTravel.com recommends sites based outside the U.S., such as Momondo, the only one in our test to search regional airlines like Brazil's Azul and SafariLink in Kenya.

FOR JET SETTERS

The pick: Constantly zipping from city to city? Once again, Kayak is the one to beat, although this time the deciding factor is ease. The site's multistop search automatically fills in the previous connecting city and appropriate month, trimming some time (and annoyance) out of the process.

The test: Kayak, Google Flights, and Bing Travel dug up similar fares -- including a Boston-Denver-Austin itinerary that all three priced at $389 -- but Kayak got there in fewer keystrokes.

First Published: March 27, 2014: 4:09 PM ET

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Lawyer wants recalled GM cars off the road

The Chevrolet HHR is one of the models included in GM's recall of 1.6 million vehicles worldwide.

NEW YORK (CNNMoney)

GM has told owners of the vehicles with flawed ignition switches that they can safely drive the cars if they remove any extra weight from key rings.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags. At least 12 deaths have been attributed to the issue. About 1.6 million vehicles have been recalled worldwide, including the Chevrolet Cobalt and HHR, Pontiac G5 and Solstice, and the Saturn Ion and Sky built in model years 2003 through 2007.

Related: Lawsuit alleges GM botched recall

Although GM has recalled the vehicles, it hasn't told owners to stop driving them.

Robert Hilliard, the attorney seeking the court order, represents the owners of a 2006 Chevrolet Cobalt who claim the recall has diminished the value of their car due to growing consumer skepticism.

Hilliard's clients say they are concerned there are more than 1 million unsafe vehicles on the road putting other drivers at risk. They want GM to issue a "Park It Now" alert.

"It is a moral imperative that they send a letter to every one of their customers to park it now and do not drive it another foot," Hilliard said.

Related: Steps to a recall nightmare

Judge Nelva Gonzales Ramos has agreed to hear the motion on April 4 in U.S. District Court in Corpus Christi, Texas.

GM (GM, Fortune 500) says that if owners follow its directions the cars are safe to operate.

"GM engineers have done extensive analysis to make sure if you use only the ignition key with no additional items on the key ring, the vehicle is safe to drive," GM spokesman James Cain said Thursday.

The automaker has urged dealers to provide customers worried about their cars with loaner vehicles. About 10,000 people have requested loaners since the cars were recalled in February. Repairs to the recalled cars will begin on about April 7, Cain said.

First Published: March 27, 2014: 8:09 PM ET

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Report: Amazon considering free streaming service

NEW YORK (CNNMoney)

Emphasis on the word "might."

The company is planning a free streaming service that could complement the $99-a-year Amazon Prime product that it already has, according to The Wall Street Journal.

A few hours after the report surfaced, though, Amazon seemed to dispute it, telling reporters that "we have no plans to offer a free streaming media service."

The back-and-forth stoked yet more curiosity about Amazon's multimedia plans.

Related: Apple eyes partnership in bid to reinvent TV

Currently Amazon Prime has three main features: free two-day shipping, a streaming selection of TV shows and movies, and an e-book lending library. There's no way to access Amazon (AMZN, Fortune 500)'s original TV shows, like "Alpha House" and "Betas," without a Prime subscription.

The free service Amazon is considering could change that. As described by The Journal, it would resemble Hulu, the online video site jointly owned by the parent companies of broadcasters ABC, NBC and Fox. Most visitors to Hulu only use its free, ad-supported version, but about five million subscribe to its paid version, called Hulu Plus.

Hulu Plus costs $8 a month, or $96 a year, roughly equivalent to Amazon Prime (but without the free shipping or other perks).

Related: Sony orders first original TV series for PlayStation

The free version of Hulu features many TV shows, including some that are exclusive to the website. But because of the various limitations and delays imposed on the free version, some visitors are persuaded to pay for Hulu Plus.

Amazon might be eyeing a similar two-tiered business model, especially as it prepares to sell a streaming video device of its own.

On Thursday, hours before the Journal report, the company invited reporters to an April 2 event where the device is expected to be announced. The long-rumored device -- which has been likened to Apple (AAPL, Fortune 500) TV and Google (GOOG, Fortune 500) Chromecast in press reports -- will help users watch Internet content, including Amazon Prime TV shows, on big-screen TV sets.

Amazon may also want to delve deeper into the advertising sales business. Selling ads before and after TV episodes (and other forms of content, like music videos) would take another page from the broadcasters' long-established playbook.

On Thursday evening, an Amazon spokeswoman said, "We have a video advertising business that currently offers programs like First Episode Free and ads associated with movie and game trailers, and we're often experimenting with new things, but we have no plans to offer a free streaming media service."

First Published: March 27, 2014: 7:32 PM ET

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Find hidden IRA savings

Three ways to save more for retirement and lower your taxes over the long run.

(Money Magazine)

Unlike most tax breaks, which expire at the end of the tax year, you have until midnight on April 15 to make a 2013 IRA contribution -- of up to $5,500, or $6,500 if you're 50-plus.

The case for conversion

Don't qualify for a write-off on a traditional IRA? Open one anyway, then convert it to a Roth. Here's what your retirement savings would be worth if you contributed $5,500 yearly starting at 30.

Roth IRA	$436,000
Tax-efficient brokerage account	$381,000
Brokerage account	$361,000
Nondeductible traditional IRA	$353,000

NOTES: Amounts are in today's dollars. Assumes 6% average return. Tax rate is 28% until retirement, 15% at retirement (0% cap gains rate). Inflation rate is 2% annually. SOURCE: Vanguard

Already putting money in? Pat yourself on the back: Only 15% of households saved in an IRA last year, according to the Investment Company Institute. But you may be missing opportunities to sock away even more. And if you're not participating because you think your income doesn't allow it? There's a workaround for that too, which you ought to consider.

Related: 10 tax audit red flags

After all, the more you can put away in IRAs, the better. "They're one of the best tax breaks you can take advantage of for retirement," says New York CPA Ed Slott, founder of IRAHelp.com.

As you may know, contributions to a traditional IRA are fully deductible up to certain income limits -- for 2013, $59,000 in modified adjusted gross income for single folks and $95,000 for couples filing jointly. With a Roth -- eligibility for which starts phasing out at $178,000 for couples in 2013 -- you get no write-off upfront, but get to withdraw funds tax-free in retirement.

Related: 8 ways to cut your tax bill

In both types, your money grows without the drag of taxes. (President Obama recently announced another IRA for beginning savers, the MyRA.) Maximize these benefits with the tactics that follow, but you may want to hurry. Time's running out to reduce your 2013 bill.

Save for a spouse

While the IRS says you must have earned income to stash cash in an IRA, there's one exception: You can put money in on a spouse's behalf if he or she has no income, so long as you file jointly. "The IRS doesn't want to penalize a spouse for not working," says Adam Glassberg, a financial planner in the Chicago area.

