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Where to put this money

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John

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Nov 10, 2003, 3:50:58 PM11/10/03
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Hi,

I have a mutual fund account that is not moving, and I don't expect it to
increase any further. I am interested in reinvesting the $9,000. I don't
expect to need it soon, but you never know. So, should I look into another
mutual fund, I-Bonds, or something else. If I can prove that it is 100%
reinvested, will I still have to pay capital gains this year if I do
withdrawal those funds? Is there a transfer or rollover mechanism that I can
use either inside the company I am with, or in general like into a Roth IRA,
etc.?

Thanks!

J


bob

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Dec 8, 2003, 12:43:12 AM12/8/03
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Is this mutual fund in a retirement account? If so you probably can roll it
into a similar account somewhere else tax free.

If it is just a regular account then the sale is a taxable event. No
reinvesting after the sale will change the taxes.

http://www.hostinghelps.com/bookman/freetaxadvice.htm is tax and retirement
account info.

http://www.hostinghelps.com/bookman/stock1.html is stock and such questions
and answers much like this question. Both pages are info not spam.

"John" <jlo2day...@yahoo.com> wrote in message
news:SSSrb.164589$Fm2.144349@attbi_s04...

LittleBit

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Dec 8, 2003, 6:48:56 AM12/8/03
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Hi, John.   Sounds like its in a 401k.  You have 60 days to roll into another deferred account like an IRA or RothIRA without incurring any income tax.  If you choose the RothIRA, you will be converting & that is a taxable event but won't trigger the 10% penalty for early withdrawal if you're <59½.  Read IRS Publication 590 on IRA rules, which you can get at the library or directly at the IRS website:  www.irs.ustreas.gov   MSN MoneyCentral has excellent tax information as well.   As for choosing another stock/bond fund or gov. bonds, there are others here better at giving you that advice.  Jim Jubak & Jon Markman at MSN MoneyCentral are excellent sources of info, too.   --  LB

LittleBit

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Dec 8, 2003, 7:59:46 AM12/8/03
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Correction:  You have 60 days to roll into another deferred account like an IRA or RothIRA without incurring any capital gains tax.  If you choose the RothIRA, you will be converting & that is a taxable event (income tax) but won't trigger the 10% penalty for early withdrawal if you're <59½. 
Hi, John.   Sounds like its in a 401k.    Read IRS Publication 590 on IRA rules, which you can get at the library or directly at the IRS website:  www.irs.ustreas.gov   MSN MoneyCentral has excellent tax information as well.   As for choosing another stock/bond fund or gov. bonds, there are others here better at giving you that advice.  Jim Jubak & Jon Markman at MSN MoneyCentral are excellent sources of info, too.   --  LB
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