Three Mutual Fund Tax Hazards to Avoid

Three Mutual Fund Tax Hazards to Avoid

Investing in mutual funds is an easy way to diversify a portfolio, which is one reason why they are commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering such investments, beware of these three...

Make a 2015 contribution to an IRA before time runs out

Tax-advantaged retirement plans allow your money to grow tax-deferred—or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can’t be carried forward to make larger contributions in future years. So it’s a...

Avoid penalty, take RMDs by Dec. 31

After you reach age 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). You also could be required to take RMDs if you inherited a retirement...

Before you donate, check charity’s eligibility

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. But before you donate, it’s critical to make sure the charity...