From: "Jeff Salisbury" Subject: (Fwd) Asset Allocation for new automobile Date: 01 Feb 1999 08:48:25 -0700 --- Forwarded mail from "Ray McKinnon" I have a general question. My wife and I have been fortunate to save money to pay cash for our next automobile ($20,000). Our investments are doing well, and college saving for our son is on target. We also have a rainy day fund. Our only debt is our home. Now, should we pay for the automobile out right, or finance it? and invest the monies. We have formulated a answer for our selfs, however we were wondering what other families would do in this situation. Thanks for any suggestions.... RMckinnon ---End of forwarded mail from "Ray McKinnon" - ------------------------------------------------------------------------------- From: Jacqueline.D.Richardson@Hitchcock.ORG (Jacqueline D. Richardson) Subject: Stock Question Date: 01 Feb 1999 13:57:40 EST I have started watching a few stocks and am trying to learn about the stock market with regard to individual stocks as opposed to mutual funds. I was just reading a press release on a stock I am watching and was wondering if someone could tell me what it means and what impact it may have or has on the stock. "Asia Properties, Inc announced today that the Company has retired 1.4 million shares of its founders' stock into API's treasury. The Company has 5,850,600 shares outstanding, following the retirement of the founders' shares. This represents an accretion of 19.30 percent for existing shareholders." What does it mean when they retire shares of founders' stock into its treasury? What does an "accretion of 19.30%" mean and how does it affect the stock people buy? Again, I'm new to following individual stocks and am trying to educate myself. Thanks a lot for your help and patience. j - ------------------------------------------------------------------------------- From: snarasim@genre.com Subject: Re: Stock Question Date: 01 Feb 1999 14:01:37 -0500 "Asia Properties, Inc announced today that the Company has retired 1.4 million shares of its founders' stock into API's treasury. The Company has 5,850,600 shares outstanding, following the retirement of the founders' shares. This represents an accretion of 19.30 percent for existing shareholders." What does it mean when they retire shares of founders' stock into its treasury? What does an "accretion of 19.30%" mean and how does it affect the stock people buy? Again, I'm new to following individual stocks and am trying to educate myself. Thanks a lot for your help and patience. Retiring stock means these were in the treasury of the company. Which means they were NOT outstanding. All this means is that there will be NO effect on the stocks outstanding. i.e., they are NOT included in the 5,850,000 shares outstanding. Consequently there will (read: should) be NO effect on the stock price. Further, it means the company will NOT have these stocks available for stock option or other company related purposes. It also means these stocks will NOT be available for any stock splits that may happen in the future. - ------------------------------------------------------------------------------- From: Jacqueline.D.Richardson@Hitchcock.ORG (Jacqueline D. Richardson) Subject: Roth IRA Question Date: 01 Feb 1999 15:23:09 EST I've never paid very much attention to the posts about Roth IRAs because I didn't think I would ever want to do an IRA. Therefore, could someone direct me to a web site that gives a good overview of the Roth IRA and how it can be set up. What I would like to do (and probably someone here could tell me if it is possible to do this or a variation of it) is dabble in some individual stocks and I was wondering if I could open an IRA and either put in some existing stocks I own (or start the IRA with cash and buy stocks within the IRA) and buy and sell them within the IRA. My plan would be to leave my initial investment and (hopefully) any profits in the IRA until I retired. If I did well my understanding is that it would save all those capital gains I would otherwise have to pay upon the sale of the stocks if they weren't in a Roth IRA. Is my thinking correct? Is something like this possible and if so who would I see to start a Roth IRA like this? Do brokerage firms that sell stocks do Roth IRAs? (I sure wish I had of read all those IRA posts.....) Also, do I have until April 15, 1999 to put in $4,000 (married) for 1998 and then could I put in an additional amount for 1999? Thanks a lot. j - ------------------------------------------------------------------------------- From: Elaine Steward Subject: Re: (Fwd) Asset Allocation for new automobile Date: 01 Feb 1999 13:38:57 -0700 On 02/01/99 08:48:25 you wrote: > > >--- Forwarded mail