Find a new home for IRA from previous employer






65ecb  don taylor Find a new home for IRA from previous employerDear Dr. Don,
I rolled over a 401(k) from a former employer back in 2002 when I left for graduate school. I cannot recall how much money was actually rolled over, but the current balance is $ 5,000. I am certain that balance is far less than the amount that initially went into the account. I have not added any additional funds to it in the past 10 years. In fact, they made it somewhat complicated to change the account name after I was married, so everything with this particular individual retirement account, or IRA, rollover has been at a standstill for many years.


I have wanted to move this money elsewhere, such as into a Roth IRA or even into my current employer’s 401(k). Is that allowed? I am uncertain what the best course of action is and would like to know what you recommend. Please advise.
– Janet Juncture






Dear Janet,
If you’ve never completed the name change on the account, then you should take on that task again. The reason why I say that is the new account has to have the same name as the old account. Accomplish that task, and the money can be moved to another retirement account quite easily.


Then you have to decide between rolling it into a traditional IRA or a Roth IRA, or investing it in your current company’s 401(k) plan. A Roth IRA allows people to withdraw money in retirement tax-free.


Choosing which course to take depends on the investment options available in your 401(k) plan and the fees and expenses you’ll pay in investing the money in the different types of accounts. If you can find an inexpensive Roth IRA or traditional IRA, I lean toward those options because you have more investment choices. Others lean toward the convenience of having the money incorporated into their company’s 401(k) plan.


Part of the decision about whether to convert the money into a Roth IRA is your current marginal federal income tax bracket and your expected tax bracket in retirement. Another factor is whether or not you can afford to pay the income tax due from money other than the $ 5,000 account balance. If you can, that helps point to the decision to use the Roth IRA. There’s a host of Roth conversion calculators on the Internet that can help you make your decision, including one on Bankrate.com.



To ask a question of Dr. Don, go to the “Ask the Experts” page and select one of these topics: “Financing a home,” “Saving & Investing” or “Money.” Read more Dr. Don columns for additional personal finance advice.



Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use.


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Yen falls, Nikkei surges as Japan gets a new government

TOKYO (Reuters) - The yen fell to a 20-month low against the dollar on Wednesday, buoying the benchmark Nikkei stock average to nine-month highs, as Japan swore in a new prime minister eager to pursue drastic stimulus steps to drive the country's economy out of deflation.


Asian shares and other assets were capped in thin holiday trade, with investors focusing on the fate of U.S. negotiations to avert a budget crunch looming at the end of the year.


Markets in Singapore <.ftsti>, Malaysia <.klse>, Indonesia <.jkse>, the Philippines <.psi> and South Korea <.ks11> reopened on Wednesday after closing on Tuesday for the Christmas holiday.


Hong Kong and Australia remain closed on Wednesday. Europe also will not trade, but U.S. markets reopen later in the day.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was little changed. Shanghai shares <.ssec> were flat, but stayed in positive territory on the year after a 2.5 percent jump on Tuesday erased 2012 losses. It is set for a first annual gain in three years. South Korean shares <.ks11> ended nearly flat.


Shinzo Abe, whose party won a landslide victory in an election earlier this month, was elected Japan's premier on Wednesday. Abe, who is expected to appoint his cabinet later Wednesday, is calling for a mix of aggressive monetary policy easing and big fiscal spending to beat deflation and rein in the strong yen.


He has kept up pressure on the Bank of Japan to be more drastic and adopt a 2 percent inflation target to beat deep-rooted deflation, pushing the yen to a 20-month low of 85.38 yen on trading platform EBS on Wednesday. Traders eyed the dollar's 2011 high of 85.53 yen as the next target.


The euro rose as high as 112.55 yen on EBS, just below its 16-month high of 112.59 yen hit on December 19.


The weaker yen has bolstered hopes for better earnings from Japanese companies and underpinned the Nikkei, which has gained some 18 percent since mid-November when the election was scheduled, fuelling expectations for Abe's party to win. The yen has lost nearly 8 percent against the dollar in the same period.