A spousal IRA can be either traditional or Roth, with the same contribution allowances. One big, important difference is that contributions made to a traditional spousal IRA are fully deductible up to a higher income -- $178,000 in modified adjusted gross -- than for joint filers who both have access to a 401(k). Assuming you qualify for that deduction, a $5,500 contribution will shave $1,540 off your 2013 taxes if you're in the 28% tax bracket.

Stash self-employment income

Do you work for yourself? Or did you do a freelance gig or two on the side last year? The savings opportunity is especially good for you.

You can contribute as much as 25% of net self-employment earnings, up to $51,000 for 2013, to a simplified employee pension plan, or SEP IRA. That's in addition to the $5,500 you can put in a traditional or Roth IRA, plus the $17,500 you can put in a 401(k) if you have one through a primary occupation. So it's an especially worthwhile strategy for moonlighters who are already maxing out a workplace retirement plan. Plus, SEP contributions are fully deductible.

"It's a really valuable way to save and reduce your taxes," says Newport Beach, Calif., financial planner Dan Thomas.

Use the back door to a Roth

Even if you make too much to write off a traditional IRA contribution, you're still eligible to stash money in such an account. Without the deduction, a traditional IRA can lag behind a brokerage account invested in index funds or other tax-efficient holdings. But you may still have good reason to open one: A nondeductible IRA allows you to sidestep your way into a Roth if you wouldn't otherwise be eligible based on income.

Related: 13 crazy tax deductions

You can convert a traditional IRA to a Roth at any time, no matter your AGI. Assuming you have no other IRAs and shift over the funds immediately -- before you have gains -- you won't owe any taxes. (If you do have any existing deductible IRA savings, you will owe prorated tax based on the total balance, to essentially pay back the write-off you took upfront.)

Moving to a Roth can be especially beneficial if you think your tax bracket will be the same or higher in retirement. Unfortunately, this strategy won't help you fend off Uncle Sam this month, but you might be quite thankful 20 years down the road.

First Published: March 26, 2014: 8:00 PM ET

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Kickstarter backlash over Oculus overblown?

Oculus Kickstart investors feel betrayed

NEW YORK (CNNMoney)

Oculus VR chief Palmer Luckey used Kickstarter to raise $2.4 million. Over 9,500 people backed the initial call for funding in August and September 2012. Many who donated felt they were helping a cool new product -- the Oculus Rift headset -- that was outside of the influence of the usual Silicon Valley giants. Then Facebook (FB, Fortune 500) came calling.

Related: Facebook to buy virtual reality firm Oculus VR for $2 billion

It seems the reality of business, the plans of a social media powerhouse, and the hopes and dreams of mom and pop investors who liked the idea of "starting the next big thing" are colliding in a nasty mix of bile, disappointment and a belief that the "little guy" (aka crowdfunders) got double crossed.

On the Kickstarter's "backers" page Sergey Chubukov said, "You selling out to Facebook is a disgrace. It damages not only your reputation, but the whole of crowdfunding. I cannot put into words how betrayed I feel by this."

That was but one of many outraged voices. Sander van Rossen left this comment, "Glad you guys were able to sell out with a product built on our money. I can understand that you guys need more money to be able to compete with Sony, Bat Facebook? Come on!"

Philipp Struchtrup spouted this: "Thanks for selling us out Palmer! You couldn't have chosen a worse company. Why not also team up with the NSA... Sadly I supported this company. A mistake which will not happen again."

There were a few backers, like Jeff McMorrris, who took a more sanguine approach, "I am not sure why everyone's so upset. Facebook is going to increase resources available to Oculus. It's just silly to think it's going to become an advertising platform. Facebook is smart. They saw the future, just like the rest of us here and bought it for $2 billion. They got a bargain."

Reaction on social media site Reddit was largely tame. Many people there looked at the bigger picture.

"I know people are offended and outraged about this, but turning down such a huge number of cash for your creation is too hard to ignore. They basically do not have to work for the rest of their lives, several of them, and their families. For a virtual gadget, nonetheless. People don't seem to understand that the creators don't owe you anything," one commenter wrote.

Some on Reddit even noted that the Oculus founders may take Facebook's money and start something else with it, although some thought the team behind Oculus may have lost their most important edge: the "it" factor. As one commenter said, "At the very least its gone from "cool" to "not cool" in a flash."

Kickstarter backers understand they have no real stake in the company. Sometimes they receive t-shirts or other promotional items, but they do not get stock or any decision making power. Those who contributed over $300 in the Oculus VR crowdfunding campaign were supposed to receive a pair of the gaming glasses in the development phase.

Nicholas Negroponte, founder of the influential MIT Media Lab told CNNMoney, "They have no right to be angry. I was astonished at the naivete of people. Each side...Facebook and Oculus will get better partners. This is analogous to people who were complaining when Google bought Nest. I find it surprising."

When asked about the level of acrimony that some crowdfunders seemed to feel, Negroponte attributed it to envy.

We'll see soon enough whether this anger lasts, and, more importantly, if it has any impact on future Kickstarter campaigns for emerging tech companies.

First Published: March 26, 2014: 4:34 PM ET

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Connecticut boosts minimum wage to $10.10 by 2017

Gov. Dannel Malloy will sign the bill Thursday at a cafe where he discussed wages earlier this month with President Obama.

NEW YORK (CNNMoney)

The state legislature approved the bill Wednesday and Gov. Dannel Malloy, who proposed the increase, announced he would sign it on Thursday evening.

The hike will be made in steps, first from the current rate of $8.70 to $9.15 on Jan. 1, 2015. It will go up to $9.60 the following year and reach $10.10 in 2017.

The move makes Connecticut the first state to match Democrats' proposal to raise the federal minimum wage to $10.10, a move President Obama supports.

The President has encouraged mayors, governors and state legislators not to wait for Congress to adopt the $10.10 rate.

Bills similar to Connecticut's are being debated in Maryland and Hawaii and the city of Santa Fe, New Mexico, raised minimum wage to $10.66 earlier this month.

Connecticut is only one of many states that have already hiked the minimum wage above the current federal rate of $7.25. Washington currently has the highest statewide minimum wage rate, set at $9.32 per hour.

Obama commended Connecticut legislators in a statement Wednesday, and at the same time urged Congress to act on the federal rate.

First Published: March 26, 2014: 9:02 PM ET

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Facebook to buy virtual reality firm Oculus VR for $2 billion

NEW YORK (CNNMoney)

The social networking giant announced plans Tuesday to buy virtual reality firm Oculus VR for $2 billion, its latest high-profile acquisition.

Oculus makes the Oculus Rift headset, which covers your eyes and immerses you in a virtual environment that responds to your head movements.

The Rift has demoed at tech industry events to rave reviews, though it isn't yet available to consumers. Facebook CEO Mark Zuckerberg declined to comment on when that might happen. Developers interested in building software for the device can purchase it for $350, and the company has received more than 75,000 orders so far.

The news follows Facebook's purchases of mobile messaging service WhatsApp last month for $19 billion, and mobile photo app Instagram two years ago for $1 billion.