from "Ray McKinnon" > >From: "Ray McKinnon" >Date: Mon, 1 Feb 1999 08:37:11 -0500 >should we pay for the automobile out right, or >finance it? I believe in the rule of thumb that inasmuch as it is possible, one should never finance a depreciating item. Elaine Steward email address: esslady@ix.netcom.com - ------------------------------------------------------------------------------- From: "Roberta Kleinman" Subject: Income Tax Consequences of Exercised Options Date: 02 Feb 1999 15:23:01 CST My sister just informed me that this past December she and her husband decided to exercise some company stock options her husband had been given a few years ago by his employer. They had not been able to exercise the options earlier because of minimum time restrictions imposed by the company on how long the options had to be held before they could be exercised. The exercise price of the options ($38) was only about one fourth the market price of the stock on the date of exercise, which market price was then at or near its all time high. They did not immediately turn around and sell the shares they acquired by exercising the options because they thought if they held the shares for at least a year and then sold them they would qualify for long term capital gain treatment on any profits. The market value of the shares has decreased somewhat since the date of exercise. Now my sister is concerned because she has reviewed the relevant 1998 income tax publications and believes that she and her husband will be required to pay about $9000 in 1998 income taxes on the difference between the exercise price of the options and the (sky high) market value of the stock on the date of exercise, despite the fact that the stock has not actually been sold, they have not realized any positive cash flow from the sale, and the stock now has a lower market price than on the date of exercise. Is she correct? If so, are they at least entitled to the lower long term gains rate because they held the options for longer than one year? Is there any way they could have handled this matter differently which would have allowed them to defer realization of "profits" from the option exercise until the acquired stock was sold, thus avoiding a big tax bill this April? At this point, would it be possible to sell an equivalent amount of stock borrowed from their broker in order to raise immediate funds to pay the tax due? And would this course of action have the desired effect of entitling them to the long term capital gains rate for profits resulting from the eventual liquidation of the current shares of stock? Any informed advice would be greatly appreciated. ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com - ------------------------------------------------------------------------------- From: "Bipin" Subject: how to calculate return on 401k Date: 03 Feb 1999 11:09:28 -0800 hello: i just changed jobs and when rolling over my 401k to an IRA, i thought that the total amount was suspiciously low, just a little more than the total contribution. that seems strange because i had been 100% invested in index funds over the last five years. i have created an excel table with the following columns: date(first of every month) my contribution company match total for all five years. i was fully vested in my company match. in addition to the above, i have the final amount. how can i use this to calculate a return? bip - ------------------------------------------------------------------------------- From: Rich Carreiro Subject: Re: Income Tax Consequences of Exercised Options Date: 03 Feb 1999 16:09:27 -0500 >My sister just informed me that this past December she and her husband >decided to exercise some company stock options her husband had been >given a few years ago by his employer. What kind of options are they? The tax treatment is massively different between incentive stock options (ISOs) and non-qualified (or non-statutory) stock options (NQOs). >Now my sister is concerned because she has reviewed the relevant 1998 >income tax publications and believes that she and her husband will be >required to pay about $9000 in 1998 income taxes on the difference >between the exercise price of the options and the (sky high) market >value of the stock on the date of exercise, despite the fact that the >stock has not actually been sold, If they are non-qualified options, she is correct. The spread between the exercise price and the stock price on day of exercise is wage income, subject to income tax, Social Security tax, and Medicare tax. Her basis in the shares for future gain/loss is the stock price on day of exercise. If they are ISOs, no regular tax is due on the spread, though the spread is an Alternative Minimum Tax