The Nikkei <.n225> closed at a nine-month high with a 1.5 percent gain. <.t/>


"Most foreign funds have added Japanese shares and there are fewer participants today, but there still is a reason for the Nikkei to rise," said Hideyuki Okoshi, general manager at Chibagin Securities. "Not only exporters but investors are buying other stocks which could benefit under the new government."


Japanese government debt prices fell, with the 10-year bond futures hitting a three-month low of 143.65 in active trade. Ten-year JGB yields rose 1.5 basis points to 0.780 percent, matching a six-week high hit on December 19.


"We continue to see equities going high, so the pressure is on the long end of the JGB curve. For the short end of the curve, we continue to see the BOJ ease aggressively, so there is no change in that," said Tadashi Matsukawa, head of Japan fixed income at PineBridge Investments.


Minutes of the BOJ's policy-setting meeting in November, released on Wednesday, showed that some board members said the central bank must act decisively, without ruling out any policy options, if the outlook for the economy and prices worsens further.


"FISCAL CLIFF" RISK


The dollar was expected to stay firm this week as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.


Ten-year U.S. Treasury notes held steady in price to yield roughly 1.776 percent in Asia, little changed from late U.S. trade on Monday. The U.S. bond market was closed on Tuesday for Christmas.


"I think there is about a 50 percent chance of the cliff being avoided at the year-end through an agreement of some kind, even if it turns out to be just a short-term postponement," said Tomoaki Shishido, a rate analyst for Nomura Securities in Tokyo.


A U.S. official said on Tuesday that President Barack Obama may return to Washington from his Hawaiian holiday as early as Wednesday evening to address the unfinished negotiations over the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.


If the United States falls off the fiscal cliff, economists warn that the world's largest economy could plunge into recession and drag global economies down as well.


Data out of Asia on Wednesday underscored fragile global growth.


Exports in Thailand, Southeast Asia's second-largest economy, rose nearly 27 percent in November from a year ago, but that reflected recovery from flooding in late 2011 and not growth in global demand.


South Korea's key consumer sentiment index held steady in December from November and stood below the neutral point for a fifth consecutive month, diminishing hopes of a quick economic rebound.


Gold edged lower on Wednesday on uncertainty over the fiscal cliff, but a weaker yen sparked a rally in bullion futures on the Tokyo Commodity Exchange (TOCOM).


Brent crude climbed above $109 per barrel on Wednesday in thin trade, with investors hoping for a last-minute deal to avoid a U.S. fiscal crisis. U.S. crude futures also inched up 0.4 percent to $88.94.


(Additional reporting by Ayai Tomisawa and Dominic Lau in Tokyo and Masayuki Kitano in Singapore; Editing by Richard Borsuk)



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Pagano back to coach Colts after cancer treatment


INDIANAPOLIS (AP) — Chuck Pagano stepped to the podium Monday, hugged his team owner, thanked his family for its support and wiped a tear from his eye.


He might, finally, turn out the lights in his office, too.


Nearly three months to the day after being diagnosed with leukemia, the Colts' first-year coach returned to a team eager to reunite with a boss healthy enough to go back to work.


"I told you my best day of my life was July 1, 1989," Pagano said, referring to his wedding date. "Today was No. 2. Getting to pull up, drive in, get out of my car, the key fob still worked. I was beginning to question whether it would or not. When I asked for Bruce to take over, I asked for him to kick some you-know-what and to do great. Damn Bruce, you had to go and win nine games? Tough act to follow. Tough act to follow. Best in the history of the NFL. That's what I have to come back to."


The comment turned tears into the laughter everyone expected on such a festive occasion.


For Pagano and the Colts, Monday morning was as precious as anyone could have imagined when Pagano took an indefinite leave to face the biggest opponent of his life, cancer.