"Mobile is the platform of today, and now we're also getting ready for the platforms of tomorrow," Zuckerberg said. "Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate."

As a company that makes its own hardware, Oculus is very different from Facebook's previous acquisitions. But Zuckerberg said Facebook isn't "going to try to make a profit off the devices long term."

Facebook plans to help Oculus develop first as a platform for immersive gaming, before expanding into other fields like education and live media.

Oculus, Zuckerberg said, fits into Facebook's long-term goals of "building the knowledge economy" and "connecting everyone."

The focus for now is simply investing in the product; in the long term, Zuckerberg said the technology offered a variety of profit-making opportunities in "software and services." He suggested that users might buy virtual goods or become targets for advertising.

Oculus has come a long way in a short period of time, having resorted to raising money on crowd-funding site Kickstarter just two years ago.

"At first glance, it might not seem obvious why Oculus is partnering with Facebook," Oculus said in a blog post.

"But when you consider it more carefully, we're culturally aligned with a focus on innovating and hiring the best and brightest; we believe communication drives new platforms; we want to contribute to a more open, connected world; and we both see virtual reality as the next step."

Oculus will likely face competition in virtual reality from Microsoft, which is rumored to be working on the technology, and Sony, which last week rolled out "Project Morpheus," a VR system that will pair with the PlayStation 4 gaming console.

In a conference call with analysts Tuesday afternoon, Zuckerberg was dismissive of these efforts, saying Oculus is "years ahead" of its competition. Facebook and Oculus share a vision of taking virtual reality beyond gaming "to make it more of a ubiquitous computing platform," he added.

Oculus will maintain its headquarters in Irvine, Calif., and will continue to operate independently, Zuckerberg said, citing the partnership with Instagram as a model.

The transaction includes $400 million in cash and $1.6 billion worth of Facebook stock. Investors weren't impressed by the deal, sending Facebook (FB, Fortune 500) shares down 0.8% in after-hours trading.

Although the deal comes on the heels of Facebook's blockbuster WhatsApp buy, Zuckerberg said investors shouldn't expect Facebook to make big acquisitions like this frequently, calling them "rare" opportunities.

"The theory for WhatsApp... is that they're on a path to have a billion people using their product in the near future, and there just are not that many services in the world that can reach a billion people," he said. "Similarly, with Oculus, there are not that many companies that are building core technology that can be the next major computing platform."

First Published: March 25, 2014: 6:25 PM ET

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Candy Crush maker prices IPO

NEW YORK (CNNMoney)

King Digital Entertainment will begin trading Wednesday under the ticker KING on the New York Stock Exchange at $22.50 a share the company said on Tuesday night.

The Dublin, Ireland-based game maker sold 22.2 million shares raising nearly $500 million from the offering. Based on that, King would be worth about $7.6 billion.

Related: Candy Crush company founder left $1 billion on the table

By comparison, rivals Zynga (ZNGA) and Activision (ATVI) sport valuations of $4 billion and $14.6 billion, respectively.

Among the underwriters are JPMorgan Chase (JPM, Fortune 500), Credit Suisse and Bank of America Merrill Lynch (BAC, Fortune 500), the company said in its federal filing.

Candy Crush averages about 93 million daily users, who play the game more than a billion times a day, according to the company.

King reported annual revenue of $1.9 billion and a profit of about $568 million, despite offering games such as Candy Crush, Pet Rescue and Farm Heroes to players for free.

But its growth has soared. Sales in 2012 were $164 million with a profit of just $8 million. King makes money by selling virtual items to a small fraction of its players who wish to enhance their playing experience.

Despite its rapid gains, King's dependence on Candy Crush has some market strategists questioning its long-term strategy. There are concerns that this could be a repeat of Zynga, which has been unable to the match the success of former hit Farmville.

"Since only a a small group of players generate most of King's revenue, a loss of even a small number of these players would materially affect King's gross bookings," said financial data firm PrivCo in a recent report.

Other red flags include slowing growth for Candy Crush, as well as the way King "double counts" its players, according to PrivCo, which has advised investors to pass on the stock.

"An individual playing Candy Crush on his cell phone while commuting to work and then later plays Candy Crush on his computer during their lunch break would be counted as two users," PrivCo said. "If the person then played on a tablet during the same period, he would be counted as three users."

Still, King's profits are impressive and plenty of investors are hungry for a taste of what they view as a sweet IPO.

King's stock may be "fairly valued," said Tim Keating, chief executive of Keating Capital, a fund that specializes in making pre-IPO investments but does not own a stake in King. He added that King's profit margins are strong and its revenue growth over the past year has been an "eye popping" 1000%.

But using history as a guide, some analysts are harboring a healthy dose of skepticism. Zynga, for example, currently trades at around 50% less than its 2011 IPO price. Still, Zynga has regained some lost ground and is up almost 30% this year.

Related: How does King Digital compare to Zynga?

King's public debut comes amidst a busy year for new offerings. There have been 53 new listings in the United States so far this year, according to IPO research and investment firm Renaissance Capital. In the same period last year, there were just 30 companies that went public. At that rate, the number of IPOs this year could rival last year's total of 222, which was the highest number since 2000.

While the overall market has been volatile due to geopolitical concerns and the Fed's scaling back of stimulus, the average IPO has returned 28.3% from its offering price, according to Renaissance.

-- CNN's Ben Rooney contributed to this report

First Published: March 25, 2014: 7:00 PM ET

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Malaysia Airlines Flight 370: How much will families be paid?

Passengers have waited more than two weeks for news about their loved ones aboard Malaysia Airlines Flight 370.

NEW YORK (CNNMoney)

International and contract law provide some answers, but the true figures will likely be settled when insurance claims and lawsuits are filed by relatives of the flight's 239 victims. Some attorneys, citing their past work on plane crashes, say the total for each passenger could vary from $400,000 to $10 million.

Based on calculations and more than two weeks of searching, Malaysia Airlines this week declared the airliner lost and said "none of the passengers and crew on board survived." The carrier said it has offered families an initial payment of $5,000 per passenger.

At least one U.S.-based case against Malaysia Airlines and Boeing, which manufactured the aircraft, is in progress. Aviation attorney Monica Kelly said she filed a request for documents and other information in an Illinois court on Tuesday. She said she represents Januari Siregar, whose son was aboard the Flight 370.

Boeing declined to comment late Tuesday, and officials with Malaysia Airlines couldn't immediately be reached.

Here are answers to some questions about compensation for the victims.

$5,000 isn't a lot of money. Can victims' families expect more? The initial payment is just that -- assistance to handle immediate expenses like travel and lodging.

Insurance claims and lawsuits will likely be handled separately.

Many factors will be considered in those negotiations between families and the airlines' insurers, which will make each family an offer and seek to settle the claim.

Related: Passengers' families could collect millions

Bradley Meinhardt, a managing director at risk management services firm Arthur J. Gallagher & Co., gave an example.

"They're going to look at the earning potential of that deceased individual and the fact that he's got a wife and young kids that are going to need to be provided for for a long time," he said. "A single individual is going to be calculated differently."

