- Joined
- Mar 8, 2005
- Messages
- 3,435
- Reaction score
- 11
Hi guys. I'm a 3rd year medical student that has about $30,000+ invested in regular mutual fund accounts (started investing around 1999). I don't work, so I don't have a regular income (outside of annual dividends I receive from my mutual funds and have them automatically re-invested). I am thinking of shifting most of my investments into an index fund.
A couple of questions...
1) If I cash everything out and end up with a net (+) $5,000 profit. After I pay the capital gains tax (assume 20%; not exactly sure what it is), can I consider that remaining + $4000 as income that can be used to contribute to a Roth IRA?
1a) If I immediately had all of the money re-invested into another mutual fund (all $30,000+), and never actually had any of it cashed out to my bank account. Is this still considered realizing a profit for tax purposes?
2) I also have about $3,000 in a pre-existing Roth IRA account (in a Janus mutual fund). If I shift that to another mutual fund (the index fund), is that considered a taxable event? And does that have any effect on my previously mentioned $4,000 contribution (since the max annual contribution is $5,000 as of 2008)?
3) Capital gains tax... for the first few years (1999-2003) I failed to report my capital gains off of distributions (I moved around a lot, forgot to update my address to the mutual funds and didn't receive the necessary 1099 forms).
For 2007, my 1099 DIV forms were... "2a Total capital gain distr: $438.80"
What is the best way to address the missed previous years?
Thanks!!!
A couple of questions...
1) If I cash everything out and end up with a net (+) $5,000 profit. After I pay the capital gains tax (assume 20%; not exactly sure what it is), can I consider that remaining + $4000 as income that can be used to contribute to a Roth IRA?
1a) If I immediately had all of the money re-invested into another mutual fund (all $30,000+), and never actually had any of it cashed out to my bank account. Is this still considered realizing a profit for tax purposes?
2) I also have about $3,000 in a pre-existing Roth IRA account (in a Janus mutual fund). If I shift that to another mutual fund (the index fund), is that considered a taxable event? And does that have any effect on my previously mentioned $4,000 contribution (since the max annual contribution is $5,000 as of 2008)?
3) Capital gains tax... for the first few years (1999-2003) I failed to report my capital gains off of distributions (I moved around a lot, forgot to update my address to the mutual funds and didn't receive the necessary 1099 forms).
For 2007, my 1099 DIV forms were... "2a Total capital gain distr: $438.80"
What is the best way to address the missed previous years?
Thanks!!!