In his absence, all the Colts was win nine of 12 games, make a historic turnaround and clinch a playoff spot all before Sunday's regular-season finale against Houston, which they pegged as the day they hoped to have Pagano back. If all goes well at practice this week, Pagano will be on the sideline for the first time since a Week 3 loss to Jacksonville.


Pagano endured three rounds of chemotherapy to put his cancer in remission.


That Pagano's return came less than 24 hours after Indy (10-5) locked up the No. 5 seed in the AFC and the day before Christmas seemed fitting, too.


"I know Chuck is ready for this challenge. In speaking to his doctor multiple times, I know that the time is right for him to grab the reins, get the head coaching cap on and begin the journey," owner Jim Irsay said. "It's been a miraculous story. It really is a book. It's a fairytale. It's a Hollywood script. It's all those things but it's real."


The reality is that he's returning to a vastly different team than the one he turned over to Arians, his long-time friend and first assistant coaching hire.


Back then, the Colts were 1-2 and most of the so-called experts had written them off as one of the league's worst teams. Now, they're ready to show the football world that they can be just as successful under Pagano as they were under Arians, who tied the NFL record for wins after a midseason coaching change.


Pagano also has changed.


The neatly-trimmed salt-and-pepper hair and trademark goatee that were missing in November have slowly returned, and the thinner man who appeared to be catching his breath during a postgame speech in early November, looked and sounded as good as ever Monday.


He repeatedly thanked fans for their prayers and letters, the organization and his family for their unwavering help and promised to provide comfort and support to other people who are facing similar fights. During one poignant moment that nearly brought out tears again, Pagano even recounted a letter sent to him by a 9-year-old child who suggested he suck on ice chips and strawberry Popsicles in the hospital and advised him to be nice to the nurses regardless of how he felt — and he never even paused.


"I feel great, my weight is back, my energy is back and again, it's just a blessing to be back here," Pagano said.


In the minds of Colts players and coaches, Pagano never really left.


He continually watched practice tape and game film on his computer, used phone calls and text messages to regularly communicate with players and occasionally delivered a pregame or postgame speech to his team.


"He texted me and called me so much, it was like he was standing there in my face every day," said receiver Reggie Wayne, who has been friends with Pagano since the two were working together at the University of Miami.


But the Colts found plenty of other ways to keep Pagano's battle in the forefront.


They began a fundraising campaign for leukemia research, calling it Chuckstrong. Players had stickers with the initials CP on their locker room nameplates, and Arians wore an orange ribbon on his baseball cap during games. Orange is the symbolic color for leukemia. At one point, nearly three dozen players shaved their heads to show their ailing coach they were with him.


That's not all.


Arians and first-year general manager Ryan Grigson decided to leave the lights on in Pagano's office until he returned. Pagano noted the team even installed plastic clips to make sure those lights were not mistakenly turned off while he was gone. Those clips were removed when Pagano arrived Monday morning.


And Arians said nobody sat in the front seat of the team bus.


"He's always been our head coach," Arians said.


So after getting medical clearance from his oncologist, Dr. Larry Cripe, to return with no restrictions, Pagano couldn't wait to get to the office Monday morning.


Arians arrived at 7 a.m., three hours early for the scheduled team meeting. By then, Pagano had already driven past the inflatable Colts player with the words "Welcome Back Chuck" printed on its chest and was back in his office preparing for the Texans.


Players showed up a couple of hours later, and when the torch was passed from Arians back to Pagano, players gave their returning coach a standing ovation that Wayne said was well-deserved.


All Pagano wants to do now is emulate the success Arians and his players have had this season.


"I asked him (Arians) if he would lead this team and this ballclub and this organization and take over the reins," Pagano said. "What a masterful, masterful job you did Bruce. You carried the torch and all you went out and did was win nine ballgames. You got us our 10th win yesterday and you got us into the playoffs. You did it with dignity and you did it with class. You're everything that I always knew you were and more."


