401K Financial Planning

Astro newbie asked:

I heard that you have to report income from mutual fund distribution and there’s general advise not to buy funds near year end because of you will have to pay tax for entire year distribution.

If a mutual fund has income distribution (say around $5/month) every month, and I buy it after Jan 1, 2007, do I need to report it in my 2006 tax?

If I buy it on Nov 15, 2006, do I report $5 income (for Dec 1 distribution) or $60 (total distribution by the fund for entire year) ?


Question posted courtesy of: Javier

Ozymandias asked:

A company called SPAB recently underwent a reverse stock split?

I understand a normal stock split, where in order to lower the price of the shares you get 2 shares for your 1…

BUT, why on earth would anyone give 10 shares back to the company for 1 share, if the stock price remains the same?

Wouldnt you just be throwing away money?

I was thinking about picking up a bit of this stock for a LONG HAUL investment (10 years or so), but eh… this reverse stock split thing confuses me.


Question posted courtesy of: Lloyd

indiaabroad asked:

I am 81 indian woman husband expired and I am applying for 5 mutual fund of same type and putting each of 5 child’s name as the beneficiary in each mutual fund. When I am no more , each one will get an Mutual fund of equal worth , & at the same time I will not be short of cash if required. But Same procedure 5 times at this age is cumbersome, is there any simple way?


Question posted courtesy of: Warren