Retirement Planning/Mutual Funds & Taxation

Advertisement


Question
I owe the state of Illinois a considerable amount for year 2013.  I just need a brief explanation to understand the reason why?

Most of my taxable income appears to have resulted from long term capital gains on NON-IRA  Mutual Fund investments.  Were those "taxable" long term capital gains a direct result of my switching investment brokers in mid 2013, which necessitated selling the proprietary NON-IRA Mutual Fund investments in order to make them transferable to the new broker OR did all these taxable long term gains result for a different reason?

Thank you,
Ken

Answer
Hi Ken,
There are a couple of ways you can be taxed on capital gains in a non IRA account. One is to sell them at a gain and the other is for stock trades made within the funds. You should not have had to sell these funds in order to move it to a different broker. If this is the case and you are still in the same funds than it sounds like your new broker is generating a commission for himself. To stay in the same funds and switch brokers, a "Change of Broker" form is all that's needed. Please let me know if this is the case, I would hate to imply that a broker did something unethical without all the facts.

Dave

Retirement Planning

All Answers


Answers by Expert:


Ask Experts

Volunteer


David M Iannopollo

Expertise

I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances. I can also show you how to take advantage of the stock market gains without the risk of loss!

Experience

I have over 25 years experience in the business and financial world.

Education/Credentials
Life experience has been my greatest education!

©2016 About.com. All rights reserved.