Those calculations will vary based on age, the victim's country of residence and a variety of other factors, he said.

Despite the intrigue surrounding the missing plane, the claims will move forward quite normally, Meinhardt said.

"The accident is just like any other accident," he said. "The only difference is nobody knows exactly what caused it."

Can the families also file lawsuits? Yes, and many likely will.

Some, Meinhardt said, will be looking to make a statement of frustration with the airline.

Others may pursue targets beyond the airline, such Boeing (BA, Fortune 500). Those cases could be more difficult to prove without physical evidence from the 777 jet.

Mark Dombroff, an attorney who works with the airline industry and previously worked for the Federal Aviation Administration and Department of Justice, said there is "utterly no basis at all" to believe that a defective product caused the crash.

The lawsuits wouldn't depend on "whether they find the aircraft or not," he said. Instead, the suits would revolve around the airline's obligation to provide its passengers safe passage from point A to point B.

Related: Crowdsourcing site hunts for plane

An international law known as the Montreal Convention specifies where cases may be brought. The families can sue, for example, in the country where the passengers bought the ticket, where the airline is based or their final destination.

That means most suits would be brought in Chinese or Malaysian courts. Dombroff said only families of the three Americans could sue Malaysia Airlines in U.S. courts.

When will the first insurance claims be paid? International law requires airlines to carry hefty insurance policies that cover the passengers and plane in nearly every circumstance. Nuclear detonations are the only events that aren't typically covered, Meinhardt said.

The first claims involving passengers could be paid out in the coming weeks and months.

A claim for the lost aircraft itself is already in motion. Insurer Allianz Global Corporate & Specialty said last week that it and other firms "have made initial payments" of an unspecified amount as part of "our contractual obligations where an aircraft is reported as missing."

Meinhardt said that policy is upward of $100 million and is typically paid directly to the airline or funneled into an escrow account.

Families can also begin to collect on any life insurance policies or flight insurance they have purchased. Those claims are handled separately from the airline's insurance.

What if the airline goes bankrupt? Malaysia Airlines lost money in the final three months of 2013. But even if the airline's financial situation worsens and it becomes insolvent, families of the victims can still collect through the maze of insurance policies.

The industry norm totals between $2 billion and $2.5 billion of coverage per plane, said aviation attorney Dan Rose of Kreindler & Kreindler.

That typically includes about $10 million of insurance behind each passenger, said Brian Havel, a law professor and director of the International Aviation Law Institute at DePaul University.

Don't expect a major incident like this one to sink the insurers, either.

"The aviation insurance market is highly specialized and involves multiple consortia of different insurance companies -- insurers and reinsurers," Havel said. Multiple insurers take small stakes of the larger policies so no single company bears the entire risk.

How is this different than if the crash happened in the U.S.? Besides international law, local law specifies how the investigation will be carried out and victims' families will be handled.

U.S. law requires airlines to develop family assistance plans that include compensation for expenses in addition to the claims paid by insurers.

Dombroff said Malaysia Airlines is likely adapting U.S. procedures, since they are the industry gold standard. But those plans have limits.

"The very best emergency response plan is only good for the first several hours and after that you respond to and you're trying to stay out in front," he said.

--CNN's Laurie Frankel contributed to this report.

First Published: March 25, 2014: 5:05 PM ET

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File management service Box reveals IPO plans

Box CEO Aaron Levie.

NEW YORK (CNNMoney)

The company began as an academic project of CEO Aaron Levie, who launched it from his dorm room at the University of Southern California's Marshall School of Business in 2005. Box focuses on business customers, and says over 200,000 firms use its technology, including LinkedIn (LNKD), Pandora (P) and Procter & Gamble (PG, Fortune 500).

That hasn't yet translated to profitability, however. The company reported $124 million in revenue for the year ended January 31, but lost $169 million overall, up from $112.5 million in the year prior.

Box plans to list on the New York Stock Exchange, which also beat out the the tech-focused Nasdaq for the Twitter (TWTR) IPO last year. The company's proposed ticker is (wait for it) BOX.

Related: Key numbers in the Box IPO filing

Box's filing puts the spotlight on competing file-storage service Dropbox, which analysts also see as a possible IPO candidate in the months to come.

Box faces stiff competition in data management and cloud storage. In addition to Dropbox, tech giants like Amazon (AMZN, Fortune 500) and Google (GOOG, Fortune 500) have robust cloud-storage services. Cisco (CSCO, Fortune 500) also announced plans Monday to significantly expand its cloud services over the next two years.

Levie told CNNMoney back in 2012 that Box wasn't fazed by the crowded marketplace, pointing to the company's focus on business customers.

"We ultimately moved into the enterprise market because we saw that eventually, with services [from companies] like Google and Microsoft (MSFT, Fortune 500) and Apple (AAPL, Fortune 500), they would be subsidizing and commoditizing the cloud-storage space on the consumer side," Levie said.

First Published: March 24, 2014: 6:29 PM ET

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Disney to pay at least $500 million for YouTube video maker

NEW YORK (CNNMoney)

Maker Studios is a leading producer and distributor of short, entertaining videos on YouTube, many of which are geared toward millennials. Its vast array of online channels total 5.5 billion YouTube views per month, according to Maker, which makes it one of the most successful online video companies of its kind.

In effect, Maker has helped create a whole new universe of shows, made for the Web rather than television, and now Disney can learn from them. This is especially important because key Disney demographics — like teenagers — are flocking to YouTube and other online video destinations.

"By acquiring Maker Studios, Disney will gain advanced technology and business intelligence capability regarding consumers' discovery and interaction with short-form online videos, including Disney content," the press release about the acquisition said.

Interestingly, Maker will not be folded into one of Disney's television or film divisions; instead, its executives will report directly to Disney's chief financial officer, under the theory that this will ease collaboration with multiple divisions.

Related: Coming soon, TV truly on your phone

Disney said it expected the acquisition to close sometime in the spring. On top of the $500 million, Maker's shareholders may receive up to $450 million more over time, depending on whether Maker achieves its performance targets.

Roughly $70 million had been invested into Maker, including $25 million from the investment arm of Time Warner, the parent of this website.

The $500 million — possibly $950 million — figure will set a new bar for startup online video networks. When The Wall Street Journal broke the news earlier this month that Disney and Maker were talking, the newspaper said it "would mark the biggest acquisition by a major media company in the fast-growing but challenging business of producing and promoting video programming on Google's YouTube."

"Maker's YouTube-centric DNA would give Disney valuable insight into how to extend its star-making machine to the still quite opaque online realm," industry analyst Will Richmond, the publisher of Videonuze, wrote at the time. "But star-making is just half of the equation. The other, equally important half is mastering (and quite possible shaping) how online video distribution works, and what role YouTube will play."

Other major media companies have pursued similar questions through acquisitions. Two years ago, Discovery Communications bought a different kind of video startup, Revision3, for a reported $30 million. One year ago, DreamWorks Animation agreed to an initial sum of $33 million to acquire AwesomenessTV, a network of teen-oriented YouTube channels. Depending on the performance of AwesomenessTV, that deal may be worth $117 million over time.