preference item, and gain will only be realized when the stock is ultimately sold. >on the date of exercise. Is she correct? If they are NQOs, yes, she is correct. >If so, are they at least >entitled to the lower long term gains rate because they held the options >for longer than one year? No. > Is there any way they could have handled this >matter differently which would have allowed them to defer realization of >"profits" from the option exercise until the acquired stock was sold, >thus avoiding a big tax bill this April? If they are NQOs, no. >At this point, would it be >possible to sell an equivalent amount of stock borrowed from their >broker in order to raise immediate funds to pay the tax due? Once they own the stock, they can do what they want with it, subject to any rules (such as trading blackouts) the company imposes on them. >this course of action have the desired effect of entitling them to the >long term capital gains rate for profits resulting from the eventual >liquidation of the current shares of stock? If these are NQOs, holding period begins the day after the option is exercised. However, nothing you do with the stock can change the character (which is ordinary income) or amount of income realized by the option exercise. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 - ------------------------------------------------------------------------------- From: Rich Carreiro Subject: Re: Roth IRA Question Date: 03 Feb 1999 16:02:28 -0500 >I've never paid very much attention to the posts about Roth IRAs because I >didn't think I would ever want to do an IRA. Therefore, could someone direct >me to a web site that gives a good overview of the Roth IRA and how it can be >set up. http://www.fairmark.com http://www.rothira.com >What I would like to do (and probably someone here could tell me if it is >possible to do this or a variation of it) is dabble in some individual stocks Yes, you can do that. >and I was wondering if I could open an IRA and either put in some existing >stocks I own No, you can't do that. >(or start the IRA with cash and buy stocks within the IRA) and buy Yes, you can do that. >and (hopefully) any profits in the IRA until I retired. If I did well my >understanding is that it would save all those capital gains I would otherwise >have to pay upon the sale of the stocks if they weren't in a Roth IRA. Yes, it would. On the other side of the coin, you don't get to deduct your losses. Remember that since the contribution is limited to at most $2000 per year, trading stocks with that little money will mean you'll be eaten alive by commissions. >start a Roth IRA like this? Your favorite broker/bank/fund company. > Do brokerage firms that sell stocks do Roth IRAs? Yes. >Also, do I have until April 15, 1999 to put in $4,000 (married) for 1998 and The limit is $2,000 for each spouse, not $4,000. You have until April 15, 1999 to make a contribution for Tax Year 1998. You have until April 15, 2000 to make a contribution for Tax Year 2000. If your combined adjusted gross income is over $150,000, the maximum $2,000 contribution gets phased out until it hits zero at AGI of $160,000. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 - ------------------------------------------------------------------------------- From: "Marshall Farr" Subject: Info to identify mutual funds based on component stocks Date: 04 Feb 1999 01:12:50 -0500 I would like to consider inversting in mutual funds that contain certain stocks . Is there any way, including some web program, to feed in the names of a group of stocks and expect, as a result, a list of mutual funds that have at least a certain minimal proportion of total holdings of those input stocks? For example, if I wanted to invest in stocks X, Y, Z and A, I might want the program to identify all mutual funds that contain at least 5% of its holdings in each of these stocks. Or, equally acceptable, would be all mutual funds listed in Nasdaq or Dow Jones or the NY Stock exchange that contain at least 7 out of 20 of the stocks in which I am interested. I would like to know about any program -- the numbers just given are merely examples -- whose parameters I could fill in (e.g., the amount of absolute shares in the stocks I like, or the length of time the mutual fund company has held the stocks, etc. If there isn't such a program, wouldn't it be relatively easy for a good programmer, supplied with the data base, to write one? And wouldn't it be commercially profitable? Marshall J Farr, PhD Marshall There are things so serious that you can only joke about them --Niels Bohr - ------------------------------------------------------------------------------- From: snarasim@genre.com Subject: Info to identify mutual funds based on component stocks Date: 04 Feb 1999 08:32:51 -0500 There are a couple of misconceptions in your posting. I will try to clarify them as well as I can. i) Open Ended Mutual Funds (which is what you are hopefully talking about) are not 'listed' on any exchange - at least not to my knowledge (I have worked for a mutual fund). 