1042 rollover transactions: don't forget to dot your I's and cross your t's

Article Abstract:

Section 1042 of the Internal Revenue Code contains provisions which allow taxpayers to defer capital gains revenue from the sale of employee stock ownership plans (ESOP) if the exchange satisfies particular requirements. Under the law, stocks sold to the ESOP must be considered as 'qualified securities,' must satisfy the 30$ requirement of the value of the firm's outstanding stock, and should have the consent of the employer backing the sale of the ESOP. While penalties are imposed for failure to comply with 1042 requirements, minor errors can be forgiven by the IRS.

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IRA distribution rules

Article Abstract:

Individuals are given tax advantages when contributing to an individual retirement account (IRA). An IRA is a personal savings plan set aside for retirement which may be partially or fully deductible. An IRA must fulfill some complicated rules to earn the tax-favored status such as that IRA assets be in trust or custodial account established by a bank or organization and the limits on investment of IRA funds.

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How to use retirement plan funds for self-directed investing

Article Abstract:

Self-directed retirement plans offer several benefits to employees. Such plans enable the account holder to determine the level of risk, choose investments to be included in the account and instruct the account administrator when to buy or sell assets. The same basics covering other investing also apply to self-directed retirement plan investing.

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