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Six political lessons of 2012
















































































2012: The year in pictures


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STORY HIGHLIGHTS


  • Julian Zelizer: 2012 was a year of bitter domestic battles, turbulence overseas

  • He says the weakness of GOP, renewed strength of liberalism were apparent

  • Zelizer says the year also highlighted the influence of new immigrants in America

  • Zelizer: Year ended with a tragic reminder about need to act on gun control




Editor's note: Julian Zelizer is a professor of history and public affairs at Princeton University. He is the author of "Jimmy Carter" and of the new book "Governing America."


(CNN) -- 2012 has been a tumultuous year in American politics. With the presidential election capping off the year, Americans have witnessed a series of bitter domestic battles and turbulent events overseas. As the year closes out, it is worth thinking about some of the most important lessons that politicians and voters can learn from this year as they prepare for 2013.


Here are six:


The Republican brand name is in trouble: The GOP took a drubbing in 2012. To be sure, Mitt Romney ran a problematic campaign. His inability to connect with voters and a number of embarrassing gaffes hurt the chances for Republicans to succeed.



Julian Zelizer

Julian Zelizer



Just as important to the outcome was the party that Romney represented. Voters are not happy with the GOP. Public approval for the party has been extremely low. Congressional Republicans have helped to bring down the party name with their inability to compromise.


Recent polls show that if the nation goes off the fiscal cliff, the Republicans would be blamed. According to a survey by NBC and the Wall Street Journal, 65 percent of people asked for a short word or phrase to describe the GOP came up with something negative. The Republican Party was also the lowest-rated political institution.



The exit polls in November showed that the GOP is out of step with the electorate on a number of big issues, including immigration and gay marriage. If Republicans don't undertake some serious reforms and offer fresh voices, all the new messaging in the world won't help them as the competition starts for 2016.


Opinion: Madness in the air in Washington


America has grown more liberal on cultural and social issues: The election results confirmed what polls have been showing for some time. If the 1960s was a battle over conservative "traditional family values" and liberal ideals of social relations, liberals eventually won. Throughout the year, polls showed, for example, that the public was becoming more tolerant of gay marriage and civil unions. Americans support the view that gay sex should be legal by a margin of 2-1, compared to 1977 when the public was split.


In the election, same-sex marriage was approved in three states, voters in Wisconsin sent to office the first openly gay senator, and two states approved of referendums to legalize the recreational use of marijuana. Americans are accepting of social diversity, and expect that the pluralism of the electorate will be reflected by the composition of elected officials in Washington.


While there are some conservative voices who lament these changes and warn of a nation that is veering toward Sodom, a majority are more than comfortable that some of the taboos and social restrictions of earlier eras are fading and that we live in a nation which is more tolerant than ever before. These social and cultural changes will certainly raise more questions about restrictive practices and policies that remain in place while creating pressure for new kinds of leaders who are responsive to these changes.


The Middle East remains a tinderbox: In the years that followed Barack Obama's election, there was some hope that the Middle East could become a calmer region. When revolutions brought down some of the most notorious dictators in the region, many Americans cheered as the fervor for democracy seemed to be riding high.








But events in 2012 threw some cold water on those hopes. The Muslim Brotherhood won control of the Egyptian government. In Syria, the government brutally cracked down on opponents, reaching the point in December where Obama's administration has started to talk about the possibility of the al-Assad regime using chemical weapons, though the severity of the threat is unclear. The battles between Palestinians and Israel raged with rockets being fired into Tel Aviv and Israelis bombing targets in Gaza.


Although national attention is focused on domestic policy, it is clear that the Middle East has the capacity to command national attention at any moment and remains as explosive as ever.


Our infrastructure needs repair: Hurricane Sandy devastated the Northeast in November, leaving millions of Americans on the East Coast without power and with damaged property. Soon after the hurricane hit, New York Gov. Andrew Cuomo made an important point. The infrastructure of our cities is outdated and needs to be revamped so that it can withstand current weather patterns. Speaking of the need for levees in New York, Cuomo said: "It is something we're going to have to start thinking about ... The construction of this city did not anticipate these kinds of situations."