'Listing' of a security on any exchange means it is available for sale at that Exchange. Mutual Funds can only be bought or sold from the mutual fund companies - or thru advisors/brokers. The number of shares that a Mutual Fund can issue are potentially unlimited. The share price of a mutual is decided directly by the number of shares outstanding divided by a 'reasonable' estimate of the value of the securites being held by it. ii) However, Closed-end Mutual Funds ARE listed on Exchanges - but then they do not behave like Open-End Mutual Funds. The number of shares in a Closed-End Mutual Fund is limited and the share price fluctuates based on supply and demand. iii) Mutual Funds do not HAVE to identify their holdings concurrently with the time that they are holding securities. In fact most funds publish their list of holdings as of the end of the previous month (or previous quarter) - MUCH after the fact. It is quite possible that, say Mutual Fund X has 10% of its holdings in Company A on 12/31/1998 and by the time they publish these holdings, say on 1/15/1999, they have sold most of their holdings in Company A. There is a good reason for this - if Mutual Funds were to actually publish their minute-by-minute holdings, it is VERY easy to trace the trading characteristics of the manager - and do some 'front-running' - i.e., buy some of the Fund's future holdings BEFORE the fund makes its move and, after the fund has stocked up on that security, sell at the appreciated price. Although this 'front-running' is illegal in the eyes of the SEC, what is to prevent an astute observer of a Mutual Fund from making these purchases basedon the activities of the Fund? To make a long story short, such a program is neither available, nor would it be possible for anyone to put it together - unless they had INSIDE knowledge of the workings of the Mutual Fund - which would be illegal. cc: "Marshall J. Farr" - ------------------------------------------------------------------------------- From: Chf542@aol.com Subject: Relocating to FL at 80 Date: 04 Feb 1999 08:50:49 EST Relocating to Florida condo at 80. Which is better, high down payment with 15 yr. mortgage or low down payment with 30 yr.? Should I liquidate investments and pay cash? Are there any estate planning moves that I should consider now? Thanks, J. - ------------------------------------------------------------------------------- From: David Cay Johnston Subject: Stock Question Date: 05 Feb 1999 10:58:20 -0500 At 12:32 PM 2/3/99 -0700, you wrote: >Date: 01 Feb 99 13:57:40 EST >From: Jacqueline.D.Richardson@Hitchcock.ORG (Jacqueline D. Richardson) >Subject: Stock Question > >I have started watching a few stocks and am trying to learn about the stock >market with regard to individual stocks as opposed to mutual funds. snip snip snip >"Asia Properties, Inc announced today that the Company has retired 1.4 million >shares of its founders' stock into API's treasury. A more significant question is: For what reasons are you poking around in obscure stocks as a novice? Youy will do better if you start out with blue chips, stocks of companies with large liquid markets in their shares which over long periods of time have demonstrated an ability to make money through good times and bad. Also, you can learn much about a company by studying its reports to shareholders, which are also filed with the Securities & Exchange Commission and posted on their website at www.sec.gov. Look at the 14a (proxy) and 10k(annual report) and 10q (quarterly report) filings. Print out a few and study them. ================================= David Cay Johnston Reporter The New York Times 212.556.3605 davidcay@nytimes.com When you look into the eyes of others you acknowledge their humanity ================================= - ------------------------------------------------------------------------------- From: "John D. Dennis" Subject: How to keep it simple Date: 05 Feb 1999 15:14:54 +0000 Hmmm....I really dread coping with the volume of year-end statements that I've received over the last few weeks. Anybody else have that feeling? Since I don't have a personal accountant (wish, wish, wish...), I'd like to solicit suggestions from the members of this list on the topic of "How to keep it simple." I'm most concerned with record-keeping, ease of tax filing, and just keeping a good perspective on the investments I have--but others may have