What Your Broker Isn't Telling You About Dividends The last tax act that passed congress made many dividends taxable at only a 15% rate (sometimes less), this is significant because they are usually taxed as ordinary income (when held outside retirement plans - dividends inside retirement plans are tax-deferred and tax as ordinary income when distributed). This is a significant development in the world of stocks and has some people changing their portfolios. What most people don't know is that their dividends may actually be taxable as ordinary income, not at the 15% rate - the reason? Their brokerage firm.
Tuesday January 13, 2004
Tuesday January 13, 2004
Tuesday January 13, 2004
What Your Broker Isn't Telling You About Dividends The last tax act that passed congress made many dividends taxable at only a 15% rate (sometimes less), this is significant because they are usually taxed as ordinary income (when held outside retirement plans - dividends inside retirement plans are tax-deferred and tax as ordinary income when distributed). This is a significant development in the world of stocks and has some people changing their portfolios. What most people don't know is that their dividends may actually be taxable as ordinary income, not at the 15% rate - the reason? Their brokerage firm.