Earlier this month, the Warner Bros. division of Time Warner led an $18 million round of funding for another YouTube-centric online video network, Machinima.

Bob Iger, the chief executive of Disney, said in a statement on Monday that "short-form online video is growing at an astonishing pace and with Maker Studios, Disney will now be at the center of this dynamic industry with an unmatched combination of advanced technology and programming expertise and capabilities."

First Published: March 24, 2014: 7:48 PM ET

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'The Big Short' will hit the big screen

Paramount and Brad Pitt's Plan B production company will turn the book about the housing bubble and burst into a movie.

NEW YORK (CNNMoney)

Paramount Pictures and Brad Pitt's Plan B production company are teaming up to make Lewis' book "The Big Short: Inside the Doomsday Machine" into a movie.

In the non-fiction book, Lewis writes about the housing bubble and follows people who predicted it would burst. The book was published in 2010 and spent months on the New York Times bestseller list.

"(He) has the amazing ability to take complex formulas and concepts and turn them into page turners," said Adam McKay in a statement.

McKay will be adapting and directing the movie and is most recently known for co-writing, producing and directing "Anchorman 2."

Related: Make 6 figures on Wall Street, but life stinks

Lewis, a former Salomon Brothers bond salesman, penned "Moneyball" and "The Blind Side," which have both been made into movies. He is also the author of "Liar's Poker," a book based on his experiences on Wall Street in the 1980s.

First Published: March 24, 2014: 8:06 PM ET

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Candy Crush mania coming to Wall Street

The game is addictive, will the stock be too?

NEW YORK (CNNMoney)

King Digital Entertainment, which makes the popular Candy Crush Saga online game, is one of 14 companies set to go public this week.

The U.K. based company, which will list on the New York Stock Exchange under the ticker symbol 'KING', plans to sell about 22 million shares at a price somewhere between $21 and $24 per share.

Based on the midpoint of that range, King would have a market value of about $7 billion. King had annual revenue of $1.9 billion and a profit of about $568 million in 2013, according to its prospectus.

Compared with some of its rivals, such as Zynga (ZNGA) and Activision (ATVI), King's stock may be "fairly valued," said Tim Keating, chief executive of Keating Capital, a fund that specializes in making pre-IPO investments but does not own a stake in King. Zynga is worth about $4 billion while Activision has a market value of around $15 billion.

Keating said some investors are concerned that King's profits are too closely tied to the success of one game. But he added that King's profit margins are strong and its revenue growth over the past year has been an "eye popping" 1000%.

Related: European IPOs boom as bull market runs

Even though stocks have been volatile lately due to geopolitical concerns, the Nasdaq is still all up more than 2% so far this year. And that's helped fuel strong demand for IPOs.

There have been 53 new listings in the United States so far this year, according to IPO research and investment firm Renaissance Capital. In the same period last year, there were just 30 companies that went public.

At that rate, the number of IPOs this year could rival last year's total of 222, which was the highest number since 2000.

Most of the stocks that have debuted this year have outperformed the broader market. The average IPO has increased 35% from its offering price so far this year, according to Renaissance.

Related: Candy Crush company founder left $1 billion on the table

Healthcare software company Castlight Health (CSLT), which debuted earlier this month, has doubled from its offering price. Biotech Dicerna Pharmaceuticals (DRNA), which went public in late January, is up nearly 180%. So is Auspex Pharmaceuticals (ASPX), which started trading in early February.

And on Friday, biotech Versartis (VSAR) surged about 50% from its offering price.

In fact, the healthcare sector has been by far the most popular in the IPO market. So far this year, 29 healthcare companies have gone public.

The robust IPO market is a continuation of last year's bumper crop. Keating said much of the boom in IPO activity is linked to the JOBS Act, which removed some obstacles for smaller companies to go public.

More broadly, investors have been drawn to IPOs for the strong growth that newly public companies promise.

Still, Keating noted that roughly three-quarters of the companies that have gone public recently have not been profitable, which is up from the long-term average of about 50%.

That could be a sign of some froth in the market, though the IPO boom could continue for some time, Keating added.

First Published: March 23, 2014: 8:42 AM ET

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Arizona may allow Tesla sales

NEW YORK (CNNMoney)

The bill is part of Arizona's effort to be the home state of a massive Tesla factory currently under development.

Arizona is one of four southwestern states Tesla is considering for its so-called gigafactory, a $1.6 billion battery production center that the company says could employ 6,500 workers.

Tesla has showrooms in 23 states and is explicitly allowed to sell its cars directly to consumers in four states. That model is illegal in many others.

One of Tesla's dozens of showrooms is in an upscale mall in Scottsdale, Arizona. Potential buyers can learn about the vehicles, but to buy, must head to a state where it is legal to do so, such as neighboring California.

Related: Where it's legal to buy a Tesla

Sponsor Warren Petersen, a Republican member of the state house, said the bill was written to bring Tesla to town.

"We wanted to send a message that Arizona is open for business," Peterson told CNN affiliate KPNX-TV.

The bill would apply only to electric cars.

The measure would have "a very small impact" on the state's auto market, Peterson said, but would be good for Tesla.

A state senate committee last week passed the measure over strong objections from an auto dealers' group. But its fate in the full legislature is uncertain, said Brahm Resnik, political reporter for KPNX-TV.

"Much like other states, our auto dealer lobby is quite powerful," Resnik said.

If the bill passes, it would become part of the portfolio of incentives each state in the running for the factory is expected to pitch to Tesla. Nevada's dealership law is under dispute. New Mexico and Texas do not allow direct sales.

If Arizona scores the gigafactory, it would be the state's second big-name acquisition. Last year, Apple announced one of its two new U.S. plants would be built in Mesa, Arizona. The other is in Texas.

New Jersey, which is not in the running for the factory, recently banned direct sales. Tesla had been selling its cars at two Garden state showrooms.

--CNNMoney's Chris Isidore contributed to this report

First Published: March 23, 2014: 4:11 PM ET

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Report: Leaked Snowden documents show NSA hacked Chinese telecom company

NEW YORK (CNNMoney)

The Times reported the U.S. National Security Agency monitored communications of top Huawei executives looking for evidence of ties to the Chinese government and military.

The documents do not confirm those ties, the Times reported.

The NSA was also interested in tapping into Huawei's extensive networks, enabling it to monitor communications of Huawei customers in other countries, including Iran, Afghanistan, Pakistan, Kenya, and Cuba.

It was unclear from the Times report if those surveillance efforts were followed through on.

The surveillance program, dubbed "Shotgiant," was also reported by the German publication Der Spiegel.

A U.S. based Huawei executive, William Plummer, told CNNMoney, "Huawei condemns the infiltration of corporate networks, the monitoring of private communications and the theft of confidential product information, all the more so when the intent of such theft is to abuse that confidential information to disrupt and exploit other networks."