another angle or two to add to that. Tho it's too late for this year, this is seems to me like a good time to think on this. To start such a list I'll suggest two things: 1) Use only one brokerage/fund company (I now have three) 2) Invest for the long term. (or some variation on this, i.e:) --Don't trade in and out of things. --Make your choices carefully so you won't be tempted to trade in and out of things. --Buy, and don't ever sell.... Any other ideas? Thanks, J. Dennis - ------------------------------------------------------------------------------- From: SMabel555@aol.com Subject: lesson learned Date: 08 Feb 1999 20:21:23 EST Here's a lesson for everyone: A friend (really, not me!) wanted in on a recent technology IPO. He's got a few grand he trades on Etrade, and had been frustrated watching tech stocks all hit $300. He reads about Pacific Internet. "Looks like a solid company", he thinks, "and the IPO should take off". How right he was. The night before the offering, he put in a bid on Etrade to buy 100 shares. His mistake? He placed a market order. By the time he could check his account- at 10 am, the stock had opened and run to $80 before his order was processed. It hit $85, then immediately plummeted before he sold around $40, for a $4000 loss in a couple of days. Lesson: In fast moving markets, always place a limit order! (Really, this wasn't me! I just got to watch and learn what not to do) - ------------------------------------------------------------------------------- From: Subject: IDT Date: 09 Feb 1999 08:39:39 -0600 I have a question regarding IDT (long distance company). Has anybody dealt with this company before? My parents had signed up with IDT because of their cheap long distance rates overseas (a call to Singapore was 21 or 25 cents a minute). When they got their bill last month, they were charged $76 in LOCAL phone calls. All of their calls to sign on to AOL, their internet provider, which were local calls (within the same area code) were charged. IDT says it is because GTE owns the AOL local numbers and that when they had switched to IDT, they were no longer local calls. Is this legal? I would appreciate any comments or suggestions on this. Carol. - ------------------------------------------------------------------------------- From: Jamester Subject: Driver License question Date: 09 Feb 1999 09:20:58 -0800 (PST) Hi Persfinner, Sorry if this isn't the appropriate place for this type of question but I don't know of any other place to ask this. I have a friend who moved out of the country a little before his Calif driver license expired. DMV sent his parents a renewal notice but of course they didn't take any actions. Two and a half years later my friend is coming home and wonder if he can still walk into the DMV with his old renewal notice and his (expired) driver license, pay the $12 fee (times 2.5 yrs) and get a new license, without having to start the application process all over again (because that would give him a new license number) Has anyone ever experienced this sort of thing? Thanks in advance! James - ------------------------------------------------------------------------------- From: SMabel555@aol.com Subject: news research Date: 12 Feb 1999 18:51:19 EST Does anyone have a good source for historical financial news on the internet? I use AOL and Yahoo to watch some stocks, and both feature current news items. What I would like to do is research news from, for example, the week a stock shot up or dropped down last year (or 6 months ago, etc). Where can I look up historical AP/Reuters/Press releases? Obviously, I prefer a free site. Thanks, SM - ------------------------------------------------------------------------------- From: Martin S Turnauer Subject: Chase Manhattan Bank Date: 15 Feb 1999 07:43:25 -0500 (EST) For 24 years and 10 months we have had our checking account on automatic deduction for our house payment. We have a 25 year mortgage. Over the years the house loan was sold to Chase Manhattan bank. With 2 payments left Chase Manhattan Bank stopped requesting of my bank the monthly payment. In January I received a default of loan payment on my house from Chase Manhattan. I called them and they told me, they do not use the automatic payment during the last 2 months. I called my bank and sent a cashiers check to Chase Manhattan to pay off the last 2 house payments. (They wouldn't accept a personal check after 24 years & 10 months) I am still receiving default of loan letters since they have no record of receiving the cashiers check. My bank has the cashiers check returned and endorsed by Chase Manhattan Bank. My bank has sent Chase Manhattan a copy of the returned, cashed cashiers check and they still will not credit