Regardless of whether Congress takes action on the issue of climate change, in the short term cities and suburbs must do more work to curtail the kind of damage wreaked by these storms and to mitigate the costs of recovery -- building underground power lines, increasing resources for emergency responders, building state-of-the-art water systems, and constructing effective barriers to block water from flooding.


The new immigrants are a powerful political and social force: As was the case in the turn of the twentieth century when Eastern and Southern Europeans came into this county, massive waves of immigration are remaking the social fabric of the nation. Latino-Americans, Asian-Americans and other new portions of the electorate who have been coming into the country since the reform of immigration laws in 1965 are coming to represent a bigger and bigger portion of the electorate.


Not only are their numbers growing as a voting bloc, but they are more organized and active than ever before, both on election day as well as in policy making.


Soon after the election, The New York Times reported that 600 members of United We Dream, a network of younger immigrants who don't have their papers, met for three days to plan how to lobby for a bill that would enable 11 million illegal immigrants to become legal. One of the leaders, Christina Jimenez, explained: "We have an unprecedented opportunity to engage our parents, our cousins, our abuelitos in this fight." They have both parties scrambling as Democrats are working to fulfill the promises that brought these voters to their side in November, while some Republicans are desperate to dampen the influence of hardline anti-immigration activists in their party.


We need to do something about guns. The year ended with a horrific shooting at an elementary school in Connecticut. When a 20-year-old went on a rampage apparently using guns that had been legally purchased by his mother, the world watched with horror. Several prominent conservative advocates of gun rights, including former congressman and television host Joseph Scarborough as well as Sen. Joe Manchin, made statements indicating that the time has come to impose stricter controls and regulations on the purchase of weapons. "I don't know anybody in the sporting or hunting arena that goes out with an assault file," Manchin said.


Over the next few weeks, there will certainly be a big debate about what caused this shooting. People from different perspectives will highlight different issues but making it more difficult for people to get their hands on certain kinds of weapons, while not a cure-all, can only diminish the chances of this happening again.


There are many more lessons but these six stand out. After the trauma of the past week, let's hope the new year starts off with better days.



Follow us on Twitter @CNNOpinion


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The opinions expressed in this commentary are solely those of Julian Zelizer.






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Jack Klugman, famed for TV role on “The Odd Couple,” dead at 90






LOS ANGELES (Reuters) – Emmy-winning actor Jack Klugman, a versatile, raspy-voiced mainstay of U.S. television during the 1970s and early ’80s through his starring roles in “The Odd Couple” and “Quincy, M.E.,” died on Monday at the age of 90.


Klugman, whose pairing with Tony Randall on “The Odd Couple” created one of television’s most memorable duos, died at his home in the Woodland Hills section of Los Angeles following a period of declining health, according to his son, Adam Klugman.






“He went very suddenly and peacefully … he was there one minute and gone the next,” the actor’s son told Reuters, adding that the elder Klugman had “been in convalescent mode for awhile.”


He said his father had lost his ability to walk and spent much of his time in bed. His wife of four and a half years, Peggy Crosby, former daughter-in-law of the late singer Bing Crosby, was with him when he died, his son said.


In addition to his TV success, Klugman enjoyed a healthy career on the stage as well as in movies and made successful forays into horse breeding and political activism. Not even the loss of a vocal cord to cancer in 1989 could silence him for long.


Klugman gained fame for playing slovenly sports writer Oscar Madison in the sitcom “The Odd Couple” – a role he also had played on Broadway – and then as a crusading coroner in the crime drama “Quincy, M.E.


The Odd Couple,” based on Neil Simon’s play about two disparate divorced men forced to share an apartment, ran for five years on the ABC network, starting in 1970, but was never a hit during that time. Only through reruns did Klugman and co-star Randall, who played neat-freak Felix Unger, leave their mark as one of U.S. television’s great sitcom teams.


