Investment and Finance

If your only capital gains are your Form 1099-DIV box 2a, capital gain distributions, then Schedule D is not required to be filed. You will enter the 1099-DIV box 2a amount on IRS Form 1040 line 13.

In order to avoid any future problems and to avoid any mismatching reports with the IRS, you should include this amount on IRS Schedule B, both as a positive and negative amount. Enter the Form 1099-DIV amount on Schedule B, line 5 as income. Enter the same amount as a negative adjustment on Schedule B, line 5 and enter "Nominee Distribution" as the negative adjustment description. Speak to your local CPA if you have any questions about the reporting of this incorrect dividend income.

Proceeds from stock transactions are reported to individuals on Form 1099-B.
The individual transactions are entered on IRS Forms 8949 and Schedule D.
The sales should be listed, including the trade date, not the settlement date.

SEP is an abbreviation for a simplified employee pension plan.
Simplified Employee Pension plans (SEPs) can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees.
Under a SEP, an employer contributes directly to traditional individual retirement accounts (SEP-IRAs) for all employees (including the employer).
A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay. Sole proprietors, partnerships, and corporations, including S corporations, can set up SEPs. Your employer's SEP contributions are excluded from your pay and not included on your W-2 form.

As the surviving spouse who receives a lump-sum IRA distribution upon your spouse's death, you may avoid the tax on this distribution if you made a tax-free rollover into your own IRA account.
Beneficiaries other than the surviving spouse may not use the tax-free rollover option.

You do not have to file IRS Form 5329 if you did a direct rollover.

The codes identify the type of distribution, and whether a Form 5329 penalty is required.
Code 1 identifies the distribution as an early distribution with no known exceptions subject to the 10% IRS Form 5329 penalty.
Code 2 = early distribution but a exception applies and no penalty lis levied.
Code 3 = Disability and no penalty required.
Code 4 = Death and no penalty required.
Code 5 = Prohibited transaction.
Code 6 = Section 1035 tax free exchange.
Code 7 = Normal distribution and no penalty required.
Code 8 = Excess contribution.
Code 9 = Cost of current life insurance protection..
Code A = May be eligible for 5 or 10 year averaging.
Code B =designated Roth account distribution.
E—Distributions under Employee Plans Compliance Resolution System (EPCRS).
F—Charitable gift annuity
G—Direct rollover and rollover contribution.
H—Direct rollover of a designated Roth account distribution to a Roth IRA.
J—Early distribution from a Roth IRA.
L—Loans treated as deemed distributions under section 72(p).
N—Re-characterized IRA contribution made for 2012.
P—Excess contributions plus earnings/excess deferrals taxable in 2012.
Q—Qualified distribution from a Roth IRA.
R—Re-characterized IRA contribution made for 2012.
S—Early distribution from a SIMPLE IRA in the first 2 years, no known exception.
T—Roth IRA distribution, exception applies.
U—Dividends distributed from an ESOP under section 404(k).
W—Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.

The trustee custodial fees paid to set up and manage your IRA are investment expenses listed as an miscellaneous itemized deduction, subject to the 2% AGI limitation on IRS Schedule A.

You can contribute up to $5,500 ($6,500 if you are 50 or older) provided you have at least $5,500 / 6,5000 of wages, salary or net self-employment earnings in 2013 and in the case of a traditional IRA (deductible IRA) , you have not reached age 70 1/2 by the end of the year.