Tax Shelther a Short Term Mutual Fund account? - short mutual funds
Tax havens short-term funds account?
I am 72 years old and I have 10,000 U.S. dollars to divide the short-term (2-5 years) reinvested to start to buy more shares. I've heard that even if reinvested the dividends, the reinvestment of dividends are considered taxable income for that year and you pay at the end of the year. Is that correct?
If so, how a being directed govn't dividends tax-free capable hands. Whether it becomes a direct income IRA, but only $ 4000 qualify for the IRA, there are other ways will not be broken in my taxable mutual funds and profit? Annuity? Politics? LTC?
Saturday, January 23, 2010
Short Mutual Funds Tax Shelther A Short Term Mutual Fund Account?
3 comments:
You are correct. Dividends are taxed if they are reinvested or withdrawn.
Be free to distribute A municipal bond fund, the dividends exempt from federal tax and may vary from state taxes that the state
Do not let the tax consequences of the main drivers of investment you choose, but are. I prefer a 12% return a liability account with a yield of 4% compared to a non-taxable.
You are correct. Dividends are taxed if they are reinvested or withdrawn.
Be free to distribute A municipal bond fund, the dividends exempt from federal tax and may vary from state taxes that the state
Do not let the tax consequences of the main drivers of investment you choose, but are. I prefer a 12% return a liability account with a yield of 4% compared to a non-taxable.
Since you are older than 70,5, which is no longer eligible to contribute to a traditional IRA. If you earned income such as wages or self-employed have, you can get $ 5,000 per year to a Roth IRA.
You are right about the treatment of dividends. Although to be invested in mutual funds every year and send you a 1099DIV. You agree to pay dividends and a maximum height of 15%, provided they are qualified "dividends are likely.
Therefore, you can not run their dividends in a traditional IRA to a Roth IRA but also, possibly, if you qualify. If you decide to buy, insurance for long-term care, which is a deductible expense. If you have any medical deductions at least my long-term care insurance to its nature, offers tax-free dividends, the LTC insurance premiums.
If you buy the proceeds of their investment to a pension or life insurance, are not tax deductible, but have deferred tax.
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