mutual funds
if i roll over a mutuel fund {fidelity} to another{vanguard} will it effect my senior freeze,Thank you
Terry Says
If you’re talking about mutual funds INSIDE an individual retirement account, there will be no impact on income (as long as you contact Fidelity or Vanguard to handle the transaction as a direct rollover). So there wouldn’t be any taxable income that could impact your senior freeze.
On the other hand, if these mutual funds are NOT inside an IRA, then you would in effect be selling the shares and taking the cash to a new mutual fund provider. That COULD result in a taxable gain, that would be reported on your income — and MIGHT impact your senior freeze.
Assuming you live in Illinois here is the income level for the senior freeze:
To apply for the senior freeze exemption, the applicant must: Be a senior citizen with an annual household income of $65,000 or less. Have owned and occupied the home on January 1, 2019 and January 1, 2020 and have been responsible for the 2019 and 2020 taxes to be eligible for Tax Year 2020 (payable in 2021).
So make sure you know how much of a gain you will have before making this decision.
