What is TD F?
Target date funds (TDFs) mix several different types of stocks, bonds and other investments to help you take more risks when you’re young, and gradually get more conservative in your investment strategy over time.
Do I have to report foreign bank account to IRS?
Any U.S. citizen with foreign bank accounts totaling more than $10,000 must declare them to the IRS and the U.S. Treasury, both on income tax returns and on FinCEN Form 114.
How does a mutual fund differ from an index fund?
There are a few differences between index funds and mutual funds, but here’s the biggest distinction: Index funds invest in a specific list of securities (such as stocks of S&P 500-listed companies only), while active mutual funds invest in a changing list of securities, chosen by an investment manager.
What is a form 8938?
Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.
How does IRS find out about foreign accounts?
One of easiest ways for the IRS to discover your foreign bank account is to have the information hand-fed to them from various Foreign Financial Institutions.
What gets reported on Form 8938?
Form 8938 reporting applies for specified foreign financial assets in which the taxpayer has an interest in taxable years starting after March 18, 2010. For most individual taxpayers, this means they will start filing Form 8938 with their 2011 income tax return. the U.S. branch of a foreign financial institution.
What is the penalty for not reporting foreign bank account?
Penalties for failure to file a Foreign Bank Account Report (FBAR) can be either criminal (as in you can go to jail), or civil, or some cases, both. The criminal penalties include: Willful Failure to File an FBAR. Up to $250,000 or 5 years in jail or both.
Can you lose money investing in index funds?
Because index funds tend to be diversified, at least within a particular sector, they are highly unlikely to lose all their value. In addition to diversification and broad exposure, these funds have low expense ratios, which means they are inexpensive to own compared to other types of investments.