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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8587  
Subject: Companies accelerating Dividends... Date: 12/5/2012 8:53 PM
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Due to the usual incompetence of the United State Congress as well as the White House many, many companies are accelerating dividend payment dates into December 2012 for dividends that would usually be paid to shareholders in January or even February. This is, of course, good.

For my portfolios, it basically makes no difference because all of my dividend paying companies are held in-side tax deferred or tax-exempt accounts.

Kahuna, CFA
Investment Professional
1974 - Present
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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7715 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/6/2012 8:53 PM
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For my portfolios, it basically makes no difference because all of my dividend paying companies are held in-side tax deferred or tax-exempt accounts

So when you take them out, they are taxed as regular income. Why not move dividends outside where you only (used to) pay 15%?

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Author: TerryMcK Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7716 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/6/2012 9:06 PM
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So when you take them out, they are taxed as regular income

Not Roth IRAs

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Author: Ga1Dawg Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7717 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/6/2012 10:48 PM
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Not Roth IRAs
**************
Roth IRAs are not tax deferred accounts

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Author: desertdaveataol Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7718 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/7/2012 12:27 AM
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Not Roth IRAs
**************
Roth IRAs are not tax deferred accounts


Er... no, iirc you pay the tax on Roths before putting the (then taxed) money into the IRA.

THUS NO TAX LATER.

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Author: gdett2 Big red star, 1000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7719 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/7/2012 2:00 AM
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PuddinHead42,

I have them in taxable, trad and Roth accounts. Unfortunately, most are in trad IRAs simply because that is where most of our money is. Not much I can do about that part now.

It would have been nice if our lawmakers had thought up the Roth IRA in the 1970's instead of the trad IRA but it just took them a little too long.

Gene

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Author: Ga1Dawg Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7720 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/7/2012 8:33 AM
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DD, if I am not mistaken we are discussing tax treatment of dividends. In a Roth dividends are not taxed,
but in a reg IRA ones dividends are taxed as income (not dividends) when a withdrawal is made

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Author: desertdaveataol Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7722 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/7/2012 6:53 PM
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DD, if I am not mistaken we are discussing tax treatment of dividends. In a Roth dividends are not taxed, but in a reg IRA ones dividends are taxed as income (not dividends) when a withdrawal is made

Are you saying dividends earned in a ROTH are not taxed when the money is withdrawn?

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Author: FlyingDiver Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7723 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/7/2012 7:20 PM
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Are you saying dividends earned in a ROTH are not taxed when the money is withdrawn?

Isn't that the whole point of a ROTH? You pay tax on the money before you put it in, and you don't pay tax on anything you take out. The inverse of a Traditional IRA - there you don't pay tax on what you put in, but you pay tax on everything you take out.

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Author: desertdaveataol Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7724 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/7/2012 7:49 PM
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Isn't that the whole point of a ROTH? You pay tax on the money before you put it in, and you don't pay tax on anything you take out.

That's what I thought I said, but I seemed to be getting some disagreement.

Me:
iirc you pay the tax on Roths before putting the (then taxed) money into the IRA.
http://boards.fool.com/not-roth-iras-roth-iras-are-not-30418...

Perhaps I should have said: iirc you pay the tax on Roths before putting the (then taxed) money into the ROTH IRA?

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Author: Ga1Dawg Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7725 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/8/2012 9:48 AM
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Are you saying dividends earned in a ROTH are not taxed when the money is withdrawn?
**************************
YES :-)

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Author: Ga1Dawg Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7726 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/8/2012 9:51 AM
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But you pay tax on dividends and everything else you take out of a reg. IRA.

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Author: TerryMcK Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7727 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/9/2012 9:24 PM
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The initial post was relating to dividends. So, regardless of when or how much you put into a Roth IRA and what tax you paid it has no bearing on the dividends earned later - they are not taxed in the Roth or when you take the money out.

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Author: gdett2 Big red star, 1000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7728 of 8587
Subject: Re: Companies accelerating Dividends... Date: 12/10/2012 12:08 AM
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Just as a point of reference, my dividend income for Dec will be nearly doubled for the month by the special dividends and early payments.

CGNX is paying $.11 Q3 (normal Dec), $.11 Q4 (early) and a $1.00 special. COH moved their announced div from Jan 2 to Dec 27, HAS would have been in Feb and a few others that have decided to pay early.

I have only 4 declared Jan payments now with a fifth that has not declared yet. Last year, I had 10 companies pay in Jan.

I wonder how much of this is driven by management with large holdings, since a lot of those are held in taxable accounts?

As long as I get it paid and it doesn't cause harm to the business, it is fine with me.

Gene

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