I understand the benefits of a Roth IRA, but do you have to pay taxes on ordinary dividends when the fund is held in a Roth since they are viewed differently by the IRS?
The holding period requirement to make a qualified dividend is unnecessary: the Form 1099 given to you by your brokerage at will classify all your dividends as Qualfied at the end of the year, whether you held for 61+days or not
Ridiculously overly complex Tax Code.
So so so so stupid.
Amen!
I understand the benefits of a Roth IRA, but do you have to pay taxes on ordinary dividends when the fund is held in a Roth since they are viewed differently by the IRS?
No. If you take a qualified Roth distribution, all the earnings, whether they be interest, dividends, or capital gains, are tax free.
So if you have million dollars portfolio in dividend stocks & you are in lowest tax bracket you don't need to pay tax on qualified dividends?
Theoretically, yes.
Good overview
Thanks!
Can a special divided Be qualified?
Yes, it can be.It depends on how long you've held the stock.
@@TheTaxGeek Awesome! I’m going to buy Costco and hold it for 60 days so I the special $15.00 dividend becomes QUALIFIED ! 🚀🚀🚀
Kool, this was helpful. 🙏
Thank you--glad to hear that!
Nice Job
The holding period requirement to make a qualified dividend is unnecessary: the Form 1099 given to you by your brokerage at will classify all your dividends as Qualfied at the end of the year, whether you held for 61+days or not
No, they won't. I've seen hundreds of brokerage statements and 1099-DIVs where the ordinary dividends and the qualified dividends do not match.
What happened if thethe qualified and ordinary dividends do not match
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