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Mutual funds for dummies - Tyson E

Tyson E. Mutual funds for dummies - Wiley publishing , 1998. - 425 p.
ISBN 0-7645-5112-4
Download (direct link): mutualfundsfordummies1998.pdf
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r :
Soda) Securty Number
Date of Birth
OieckiheboxtotnatcateihewpenfTRAlnmtmenfyoo^aremaking—" annual IRAcontribuaon: tnmsier. or rollover-—and provide the fnfonna-^ don specified for your investment type. The minimum Investment perfond is 51,000.*
If making an annual contrtnuuon. mease list traditional IRA and Roth IRA contributions separately. The maximum amount (hat you may contribute to all IRA* for a tax vear is >/.000. ' -
Q Annua! Contribution. Enclose a checkpayable to T. Rowe Price Trust Company. If no IRA désignation lis indicated, your contribution wiifbe made to a traditional IRA for the year in which it was received. Please note: Contributions to a Roth IRA are not available prior to 1998.
Fund Name
2 Prm itlc loin Ail live
Street or P.O. Box
Trecftional IRA Amount
Daytime Phone Ext : :
Evening Phone Ext
□□□ DfflGL
Employers Name
Employer's Address
□□□□■ $S, □□□.□□
Roth'IRA Amount
1 9 9 8 $ін:лпппп
Fund Name
Г~~......................: ■;
Tax Year Tracfitional IRA Amount
; ■ Roth IRA Amount
O Trarmfw^frum amexf»tlng1RA).- Plea5e complete the attached IRA Transfer Form also.
□ RoilOVSr.Endosea check payable to T. Rowe Price -Trust Company.
Please check the box corresponding to the source of money nowbeing rolled over, T. Rowe Pnce will establish the same type of IRA for you.
□ Tratfibonal Corrtitoution IRA DTradUonal RoOoverIRA .
(Established with funds received from a qualified
Onnii ,in-.n ms plan (flstrttxrtion.) Ifai
Rofh Contribution IRA are oomlnp dkectiy from the
Q Roth Conversion IRA T. Rowe Price Fund Name
company pian, request a Rollover IRA application.
Figure 11-5:
Mutual fund IRA application form.
Dollar Amount
T. Rowe Price Fund Name
'SummitFundshtvthitherminUnemx »15,000 for lnUUllmtumtnu«it<t$l,000r«
Source: T. Rowe Price
275 Part II: Establishing a Great Fund Portfolio
2. Provide Your Address. See, this isn’t so hard. Enter your mailing address and phone numbers.
3. Provide Employer Information. You don’t have to provide this information if you don’t want to.
4. Choose Your Investment Method. Choose one of three methods, each one corresponding to a little check box along the left side of the column. Here’s what each of these little boxes allows:
v* Annual Contribution. This is the box you check if you’re opening up a new IRA account with money previously held outside any kind of retirement account. You must specify which kind of fund(s) you want to buy, how much you’ll be contributing (up to $2,000), which kind of IRA you want to open (traditional or Roth), and which tax year you’re making your contributions for. You have until the time you file your tax return (the deadline is April 15) to make a contribution for the previous year. (I explain the various types of retirement accounts, including IRAs, in Chapter 3.)
Transfer (from an existing IRA). If you want to move an IRA from another investment firm or bank into your new mutual fund IRA, check this box. You also need to complete an IRA transfer form (which I explain in the “stuff to do before transferring retirement accounts” section). This is the best way to move an existing IRA because it presents the least hassle and the fewest possibilities of a tax screw-up.
u* Rollover. Withdrawing the money yourself from another IRA and sending it yourself to the new account is not a good way to transfer your IRA. The big danger is that if you don’t get the funds back into the new account within 60 days, you’ll owe mega-taxes (current income tax plus penalties).
If you’re rolling over money from an employer-sponsored plan such as a 401(k), you can check the small box labeled “Traditional Rollover IRA.” Tax advisors usually recommend that money coming from your employer’s plan should go into a rollover account. This choice allows you to someday transfer the money back into another employer’s plan. Of course, you can choose investments in your own IRA, so this may sound like a silly reason to use a “Rollover IRA.” An advantage to establishing a contributory IRA, instead, is that you can add to it with future IRA contributions. You can also merge it with other IRA accounts.
Don’t request that your employer issue you a check because your employer must withhold 20 percent for taxes. If you want to roll the full amount over — a wise move — you must come up with the missing 20 percent when you deposit the money into your IRA. Otherwise, you owe tax and penalties on it. Establish your IRA and then instruct your employer to send your money directly to that account.
Chapter 11: Application, Transfer, and Other Neat Forms
5. Select Your Account Service Options (see Figure 11-6). Here, you can pick and choose from the various service options that come with your IRA account. Some of them, such as telephone/computer exchange, are automatically available with your account unless you specify otherwise. In this section, you can also set up an automatic investment plan; contributions to your IRA can be regularly deducted from either your bank checking account or your paycheck itself.
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