From a cold and AGAIN icy Dallas Texas as all schools are closed for a fifth time in less than two weeks:
During the late 90’s and earlier this decade there were various fund companies that were charged by investment authorities with wrongdoings such as after market close transactions, and other items that were costly to investors.
Checks for settlement and investor reciprocation are mailed out occasionally as fund companies settle their cases. These checks may seem like a late Christmas present, yet they come with some investor obligations.
Here are a few important items to remember:
- Make sure you open ALL of your mail, a check may be waiting for you from investment companies you have not associated with for over a decade, and the name of the company may not be familiar to you as many investment companies have merged, and as such, changed names
- Do not immediately deposit the check!
- Confirm your check is NOT from an IRA account, if NOT then you may be able to deposit the check (It is best to touch base with us first)
- If your check is from and IRA, it must be deposited into an IRA account again or these funds will be deemed a distribution in the current tax year and you may be accessed a small penalty
- Keep a copy of the check, all related documents, and store this information in your correct tax year files i.e. Checks recently received will need to go into your 2011 tax record keeping folder and will need reviewing prior to April 2012, the preparation time for your 2011 Federal Tax return
Unfortunately, there is often time little notice prior to these checks being mailed out, which necessitates we as investors, be on the look out for a possible something extra in our mailbox!
Have a Great Day!
JK