I'm very new to investing. I already have a 401k with my employer. Can I also set up a roth IRA for my long-term investments, and keep another account for dividends?
Yes you can.
how much will i be taxed for any dividends cashed or automatically reinvested? Ordinary dividends will be taxed at the same rate as your wages or most other income
. Capital gain
dividends (available in mutual funds) are taxed at lower capital gains rates
Should I set up a separate tax savings account to pay additional taxes for my dividends. Not necessary. Pay the taxes through your withholdings
Currently my husband and I file jointly and I believe we are in the 25% tax bracket. Do you have any suggestions within the law to save on taxes? If you are in the market, consider buying a home. The interest
taxes allow for some tax benefits
once you can itemize.
I also like setting up a small business you can operate from home. You can convert some of your living costs to tax deductions
, and use tax
losses to offset other income.
I would also like to start buying stocks for my 2 year old. Will I be taxed for that? There isn't much of a tax on the little one's investment income
until it exceeds $1,900. Once you get to that level, it is taxed like it was your income, and taxed at your rates.
Hope this covers your questions. Thanks from Just Answer.