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 […]
Search Results for: mutual fund distributions
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.
Mutual funds that receive capital gains normally pay them out as capital gain distributions. This page describes a rarely used alternative, in which the mutual fund retains the capital gain and pays tax on it, but makes a capital gain allocation, which passes along to its investors the tax consequences of these events. Which Is which?
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
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
The special rules described on this page may convert some or all of your short-term loss into long-term loss — or into a nondeductible loss — when you sell shares held six months or less after receiving certain kinds of dividends. Overview When a mutual fund pays a dividend, the value of the fund goes
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
Q: My stocks went up but I didn’t sell yet. How much gain should I report? A: None! As a general rule you don’t report capital gain or loss until you sell. There are exceptions, such as when you receive capital gain distributions from a mutual fund. Q: Does a capital gain increase my income?
Guide to Capital Gains and LossesThis extensive guide covers all kinds of rules regarding capital gains and losses. Mutual Fund Tax GuideOur extensive guide to all the special tax rules that apply to mutual fund dividends and distributions, and sales of mutual fund shares. Tax Guide for TradersPeople who do a lot of short-term trading