Important Dates For October
A friend of mine recently asked: “What are the top 5 Index Funds?” My answer is, “it depends.”
Index funds or ETFs are portfolios constructed to match or track a pre-specified basket of underlying investments. By definition, most have the same fundamental makeup. For example, an S&P 500 ETF holds stocks from 500 US Companies that represent 25 industry groups listed on the NASDAQ. A total bond fund ETF invests solely in bonds from public and private sectors, and with varying strategies, maturities, and ratings.
You may have heard of the Net Unrealized Appreciation (NUA) tax break. This is a special rule that allows you to qualify for capital gains treatment on distributions of appreciated employer stock from your employer plan. With the market doing well, now may a be a time when this strategy is more appealing than ever. You may understand the basics of how these rules work but here are five facts about NUA that may surprise you.
What is an IRD deduction?
An IRD (Income in Respect of a Decedent) deduction is a way of offsetting the impact of double taxation on federal estate tax and income tax on certain inherited assets. It is an income tax deduction for the beneficiary (miscellaneous itemized deduction, not subject to limitations).