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By JULIUS WESTHEIMER | February 16, 2001
Notes and quotes about your money: STAY ALERT: "Many retirees find themselves with more tax-deferred assets than they need. They often let these accumulate until distribution date, when they discover that the distributions put them in a higher tax bracket - sometimes higher than during their working years." (Individual Investor) Ticker suggestion: Review your tax-deferred portfolio with your tax person, accountant or financial planner. HOPEFUL NOTE: "Don't expect another disaster like the dot-com collapse any time soon," says fund manager Neil Eigen.
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BUSINESS
By Humberto Cruz and Humberto Cruz,TRIBUNE MEDIA SERVICES | August 19, 2007
Last month, I sold all the shares of a couple of stock mutual funds in my traditional individual retirement account and used the money to buy bonds for the IRA. That same day, I used some of my cash reserves to buy the exact number of shares of the same stock funds in a taxable account outside the IRA. While there are no tax consequences now, I figured the switch could save me quite a bit in taxes in the long run. I have since read a paper from a...
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BUSINESS
By JULIUS WESTHEIMER | November 19, 1997
VARIABLE ANNUITIES became popular by offering tax-deferral on underlying mutual funds. But now that the new tax law is cutting the maximum capital gains tax from 28 percent to 20 percent, many people are asking whether the tax-deferred annuities make sense for them.What exactly is a variable annuity?It is a mutual fund, or funds, inside a tax-deferred insurance wrapper. Investments are made in mutual funds offered by the particular annuity."Annuities still hold attraction," says S&P Outlook, adding, "Although reduction in the top capital gains rate from 28 to 20 percent lessened their appeal, some investors may find them worthwhile."
BUSINESS
By Eileen Ambrose and Eileen Ambrose,Sun Columnist | October 17, 2006
Kevin, of Towson, is building his retirement nest egg and trying to decide between two investment options. The 28-year-old has a tax-deferred retirement plan at work, but there's no employer match. He has been advised to put his money into a Roth IRA. But he wonders whether the Roth is worthwhile if he's able to contribute money for only a few years before his rising income makes him ineligible. What if he has, say, $10,000 in the Roth and then no longer can contribute? "Although I won't be taxed on whatever that compounds to when I'm 60, it doesn't seem like it would be worth it," he e-mailed.
BUSINESS
By JULIUS WESTHEIMER | April 5, 2000
If you plan to retire soon, Money magazine suggests investing the maximum amount you can in a tax-deferred account. "Invest heavily in stocks and mutual funds to maximize growth and keep you ahead of inflation," the article says. "Consider variable annuities, but buy only low-cost ones. Don't tap tax-deferred accounts for loans or early withdrawals, both to maximize the power of compounding and to avoid penalties and taxes." It also warns, "Don't count on seeing your living expenses fall in retirement.
BUSINESS
By Ann Perry and Ann Perry,Copley News Service | March 21, 1993
Back in the mid-1980s, Michael did what many American workers did.He took advantage of existing tax breaks to invest thousands of dollars in an individual retirement account, or IRA.But Congress sharply curtailed the IRA tax benefits for middle- and upper-income taxpayers in 1986."
BUSINESS
By Jane Bryant Quinn | September 23, 1996
WHATEVER baby boomers want, they get -- and what they want now are bigger tax breaks for retirement accounts. Last month, the government delivered. Tacked to the rise in the minimum wage are 31 aids to saving money tax-deferred.Most of the changes take a trickle-down approach. They give richer options to the boss, in the hope he or she will pass the beneficence down the ranks. Just in case that doesn't happen, the law offers workers a few direct tax savings, too.Among the money-saving changes:Larger maximum contributions to 401(k)
BUSINESS
By JANE BRYANT QUINN and JANE BRYANT QUINN,1992 Washington Post Writers Group | March 1, 1992
New York -- Memo to investors who are now being blitzed by insurance agents selling a "last chance" to buy tax-deferred annuities.Relax.There may indeed be a "last chance" someday. But it won't be now.What started the blitz was President Bush's State of the Union message, in which he proposed to end the tax deferral for certain annuities. In general, he'd allow the tax shelter only for people who agreed to keep their annuities for life. He'd also leave pension annuities alone.But you wouldn't be allowed to chuck money into a tax-deferred annuity for just a few years and then cash out.Within a few days after the speech, I was deluged with letters and faxes from insurance agents, urging that I advise readers to buy an annuity quick, before it melts.
BUSINESS
By Sylvia Porter and Sylvia Porter,1989 Los Angeles Times Syndicate | October 31, 1990
With confidence in the securities markets eroding, the economic outlook cloudy and higher taxes a threat, people like you are looking for safe harbors. What better than an investment that guarantees you a fixed income for life, with the interest build-up tax deferred?That's what many of you concluded in the late 1980s when you made annuities a "hot" new investment. The life insurance industry is betting you'll make annuities an even hotter investment in the 1990s.Highly promoted and widely debated, annuities achieved a sales increase of about 34 percent in 1989.
