The IRS sets guidelines
for the various retirement plans on how much a person can contribute from their earned income per tax year as well as guidelines and time frames for rollovers and Roth conversions
. Deposits to your account should be correctly identified to ensure IRS guidelines are met.
In the list of examples below, each one of these sources has its own significance and potential tax implications.
Transfers from other custodians
Proceeds from the sale of an asset
Income or profits from an asset
Funds associated with assets also require proper identification. It’s important to know if regular payments, such as monthly rental income or note payments, are paid as agreed. It’s also beneficial to maintaining an accurate account balance to identify if funds deposited to an account are due to an asset being sold, satisfied, or settled.
Whether you have one account with one asset or multiple accounts with many assets, include deposit information with incoming funds. Equity Trust offers deposit coupons on our website and through our online account management portal to meet these needs. You can complete the deposit coupon and submit when mailing funds or by faxing a coupon in advance of a wire transfer to ensure the funds are allocated to your account.