Spokeswomen for the White House's National Security Council and National Security Agency declined to comment on the specifics in the documents. But both agencies distinguished between intelligence for national security and intelligence for economic advantage. "We do not give intelligence we collect to U.S. companies to enhance their international competitiveness or increase their bottom line. Many countries cannot say the same," NSC spokeswoman Caitlin Hayden said.

NSA spokeswoman Vanee Vines noted the agency's position that, "Continuous and selective publication of specific techniques and tools used by NSA to pursue legitimate foreign intelligence targets is detrimental to the security of the United States and our allies."

Related: Google tries to NSA-proof Gmail

Huawei is a global telecom company based in China that is a major player in computer networking, government and financial and mobile communications. Its services connect to a third of the world's population, the Huawei Website says, and ranks third to Apple and Samsung as a producer of mobile phones.

The U.S. government has been suspicious of Huawei's ties to the Chinese government and blocked efforts to expand into the U.S. A 2012 congressional report said Huawei and another Chinese company could "undermine core U.S. national-security interests."

Former NSA chief Michael Hayden in 2013 accused the company of spying for Beijing, saying it at least provided Chinese officials an "intimate and extensive knowledge of the foreign telecommunications systems."

American officials have long-accused Beijing and the Chinese military of being behind cyberattacks on U.S. networks. China has denied the allegations. The U.S. government is also believed to have developed sophisticated cyberweaponry.

Related: Mark Zuckerberg calls Obama to complain about NSA

The Times said the operation began in 2007 and published two slides from a 2010 presentation.

"If we can determine the company's plans and intentions, we hope that this will lead us back to plans and intentions of the PRC," one document read, referencing the People's Republic of China.

The NSA also wanted to leverage the company's products as eyes and ears for its own intelligence gathering efforts.

"Many of our targets communicate over Huawei produced products, (and) we want to make sure that we know how to exploit these products," another slide read.

First Published: March 23, 2014: 1:25 PM ET

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Taxpayers hit with fewer audits

NEW YORK (CNNMoney)

The agency audited 1.4 million people last year, down 5% from 2012 and the lowest number of audits conducted since 2008, according to IRS statistics released Friday.

The IRS blamed its shrinking budget for the drop-off, saying "an ongoing decline in appropriate funding presented challenges."

Related: 10 tax audit red flags

Since 2010, the agency's budget has been reduced by almost $1 billion and around 10,000 employees have been cut. Under the 2014 budget, the IRS will receive $11.3 billion -- nearly $2 billion less than the White House had requested for the agency and a $526 million drop from 2013.

Meanwhile, government spending cuts last year forced the IRS to furlough workers without pay for three days, making it even harder for the agency to keep up with its workload.

To cut costs, the IRS has been conducting more audits by mail than in person. Last year, more than three-quarters of examinations were correspondence audits, and the rest were field audits -- meaning they were conducted at an IRS office or a taxpayer's home.

Related: Quiz - 7 surprising 2014 tax facts

And while the overall number of audits was low, at around 1% of all taxpayers, there are still certain groups that aren't getting a break.

One of those groups is the rich: About 9% of taxpayers with income between $1 million and $5 million were audited last year, and that rate rose to 16% for those with income between $5 million and $10 million. For the nation's top earners, with income over $10 million, the audit rate was 24%.

Business owners are also more likely to be audited, and so are taxpayers who claim a home office deduction or the Earned Income Tax Credit. Reporting -- or failing to report -- a foreign bank account could also lead to additional scrutiny, as the IRS continues to crackdown on people hiding offshore income.

Related: Tax season unleashes cyberscams

In addition to being unable to conduct as many audits, the agency's taxpayer assistance has been deteriorating, the National Treasury Employees Union said in a statement Friday.

"We are seeing the results of these reductions in staffing, particularly in customer service, all across the country," NTEU president Colleen Kelley said. "Both taxpayers and employees are frustrated by the lengthy lines at Taxpayer Assistance Centers and the long telephone hold times for those who call the IRS with a question."

First Published: March 21, 2014: 4:58 PM ET

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Are Netflix users ripping off the rest of us?

Reed Hastings says Netflix is "reluctantly" paying for faster connections to broadband networks.

NEW YORK (CNNMoney)

Hastings sounded off Thursday on the likes of Verizon (VZ, Fortune 500), Comcast (CMCSA, Fortune 500) and others, accusing them of "sacrific[ing] the interests of their own customers" in demanding fees to ensure quick delivery of content from Netflix (NFLX) and other data-intensive services.

The dispute flared up earlier this year following news that Netflix streaming speeds for customers of major ISPs were slowing, as these firms attempted to extract a fee from Netflix in exchange for connecting directly to their networks and resolving the issue.

Netflix announced an agreement with Comcast last month under which it will indeed pay for a connection, and has been in talks with Verizon as well.

Hastings said his company was engaging in these talks "reluctantly." He accused the ISPs of abusing their market power and short-changing customers.

Related: New chapter begins in net neutrality fight

But the ISPs tell a very different story. They point to the fact that Netflix generates a massive amount of data consumption -- around a third of traffic online during peak hours -- while sticking them with the ever-increasing delivery costs.

The National Cable and Telecommunications Association says just one percent of broadband subscribers -- primarily heavy streaming-video users -- consume nearly 40% of bandwidth going into homes.

Other big tech companies, including Microsoft (MSFT, Fortune 500), Google (GOOG, Fortune 500) and Facebook (FB, Fortune 500), already have paid-connection deals with big ISPs. Comcast vice president David Cohen said in response to Hastings that these arrangements "have been an essential part of the growth of the Internet for two decades."

Dan Rayburn, an industry analyst at Frost & Sullivan, says it's not clear that the ISPs are to blame for customers' lagging Netflix speeds. In a blog post Friday, he noted that Netflix has the option of rerouting the traffic it sends to ISPs when congestion occurs at one connection point.

The heart of the problem is that high-speed Internet networks are extremely expensive to deploy. There aren't many companies with the resources to do it, and there isn't enough competition in most regions to push ISPs to quickly upgrade their infrastructure.

Paid-connection deals like the one between Comcast and Netflix are part of the way the broadband industry wants to address this issue. But Hastings says this cost-sharing doesn't make sense if the ISPs aren't also willing to share subscription revenue.

"When an ISP sells a consumer a 10 or 50 megabits-per-second Internet package, the consumer should get that rate, no matter where the data is coming from," Hastings wrote in his blog post.

Related: Court strikes down net neutrality rules

ISPs have accused Netflix of "dumping" data onto their networks, a characterization that Hastings rejected.

"Netflix isn't 'dumping' data; it's satisfying requests made by ISP customers who pay a lot of money for high speed Internet," Hastings wrote. "If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future."

Going forward, broadband providers would like to move to a tiered pricing structure for customers depending on how much data they consume, similar to those offered by mobile carriers.

"[I]t's unfair to ask lighter users to subsidize super-user activity," the NCTA says.

