Investment and Finance

Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation.
These distributions are, at least in part, one form of a return of capital.
They may be paid in one or more installments.
You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9
When a liquidating dividend occurs, it is considered to be a return of capital and not profit.
If the distribution is more than your basis, you would have to report the difference as a capital gain. If the distribution is less than your basis, you may be able to claim a capital loss.

Minimum distributions must be made by April 1 the year after the year you turn 70 and a half.
After the first distribution, minimum distributions must be made by December 31 each year.
Step 1 is to Access the proper life expectancy table. Life expectancy tables are in Appendix C of IRS PUBLICATION 590. Table 1 is for use by one beneficiary. Table 2 is for IRA owners whose spouse is more than 10 years younger than the owner and the spouse is the sole beneficiary. Table 3 is for anyone else.
Step 2 is to Find the appropriate life expectancy amount to determine distribution period.
Step 3 is to Divide the IRA account balance from December 31 of the prior year by the distribution period to calculate the minimum distribution for the period.

Treasury bond and U.S. Savings bond interest is tax-free only on your state returns but not your federal tax returns.

No. You cannot make a contribution to a "traditional" IRA in the year you reach 70 1/2. However- you can make a contribution to a Roth IRA. Of course you must have earned income and the same rules that limit Roth IRAs and traditional IRAs apply. For additional details contact a local CPA.

No. The last E Bonds were issued in 1980 and U.S. Savings bonds have a maturity of 30 years.

Interest that is earned on these savings bonds is taxed to the child, even if the parent paid for the bonds.
The interest earned will be taxable to the child when the bond is redeemed unless an election was made to report the income annually. When the bond is redeemed, the child will receive a 1099-INT form at the end of the year.
This will tell you the amount of interest to report on your child's tax return. If the interest was reported annually over the years, then you will need to separately identify and subtract the previously reported income on Schedule B of the tax return.
Please speak with a local CPA about how to report this and other savings bonds you may not have cashed in yet.

Series "I" bonds are r inflation- indexed bonds that are issued at face value. Interest earned is deferred (not recognized as income) until they are redeemed or mature in 30 years.

Yes. Taxable alimony payments qualify as compensation for purposes of making an IRA contribution. You are subject to the same IRA contribution limitations as one who is working.

A Treasury bill is a negotiable debt obligation issued by the U.S. government, also called a T-bill. Treasury bills mature in one year or less, are exempt from state and local taxes, and range in value from $10,000 to $1 million; they sell at a discount based on current interest rates.