Search Results for: mutual fund distributions

Conversion Consequences

Conversion of a Roth IRA is in some respects similar to a rollover. Unlike rollovers, however, a conversion from a traditional IRA to a Roth IRA is taxable. Amount taxable If all of your contributions to all of your traditional IRAs have been deductible, then the full amount of your rollover is taxable. Q: Can …

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How to Start a Roth IRA

Edited November 4, 2023 Starting a Roth IRA isn’t difficult. Any number of providers are more than happy to make this process easy for you. This page covers both the thought process you should go through and the practical steps you need to take. Outline To start a Roth IRA you need to take the …

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Roth IRA Rules of Thumb

Edited November 4, 2023 There are plenty of details on choosing between a traditional account and a Roth account elsewhere in this guide. This page is for those of you who don’t want to plow through lots of analysis — or who want a quick way to check whether you came to the right conclusion. …

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Foreign Tax Paid

Some mutual funds invest overseas. These funds are likely to incur foreign taxes on interest, dividends or other income. If the mutual fund meets certain requirements it can allocate this foreign tax to its shareholders, providing them with a tax benefit. If you receive a foreign tax allocation you have a choice. You can claim …

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Federal Interest Dividends

Some mutual funds invest in Treasury securities and other obligations of the United States government. Interest received by the mutual fund will be included in the ordinary dividend you receive. This type of interest is fully taxable for federal income tax purposes, but may be exempt from state income tax. State exemption for federal interest …

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Using the Average Basis Method

This page explains the average basis method for mutual fund shares. You may want to know this so you can perform these calculations in a situation where figures provided by your mutual fund company are not accurate, or simply to have a general understanding of how this method works. Typically this method is easier to use than the separate lot …

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