Ask Rande 10,000+

Top 256. Oct 8, 2001 12:39 PM

» Rande - Re: SEP-IRA question

In response to message posted by martin_lowe:

Martin,

For a SEP, contributions are treated as made on the last day of the calendar year if they are made by the due date (including extensions) of the employer's tax return for the tax year. You need to notify the custodian which tax year is applicable at the time of the contribution.

-- posted by Rande

Top 257. Oct 8, 2001 1:28 PM

» JenL_2 - Roth, IRA, 401(k) Inheritance rules

Rande - How do the Roth IRA, regular IRA and 401(k) plans differ for inheritance rules - assuming the surviving spouse would be the first beneficiary, and then the children the second beneficiaries. TIA....Jen

-- posted by JenL_2

http://www.irs.gov/prod/bus_info/ep/rmd_...

Top 258. Oct 8, 2001 1:41 PM

» Rande - Re: Roth, IRA, 401(k) Inheritance rules

In response to message posted by JenL_2:

Jen,

Spousal beneficiary is easy -- in all cases the surviving spouse can treat as his/her own and just roll over into existing IRA. For non-spousal benes it gets a little trickier and depends on whether required minimum distributions had started or not (except for Roth where no RMDs apply). The rules can be fairly complex, though the IRS has done some simplification recently. You can check it out at the following:

http://www.newrmd.com/

-- posted by Rande

Top 259. Oct 8, 2001 1:48 PM

» JenL_2 - Re: Roth, IRA, 401(k) Inheritance rules

In response to message posted by Rande:

Thanks Rande.....Jen

-- posted by JenL_2

Top 260. Oct 8, 2001 4:50 PM

» dewam - Tax loss season is coming

Rande: I doubled up on some of my losers after the bombing in NY. Now I wait 31 days, and sell my original shares. I am confused about the $3000 limit. Am I allowed to only use $3000 of losses per year, or can I balance gains against losses and use any amount as long I do not claim $3000 more losses than gains? I realize I can carry forward the losses over this amount Den

-- posted by dewam

Top 261. Oct 8, 2001 5:14 PM

» Rande - Re: Tax loss season is coming

In response to message posted by dewam:

Den,

There's no limit to the amount of gains you can offset with losses. If your losses exceed your gains in any given year, then you can offset ordinary income up to the $3,000 limit. Any losses in excess of all gains and $3,000 in ordinary income will be carried over to subsequent years without expiration.

-- posted by Rande

Top 262. Oct 8, 2001 6:16 PM

» dewam - Re: Re: Tax loss season is coming

In response to message posted by Rande:

Rande, my mother has bond income and interest income along with social security. If I do the tax loss selling in her account can it offset the bond income, or interest income beyond the $3000. Or are both those counted as ordinary income?

-- posted by dewam

Top 263. Oct 8, 2001 6:29 PM

» Rande - Re: Re: Re: Tax loss season is coming

In response to message posted by dewam:

Den,

Ordinary income. Interest, dividends, wages, Social Security, pensions, etc. are ordinary income, not to be confused with capital gains.

-- posted by Rande

Top 264. Oct 8, 2001 7:08 PM

» burkmorz - Re: Re: Re: Re: Tax loss season is coming

In response to message posted by Rande:

Rande, I'm trying to help a friend who bought some QQQ and is now sitting underwater with them (no, it's not me... smile ).

If she sells the cubes tomorrow for tax loss purposes and wants to maintain a similar positon, can she buy one of the beta funds immediately (such as RYVNX or UOPIX) and still qualify for the tax loss...(even though they attempt to double the daily return of the NDX) or would she have to buy something like XLK??

Thanks in advance for the response....

-- posted by burkmorz