Investment and Finance

IRA Annual Report Form 5498 must be sent to you from the bank by January 31st. It must include the market value of the account as of December 31st. A statement showing contributions for the year must be sent by May 31st.

Prohibited transactions generally include the following transactions: a transfer of plan income or assets to, or use of them by or for the benefit of, a disqualified person; any act of a fiduciary by which plan income or assets are used for his or her own interest; the receipt of consideration by a fiduciary for his or her own account from any party dealing with the plan in a transaction that involves plan income or assets; the sale, exchange, or lease of property between a plan and a disqualified person; lending money or extending credit between a plan and a disqualified person; and furnishing goods, services, or facilities between a plan and a disqualified person.

The account balance of all your husband’s IRA's at the time of death is included in the gross estate.

One strategy is where the grandparents can help the grandchildren's education by making a gift under the Uniform Gifts to Minors Act. Each grandparent can give up to $13,000 per child annually free of gift tax, which should be placed in a UGMA bank account in the grandchild's name, with the grandparent or parent as custodian. Another strategy is for the grandparents to purchase Series EE or Series I bonds, or give the money to the grandchild's parent (who must be at least age 24) to buy the bonds. If the bonds are later cashed and the money used to pay qualified college education costs for the grandchild, the interest will not be taxed. The exclusion is phased out for high income taxpayers. Maximum annual purchases of Series I or Series EE are $30,000. Series I bonds also include the feature of being indexed to inflation. Speak to your local CPA about these tax saving strategies.

An income forecast is an operating statement usually covering one year showing what the business expects to earn. It should include your operating costs, including financing costs and the income from sales. The bottom line result is the business net profit for the period.

For all Treasury securities such as bills, bonds or notes, the minimum purchase amount is $1,000. Bids must be made in multiples of $1,000.
Non-competitive bids from a single bidder may not exceed one million for the same offering of Treasury bills, or five million for the same offering of Treasury notes or bonds.

Strips are sold in the marketplace as "Treasury zeros" or treasury zero coupons. They are called zeros because purchasers do not receive interest payments. The Treasury does not issue or sell Strips. They can be purchased through broker/dealers and depository institutions. They are the people to contact for rates. Bid and ask quotes and ask yields for US Treasury Strips are in the Wall Street Journal under the table "Treasury Bonds, Notes and Bills." These tables are in other financial reporting newspapers as well.

The annual $5,500 ($6,500 if age 50 or older) per spouse annual contribution is deductible on your tax return. Distributions at age 70 and a half are required. Contributions past age 70 and a half are not allowed. Premature distributions are subject to penalty. Distributions are taxable in your current tax return. IRA minimum distribution rules do apply.

The Turnover of Cash Liquidity ratio evaluates the adequate means that a company has to finance sales without struggling to pay for materials or goods that the company is buying. Net sales, divided by working capital = TOC Ratio. (Working capital = current assets, minus current liabilities). The generally accepted standard is 5 or 6 times working capital, but may differ depending on your industry.