my home loan as being paid off. Any ideas of what I should do with these idiots at Chase Manhattan? - ------------------------------------------------------------------------------- From: JEFFREY ALLEN DEVANZO Subject: Can I deduct these points ? Date: 15 Feb 1999 10:59:29 -0500 (EST) Hello to All , We are in the process of selling our house and purchasing a new one. The question that i have is , If we pay the points for the person who buys our old house can we deduct the points that we have paid , or is this considered a "gift". The reason i ask is there are some programs out in the real estate world that will allow a seller to pay some, most, or all of the closing costs, in order to get your house to sell . Any help on this one will be greatly appreciated for obvious tax rerasons. Jeff DeVanzo - ------------------------------------------------------------------------------- From: "Harold R. Justice" Subject: Education IRA Date: 14 Feb 1999 22:37:56 -0600 Some of you have been discussing education IRAs and some of its limitations. Have you considered funding a Roth IRA for educational purposes? The way this works is you can remove your contributions without paying any tax or penalties since that money has already been taxed. Suppose you and your spouse both funded a Roth each year from the time your child is born. At age 18 your child would have $72,000 to draw from for education. The earnings would remain in the IRA and can still be used in your retirement, with no taxes due. Harold R. Justice - ------------------------------------------------------------------------------- From: nowak@comm.mot.com (Mark Nowak) Subject: Need info on Medicare and Medigap Date: 18 Feb 1999 09:53:50 -0600 Hi, My mother is turning 65 in a few months, and we both are pretty clueless about how Medicare and Medigap coverage works and how we apply for it. Does everyone get covered for Medicare Part A? What is covered in Medicare Part A? How does one set up automatic withdrawal from Social Security for Medicare Part B? Getting Medicare Part B is recommended, right? What is covered in Medicare Part B? Medigap insurance supplements Parts A and B, right? How does one pick the right supplement especially if one has a pre-existing condition? Can anyone direct me to good sources of information on this? Any help would be very much appreciated. Thanks! Mark Nowak -- Mark Nowak Chicago, Illinois Motorola: nowak@comm.mot.com IIT: mnowak@ece.iit.edu http://www.ece.iit.edu/~mnowak/index.html Hotmail: marknowak@hotmail.com, http://www.geocities.com/Paris/1092/ - ------------------------------------------------------------------------------- From: "Gary M. Oppenheimer" Subject: Chase Manhattan Bank Date: 18 Feb 1999 12:05:11 -0500 (EST) Have your atty sent a certified cease and desist letter to the bank, cc: the state banking commission, and threaten to sue for harrassment if the letters continue. - ------------------------------------------------------------------------------- From: Jo Anne Freeman Subject: Re: persfin-digest V5 #89 Date: 18 Feb 1999 08:19:25 -0700 persfin-digest wrote: > > persfin-digest Thursday, February 18 1999 Volume 05 : Number 089 > > In this issue of the Personal Finance Digest: > > Chase Manhattan Bank > Can I deduct these points ? > Education IRA > Need info on Medicare and Medigap > > The messages posted to the Persfin-Digest are opinions and are not > intended to substitute for qualified professional advice. Subscribers > should seek the services of qualified professionals for such advice. The > publisher, Internet provider, and Digest contributors cannot be held > responsible for any loss incurred as a result of the application of any > of the information provided here. > > To ask questions or provide answers, send your email to > "persfin-digest@lists.xmission.com". Also, you can "reply" to the > persfin-digest and your email tool should fill in the same address. > However, if you "reply", be sure to edit the subject field in your email > to reflect your topic. > > Copyright (c) 1998, Jeff Salisbury > > POSTED SUBSCRIPTION FEE: $20/year. Payment is optional. You will not > be billed. The Digest is available to all subscribers, whether or not > they pay. I do not discriminate either in favor of paying subscribers > or against nonpaying subscribers. If you feel that the information > presented here is worth the fee, and you feel comfortable paying it, > send cash, check, or money order (U.S. funds), payable to "Jeff Salisbury", > to: > > Jeff Salisbury > 65 North 1300 East > Logan, Utah 84321 > > Payment will be acknowledged by e-mail if you include an e-mail address. > Subscribe: e-mail majordomo@xmission.com, text: subscribe persfin-digest > Unsubscribe: e-mail