But part of that formula will likely involve letting content providers subsidize consumer data consumption that goes toward their services. AT&T announced this kind of "sponsored data" program earlier this year for the mobile Web. The worry with this system is that it favors established companies that can pay up for speedy delivery of their content, putting smaller firms at a disadvantage and potentially stifling innovation.

"On a tiered Internet controlled by the phone and cable companies, only their own content and services -- or those offered by corporate partners that pony up enough 'protection money' -- will enjoy life in the fast lane," the advocacy group Free Press says.

First Published: March 21, 2014: 5:34 PM ET

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No winners for $1 billion NCAA challenge

NEW YORK (CNNMoney)

The $1 billion prize for a perfect NCAA bracket that his Berkshire Hathaway (BRKA, Fortune 500) was backing will go unclaimed.

None of the fans who signed up for the perfect bracket challenge sponsored by Quicken Loans and Yahoo Sports made it out of the first round of 32 games played without at least one mistake. The two firms would not say how many fans entered the free contest.

Buffett sold an insurance policy to Quicken Loans and Yahoo (YHOO, Fortune 500) which would have compensated them if they had to pay out the 10-figure sum.

One estimate puts the odds of picking a perfect bracket at 9.2 quintillion to one -- an awkward, rarely-used number that can also be thought of as 9.2 billion-billion. Those odds are longer than the likelihood of winning Powerball and Mega Millions in the same weekend.

Related: College basketball's real billion dollar winner

But the 9.2 quintillion estimate assumes each team has a 50% chance of winning every game, which is probably not the case. Others have put the odds at a marginally better 7.4 billion to 1. That's 42 times worse than your chance of winning Powerball.

"There is no perfect math...There are no true odds, no one really knows," Buffett told CNN in January when the challenge was announced.

The odds became even longer with upsets this week. In Thursday's opener, 84% of fans picked Ohio State to win, only to see the University of Dayton upset its rival. Then on Friday upstart Mercer University knocked off perennial powerhouse Duke, which was the choice of 98% of fans with Yahoo brackets.

The tournament is so popular partly because of the history of first-round upsets that play havoc with fans' brackets.

Related: More billionaires pledge to give away fortunes

CBS Sports, which runs one of the bigger bracket challenges, says that in the past two years its final perfect brackets were eliminated in the 22nd and 23rd games of the tournament, or about two-thirds of the way through the first round.

ESPN reports that of the roughly 30 million entrants it's had over the 13 years, no one has come close to a perfect bracket, and that only one person has had a perfect first round in the last seven years.

"I don't want to say it's impossible, but it's basically impossible," said John Diver, director of product development for ESPN Fantasy.

First Published: March 22, 2014: 9:51 AM ET

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Are Netflix users ripping off the rest of us?

Reed Hastings says Netflix is "reluctantly" paying for faster connections to broadband networks.

NEW YORK (CNNMoney)

Hastings sounded off Thursday on the likes of Verizon (VZ, Fortune 500), Comcast (CMCSA, Fortune 500) and others, accusing them of "sacrific[ing] the interests of their own customers" in demanding fees to ensure quick delivery of content from Netflix (NFLX) and other data-intensive services.

The dispute flared up earlier this year following news that Netflix streaming speeds for customers of major ISPs were slowing, as these firms attempted to extract a fee from Netflix in exchange for connecting directly to their networks and resolving the issue.

Netflix announced an agreement with Comcast last month under which it will indeed pay for a connection, and has been in talks with Verizon as well.

Hastings said his company was engaging in these talks "reluctantly." He accused the ISPs of abusing their market power and short-changing customers.

Related: New chapter begins in net neutrality fight

But the ISPs tell a very different story. They point to the fact that Netflix generates a massive amount of data consumption -- around a third of traffic online during peak hours -- while sticking them with the ever-increasing delivery costs.

The National Cable and Telecommunications Association says just one percent of broadband subscribers -- primarily heavy streaming-video users -- consume nearly 40% of bandwidth going into homes.

Other big tech companies, including Microsoft (MSFT, Fortune 500), Google (GOOG, Fortune 500) and Facebook (FB, Fortune 500), already have paid-connection deals with big ISPs. Comcast vice president David Cohen said in response to Hastings that these arrangements "have been an essential part of the growth of the Internet for two decades."

Dan Rayburn, an industry analyst at Frost & Sullivan, says it's not clear that the ISPs are to blame for customers' lagging Netflix speeds. In a blog post Friday, he noted that Netflix has the option of rerouting the traffic it sends to ISPs when congestion occurs at one connection point.

The heart of the problem is that high-speed Internet networks are extremely expensive to deploy. There aren't many companies with the resources to do it, and there isn't enough competition in most regions to push ISPs to quickly upgrade their infrastructure.

Paid-connection deals like the one between Comcast and Netflix are part of the way the broadband industry wants to address this issue. But Hastings says this cost-sharing doesn't make sense if the ISPs aren't also willing to share subscription revenue.

"When an ISP sells a consumer a 10 or 50 megabits-per-second Internet package, the consumer should get that rate, no matter where the data is coming from," Hastings wrote in his blog post.

Related: Court strikes down net neutrality rules

ISPs have accused Netflix of "dumping" data onto their networks, a characterization that Hastings rejected.

"Netflix isn't 'dumping' data; it's satisfying requests made by ISP customers who pay a lot of money for high speed Internet," Hastings wrote. "If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future."

Going forward, broadband providers would like to move to a tiered pricing structure for customers depending on how much data they consume, similar to those offered by mobile carriers.

"[I]t's unfair to ask lighter users to subsidize super-user activity," the NCTA says.

But part of that formula will likely involve letting content providers subsidize consumer data consumption that goes toward their services. AT&T announced this kind of "sponsored data" program earlier this year for the mobile Web. The worry with this system is that it favors established companies that can pay up for speedy delivery of their content, putting smaller firms at a disadvantage and potentially stifling innovation.

"On a tiered Internet controlled by the phone and cable companies, only their own content and services -- or those offered by corporate partners that pony up enough 'protection money' -- will enjoy life in the fast lane," the advocacy group Free Press says.

First Published: March 21, 2014: 5:34 PM ET

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Taxpayers hit with fewer audits

NEW YORK (CNNMoney)

The agency audited 1.4 million people last year, down 5% from 2012 and the lowest number of audits conducted since 2008, according to IRS statistics released Friday.

The IRS blamed its shrinking budget for the drop-off, saying "an ongoing decline in appropriate funding presented challenges."

Related: 10 tax audit red flags

Since 2010, the agency's budget has been reduced by almost $1 billion and around 10,000 employees have been cut. Under the 2014 budget, the IRS will receive $11.3 billion -- nearly $2 billion less than the White House had requested for the agency and a $526 million drop from 2013.

Meanwhile, government spending cuts last year forced the IRS to furlough workers without pay for three days, making it even harder for the agency to keep up with its workload.

To cut costs, the IRS has been conducting more audits by mail than in person. Last year, more than three-quarters of examinations were correspondence audits, and the rest were field audits -- meaning they were conducted at an IRS office or a taxpayer's home.