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,LOS ANGELES TIMES | April 8, 2001
Last week, my husband withdrew $20,000 from his 401(k) plan to help pay off a debt. As things turned out, the withdrawal was unnecessary. The silly man did not think to check with me, and I had another resource to cope with the need. He forfeited about $4,500 in penalties and prepaid taxes on the amount he withdrew. Can he redeposit the withdrawn amount and not be subject to the tax? Is there a time frame within which such redeposits may be made without penalty? The silly man, indeed.
BUSINESS
By Eileen Ambrose and Eileen Ambrose,SUN STAFF | September 17, 2005
T. Rowe Price Associates will continue managing Maryland's college savings plan for at least another seven years after agreeing to cut some of the fees paid by participants, plan officials said yesterday. The Baltimore-based investment company outbid four competitors for the contract to manage the Maryland College Investment Plan. The other bidders were TIAA-CREF and OppenheimerFunds, both based in New York; Union Bank & Trust Co. in Nebraska; and Massachusetts-based Upromise, which is affiliated with the Vanguard Group.
BUSINESS
September 11, 2005
Q: I am currently a resident of Florida and only use my Maryland house for a few months each summer. I will be facing capital gains tax at some point in the future when I sell my Maryland house. I know that with investment property, you can arrange a sale so that the capital gains can be deferred if you put the proceeds into another investment property of equal or higher value. However, my Maryland property is a second home, not an investment property. Would it be possible to sell my second home, put the money into an investment property and defer the capital gains?
BUSINESS
By EILEEN AMBROSE | March 28, 2004
THE INDIVIDUAL retirement account turns 30 this year, but the birthday celebration is likely to pass without a lot of fanfare. IRAs don't seem to generate a lot of excitement among investors these days. The annual contribution limit is smaller than some other tax-deferred accounts. The rules are complicated. Last year's tax law reduced the tax rate on capital gains and dividends, raising the attractiveness of investing outside an IRA. And President Bush has proposed a new account to replace IRAs.
NEWS
By Eileen Ambrose and Eileen Ambrose,SUN STAFF | September 4, 2003
More than 220 private colleges, from Princeton to South Bend's Notre Dame, are offering a sweet new deal to parents daunted by the soaring cost of a quality college education. Parents who sign up can prepay all or part of tomorrow's tuition at a cost slightly below today's prices, under the new tax-deferred plan announced yesterday by the Tuition Plan Consortium, a nonprofit organization that will oversee the program. Parents, grandparents or others choosing to participate will purchase "tuition certificates" through TIAA-CREF, an independent financial services organization that will manage the investments.
BUSINESS
By Kenneth Hooker and Kenneth Hooker,THE BOSTON GLOBE | July 13, 2003
I am 31 years old, married, and have children who are 3 and 6 years old. I earn $90,000 annually and am the sole wage earner in the family. We own a home worth about $410,000 and owe about $287,000 on the mortgage. My current portfolio comes to $26,375, all in IRA accounts. Of this, $3,113 is in a money market fund, and I plan to move it once I find a good home for it. I am also contributing the $12,000 maximum allowed in my employer's 401(k) program, and my employer, a large and successful pharmaceutical company, matches this with $3,000 worth of its common stock.
BUSINESS
By EILEEN AMBROSE | January 26, 2003
PRESIDENT Bush's proposal to eliminate the income tax that investors pay on dividends has generated speculation about winners and losers. At first, it seemed as if the winners would be dividend-paying stocks, especially preferred shares that pay high dividends. Among the potential losers, it seemed, would be tax-free municipal bonds that would face new competition from stocks and 401(k) investors who would still have to pay income tax on reinvested dividends once they took money out of the plan.
BUSINESS
By Jeff Brown and Jeff Brown,KNIGHT RIDDER/TRIBUNE | January 9, 2000
Many investors share a hope: that Washington will someday allow them to put unlimited sums into tax-favored accounts. But for now, they are stuck with rules that limit annual contributions to $2,000 for IRAs and $10,000 for 401 (k)s. If only more could be put in! Imagine the gains that would be realized with no tax on profits for decade upon decade. Actually, you can do just as well in an ordinary, taxable account if you manage things right. In fact, you could do "better" in a taxable account, according to a study by PricewaterhouseCoopers LLP. That's because some of the tax-deferred accounts come with strings attached.
BUSINESS
By Liz Pulliam and Liz Pulliam,LOS ANGELES TIMES | December 26, 1999
We gave our granddaughter $10,000 from my wife's Keogh this year. We had started taking annual distributions from the account, although for a smaller amount. Our income tax preparer said the gift is not deductible. Our son, who is very knowledgeable about income taxes, says this is a one-time gift to a relative and is deductible. Who is right?Not your son, that's for sure. Gifts to individuals are never tax-deductible, one time or any time. This makes me wonder what other advice he's given that could be injurious to your financial health.
BUSINESS
By JULIUS WESTHEIMER | June 8, 2001
EVEN STOCKS IN defunct companies can have value, says John Markese, president of the American Association of Individual Investors. "You have a tax loss based on what you originally paid," he points out. "Know the date when the stock became worthless to establish your loss. Also, think through what you can learn from having owned the stock. Why did you buy it in the first place? What went wrong? Why didn't you sell before it lost value? Use the answers to make better investments in the future."
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