Taxes Shelther a Short Term Mutual Fund account?
Tax haven short-term Mutual Fund account? I am 72 years old and I left $ 10,000 to start a short term (2-5 years) has divided reinvested to buy more shares. I heard that even though the dividends are reinvested, the reinvested dividends are considered taxable income for that year and I have to pay at the end of the year. Is this information correct? If so, How if a being capable of directing the dividends to be tax sheltered govn't hands. He'll be able to direct income to an IRA, but only $ 4000 is eligible for IRA, are there other ways to not get taxed in my divideds Mutual Fund and gains? Annuity? Political life? LTC?
You are correct. Dividends are taxed if they are reinvested or withdrawn. A municipal bond fund paying the dividends are exempt from federal income taxes, and may be exempted from state taxes, depending on which state is in Do not let the tax consequences be the main driving force of investment you choose, however. I prefer a yield of 12% of a liability account a 4% yield of a non-taxable.
Bruce Lefavi – Radio Highlights: Annuities
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