majordomo@xmission.net, text: unsubscribe persfin-digest > > ---------------------------------------------------------------------- > > Date: Mon, 15 Feb 1999 07:43:25 -0500 (EST) > From: Martin S Turnauer > Subject: Chase Manhattan Bank > > For 24 years and 10 months we have had our checking account on > automatic deduction for our house payment. We have a 25 year mortgage. > > Over the years the house loan was sold to Chase Manhattan bank. > > With 2 payments left Chase Manhattan Bank stopped requesting of my bank > the monthly payment. In January I received a default of loan payment on > my house from Chase Manhattan. > > I called them and they told me, they do not use the automatic payment > during the last 2 months. > > I called my bank and sent a cashiers check to Chase Manhattan to pay > off the last 2 house payments. (They wouldn't accept a personal check > after 24 years & 10 months) > > I am still receiving default of loan letters since they have no record > of receiving the cashiers check. > > My bank has the cashiers check returned and endorsed by Chase Manhattan > Bank. > > My bank has sent Chase Manhattan a copy of the returned, cashed cashiers > check and they still will not credit my home loan as being paid off. > > Any ideas of what I should do with these idiots at Chase Manhattan? I would send a registered letter with receipt requested to the CEO and President of Chase Manhattan bank with a clearly indicated copy to the New York Times and Wall Street Journal. HJF - ------------------------------------------------------------------------------- From: Bill Wang Subject: VALIC 403(b) Date: 18 Feb 1999 13:13:27 -0500 (EST) A friend of mine's non-profit org has only one 403(b) plan using VALIC annuities which has 1.5% additional expense over the inside funds' (such as Vanguard, T. Rowe Price, etc...) expenses. Does anyone have any opinions about whether the plan is still worth while to do? There is no matching. A related web site at: http://users.aol.com/GMacLaren/403b.html is very negative about the 403(b) program using only insurance companies. Bill -- Bill Wang US Mail = Cognitive Science, 1101 E. 10th St., Indiana University, Bloomington, IN 47405-7007 Internet = wcwang@cs.indiana.edu HTTP = http://www.psych.indiana.edu/hyplan/wcwang.html - ------------------------------------------------------------------------------- From: "Christopher M. Kulp" Subject: 401K Early Educational Withdraws Date: 19 Feb 1999 08:42:46 -0500 I plan to go back to school for a year (grad school), and am wondering if anyone can tell me the procedures necessary to withdraw some money from my 401K. The withdraws are not 'supposed' to be penalized, according to IRS publication 590 on IRA's. Will my employer automatically withdraw the taxes and penalties (and I will get a refund of the penalties), or am i responsible for paying them. I would welcome any suggestions that anyone might have. THanks, Chris - ------------------------------------------------------------------------------- From: Andstat@aol.com Subject: Deducting closing costs on my taxes Date: 20 Feb 1999 09:24:47 EST Please help me, I purchased a house in June 1998, is it possible to deduct closing costs on my tax return, do you know what line on the schedule A form, I will have to deduct the closing costs if it is possible Thanks - ------------------------------------------------------------------------------- From: juanb@VNET.IBM.COM Subject: Should Box 1 and Box 5 on W-2's match? Date: 22 Feb 1999 08:55:11 EST I just started doing my taxes (using TaxCut) and when I began to enter my W-2 info, it alerted me to the fact that my Box 1 entry (gross wages) did not match my Box 5 entry (medicare wages). I participate in a 401K at work and usually this explained the difference. But TaxCut displayed a message stating that the laws were changed and that Medicare now taxes your gross wages? Can anyone tell me if my W-2's are incorrect? Or is TaxCut wrong? Thanks, Juan - ------------------------------------------------------------------------------- From: Rich Carreiro Subject: Re: Should Box 1 and Box 5 on W-2's match? Date: 22 Feb 1999 18:58:44 -0500 >I just started doing my taxes (using TaxCut) and when I began to enter >my W-2 info, it alerted me to the fact that my Box 1 entry (gross wages) >did not match my Box 5 entry (medicare wages). I participate in a >401K at work and usually this explained the difference. But TaxCut >displayed a message stating that the laws were changed and that Medicare >now taxes your gross wages? > >Can anyone tell me if my W-2's are incorrect? Or is TaxCut wrong? Your W-2 forms are correct. TaxCut is also correct, though its explanation sounds weird. Medicare tax has always been on your gross (i.e. pre-401(k) contribution) wages. That's not new at all. I'm also surprised it didn't gripe about Box 1 not matching SS wages (the difference is because of the same reason). Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 - ------------------------------------------------------------------------------- From: Rich Carreiro Subject: Re: Deducting closing costs on my taxes Date: 22 Feb 1999 18:56:47 -0500 >Please help me, I purchased a house in June 1998, is it possible to deduct >closing costs on my tax return, do you know what line on the schedule A form, >I will have to deduct the closing costs if it is possible Closing costs are NOT deductible in general. The only closing costs are deductible are taxes paid at closing (NOT monies paid to prime your escrow account, but money you pay to the seller to reimburse them for property tax they paid for the part of the year you'll be in the house) and interest paid at closing (i.e. mortgage points [though I don't believe points designated as "origination fees" are deductible] and any interest you paid at closing because you didn't close on the last day of the month). That's basically it. The other costs become part of the basis of your house. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 - ------------------------------------------------------------------------------- From: "Simon Mattox" Subject: Roth IRA for niece with no taxable income Date: 22 Feb 1999 18:40:29 PST Ok, here is a question for all you financial planners. I want to open a Roth IRA for my niece but she is only 11 years old and has not taxable income. What are the laws about paying her for chores or remedial jobs and counting that as taxable income. Anybody have any good ideas on this. Thanks for you help ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com - ------------------------------------------------------------------------------- From: "Joel Elias" Subject: Depreciation Adjustment Date: 24 Feb 1999 20:19:14 -0000 I am trying to prepare my wife's Sub. S corporation return myself, but am stumped on one point. Last year, she had $4,900 depreciation for a car purchased in 12/96 for $25,570 along with $1455 section 179 depreciation. Her accountant listed -581 on Schedule K-1 line 14a "Depreciation adjustment for property placed in service after 1986". the accountant is no longer in town and I can't figure out how this number is calculated. I tried various alternate depreciation tables (150DB, etc) and can't come up with the accountant's number. I assume I have to do a similar calculation for her 1998 taxes. The car depreciation for '98 is $2950 and she has $2802 in Section 179 depreciation. Can you help me figure our how to calculate K-1 L14a. Thanks in advance for your help. -----== Sent via Deja News, The Discussion Network ==----- http://www.dejanews.com/ Easy access to 50,000+ discussion forums - ------------------------------------------------------------------------------- From: Storage Products Division -- DTN 522-2718 24-Feb-1999 2155 -0600 Subject: Need long distance provider w/ no monthly minimum Date: 24 Feb 1999 21:58:08 MST I need a long distance phone service provider that does not have a monthly minimum charge. Any recommendations? Thanks, Randy Marks - ------------------------------------------------------------------------------- From: "Steve R. Rasmussen" Subject: long distance provider w/ no monthly minimum Date: 27 Feb 1999 21:37:32 -0800 >I need a long distance phone service provider that >does not have a monthly minimum charge. Any recommendations? "Lucky Dog" -- ATT's long distance "dial-around" service may offer the type of long distance service you are seeking. The interstate price is 10 cents per minute plus 10 cents per call with no monthly minimum. Intrastate rate varies from state to state and can be found at the URL, http://www.luckydog.com/rates.html. Rates for service to foreign countries can be found at the same URL. There are other competing "dial-around" services. You might try an internet search using the search words "dial-around." - ------------------------------------------------------------------------------- From: "L. Chen" Subject: What is the difference between Spdr and S&P500 mutual funds? Date: 25 Feb 1999 02:17:39 -0500 (EST) By SPDR, I mean the S&P500 index listed on American Stock Exchange. TIA Chen - ------------------------------------------------------------------------------- From: Rich Carreiro Subject: Re: Roth IRA for niece with no taxable income Date: 25 Feb 1999 09:53:00 -0500 Check out http://www.fairmark.com and follow the Roth IRA link. Under the Roth stuff is a good discussion of minors, household chores, and Roth IRAs. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 -