Related: Quiz - 7 surprising 2014 tax facts

And while the overall number of audits was low, at around 1% of all taxpayers, there are still certain groups that aren't getting a break.

One of those groups is the rich: About 9% of taxpayers with income between $1 million and $5 million were audited last year, and that rate rose to 16% for those with income between $5 million and $10 million. For the nation's top earners, with income over $10 million, the audit rate was 24%.

Business owners are also more likely to be audited, and so are taxpayers who claim a home office deduction or the Earned Income Tax Credit. Reporting -- or failing to report -- a foreign bank account could also lead to additional scrutiny, as the IRS continues to crackdown on people hiding offshore income.

Related: Tax season unleashes cyberscams

In addition to being unable to conduct as many audits, the agency's taxpayer assistance has been deteriorating, the National Treasury Employees Union said in a statement Friday.

"We are seeing the results of these reductions in staffing, particularly in customer service, all across the country," NTEU president Colleen Kelley said. "Both taxpayers and employees are frustrated by the lengthy lines at Taxpayer Assistance Centers and the long telephone hold times for those who call the IRS with a question."

First Published: March 21, 2014: 4:58 PM ET

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Obamacare: Some may have more time to finish applications

The administration may let some people finish their Obamacare applications after March 31

NEW YORK (CNNMoney)

Administration officials have repeatedly said they are not extending the open enrollment deadline. But they are now considering giving those who start applying for health insurance by month's end additional time if they run into technical trouble during the application process. A similar grace period was put in place in December to allow applicants to sign up in time to obtain coverage by Jan 1.

"As was the case for the December deadline, we're going to want to make sure that people who are already in line can finish their enrollment," Press Secretary Jay Carney said Friday.

Back in December, some people who missed the deadline on the 23rd were given an extra day if they had started their applications but couldn't pick a plan because of technical issues. The federal exchange saw record-high traffic on Dec. 23.

Eligible applicants were directed to the federal exchange call center for instructions on how to obtain coverage in the new year. The 14 states running their own exchanges instituted their own extensions, some beyond the 24th.

"We are preparing for a surge in enrollment, and if consumers are in line on the 31st and can't finish, we won't shut the door on them," said Dept of Health and Human Services spokeswoman Joanne Peters.

"To be clear, if you don't have health insurance and do not start to sign up by the deadline, you can't get coverage again until next year," she said.

Administration officials have said they expect a similar last-minute crush to exchange websites as the March 31 deadline approaches.

Some states running their own exchanges are already giving applicants more leeway. The Nevada Health Link board decided Thursday to create a special enrollment period for people who are not able to complete the process by month's end. Those who apply online, by phone or through paper forms but run into technical issues have until May 30 to finish signing up.

Americans who don't have insurance this year will face a penalty of $95, or 1% of income, whichever is greater.

More than 5 million people have picked plans, with more than 800,000 signing up in the first half of March alone. The administration and consumer advocates are doing a final outreach push before the final deadline.

-- Additional reporting by CNN Senior White House correspondent Jim Acosta

First Published: March 21, 2014: 4:37 PM ET

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IRS monitor: $1 million phone scam 'largest ever'

The phone scam stole at least $100 million.

NEW YORK (CNNMoney)

That's the warning from federal authorities, who on Thursday said a nationwide phone scam has stolen $1 million from thousands of unsuspecting people.

The impostor claims to be an Internal Revenue Service representative and tells "intended victims they owe taxes and must pay using a pre-paid debit card or wire transfer," an IRS inspector general office said.

Related: 10 tax audit red flags:

"The scammers threaten those who refuse to pay with arrest, deportation or loss of a business or driver's license."

The IRS has received more than 20,000 reports about the scam.

J. Russell George, the Treasury inspector general for tax administration, called it "the largest scam of its kind that we have ever seen."

According to the inspector general, IRS officials typically first reach out by mail rather than phone, and don't demand immediate payment by debit card, credit card or wire transfer.

Related: 7 surprising 2014 tax facts

The IRS said people who receive such calls or other suspicious requests should contact the IRS.

Tax-related phone scams are among the "dirty dozen" fraud techniques the IRS warned about earlier this tax season. It also warned of phishing emails, preparer fraud and claims a preparer can offer "free money."

First Published: March 20, 2014: 8:21 PM ET

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3 simple steps to get out of debt

Unexpected medical expenses or a job loss can push many into a debt spiral.

NEW YORK (Money Magazine)

By most counts, the average U.S. household carries more than $5,000 in credit card debt. And it's not just spendthrifts who get in over their heads. For many, unforeseen expenses or job loss are to blame.

"When you don't have an emergency fund, credit may be your only safety net," says Barbara Steinmetz, a certified financial planner in San Mateo, Calif.

If your personal balance sheet is out of whack, for whatever reason, you have three options: "You can spend less, earn more, or do both," says Gail Cunningham of the National Foundation for Credit Counseling.

That's the gist of it, no doubt; but as anyone who's ever tried to unravel the debt spiral knows, there's a little more to it than that. Here's how to get on track:

Step one: Assess the damage

If you haven't already, take stock of exactly how much you owe, to whom and at what rates.

Many people with high levels of debt routinely shift the burden from one place to the next, never taking a total tally.

"It's easy to convince yourself you don't have a debt problem if you don't face the numbers," says Steinmetz. She recommends putting everything on the table, including credit cards, car loans, student loans and even the mortgage -- though consumer debt should be your first priority.

Related: Six steps for building a better budget

Then, do three critical calculations:

How much do you owe on your credit cards and other consumer loans?
How much do you spend each year on interest?
How much of your monthly salary goes toward that debt?

Step two: Get to the root of the problem

Before you transfer your high-interest debt (again) or start thinking about tapping your retirement savings "just this once," be honest about what circumstances or habits got you to this place.

"People put all sorts of fixes in place but avoid probing the root of the problem," says Cunningham.

Don't have the faintest idea where it all went? That may be the most worrisome, says Steinmetz.

If you haven't already, start tracking your spending -- both to understand your weak spots and identify areas where you can cut back. You can do this the old-fashioned way -- by saving receipts and plugging numbers into a spreadsheet -- or with one of the many free programs available, such as Mint.com or Quicken.

Step three: Make it a team effort

Rather than make an executive decision about where to cut expenses, call a family meeting. "If it's a joint effort you'll have much greater results," says Cunningham.

Everyone, including kids, should be involved with tracking the family spending and coming up with ideas for where to trim expenses. "Cutting back is almost always better than cutting out," she adds. "I could work out a beautiful budget not worth paper the printed it's on if you can't stick with it."

Related: 10 most common financial leaks: Plug them now!

You needn't necessarily tell your kids every detail of why or how much you owe, but they should understand why you need to make changes and what that entails.

"There is nothing wrong with sitting down with children and saying 'we cannot afford it,'" says Steinmetz. Don't think of it as depriving your kids, she says, but "teaching them the difference between needs and wants."

First Published: March 20, 2014: 5:16 PM ET

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