“We had wonderful respect for one another, we liked working together but we never became friends,” Klugman told the Miami Herald in 2005. “I think that was on account of me. I was withdrawn. I never let anybody get too close.”


It was not until Klugman’s cancer surgery, following years of heavy smoking and throat problems, that a friendship developed with Randall. Klugman had no voice and was glumly resigned to the end of his acting career, but with Randall’s encouragement, he returned to the stage.


They resurrected their “Odd Couple” roles in a 1993 TV movie, and Klugman paid tribute to Randall, who died in 2004, in the memoir “Tony and Me: A Story of Friendship.”


Quincy, M.E.,” which ran on NBC from 1976 to 1983, saw Klugman assume a heavy behind-the-scenes role. He recalled that he spent 20 hours a day working on the series, and he twice sued its producer, Universal Studios, for a share of the net profits he claimed were owed to him.


LOVE OF HORSES


Horses were perhaps Klugman’s first love – both as a keen gambler starting in his teens and later as a breeder. One of his horses, Jaklin Klugman, finished third in the 1980 Kentucky Derby and earned millions as a stud.


Born Jacob Joachim Klugman on April 27, 1922, he grew up in a tough Philadelphia neighborhood. In 1945 a loan shark was after him due to gambling losses so he fled to Pittsburgh, where he studied drama at Carnegie Tech and worked several jobs to settle his debts.


Two years later in New York, Klugman appeared opposite Henry Fonda in the national stage production of “Mr. Roberts.” In 1960, Klugman received a Tony nomination for his supporting role in the musical “Gypsy.”


In Hollywood, Klugman had notable supporting roles in such films as “12 Angry Men” (1957), “Days of Wine and Roses” (1962) and “Goodbye, Columbus” (1969).


He won the first of three Emmys in 1964 for an appearance on the legal drama “The Defenders.” Klugman and Randall each received Emmy nominations for each of the “Odd Couple” seasons, with Klugman winning in 1971 and 1973 and Randall in 1975.


Klugman also earned four Emmy nominations for NBC’s “Quincy, M.E.” His character, who stepped out of his role as medical examiner to solve murders that flummoxed the Los Angeles police, never had a first name.


Klugman is survived by Crosby, his second wife, whom he married in 2008 after a 20-year courtship; and two sons, Adam and David, from his first marriage to late “Match Game” panelist Brett Somers. Klugman and Somers were separated for more than 30 years of their 54-year marriage, which ended with her death in 2007.


(Reporting by Piya Sinha-Roy; additional reporting and writing by Dean Goodman; Editing by Steve Gorman and Paul Simao)


TV News Headlines – Yahoo! News





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Japan’s policy veteran Motegi likely to serve as trade minister: media






TOKYO (Reuters) – Incoming Japan Prime Minister Shinzo Abe is likely to pick policy veteran Toshimitsu Motegi as trade minister, who will also take charge of energy and other key economic policies, media reported on Tuesday.


Motegi, 57, a former policy affairs chief for the Liberal Democratic Party (LDP), will tackle energy problems after last year’s Fukushima nuclear crisis, as well as issues such as the U.S.-led Trans-Pacific Partnership (TPP) free trade pact, public broadcaster NHK said.






Motegi was a leading member of the LDP’s panel tasked with drafting an economic revival plan aimed at tackling the strong yen, deflation and preventing Japanese firms from shifting overseas.


The LDP returned to power in the December 16 election for the lower house, calling for radical monetary easing and big spending on public works.


First elected to parliament in 1993 as a member of a small opposition party, Motegi joined the LDP shortly thereafter and has served posts including parliamentary vice-minister for the trade ministry and senior vice-minister for foreign affairs.


Motegi’s formal appointment is likely to be made on December 26, when Abe is expected to be elected as prime minister in parliament and form a new cabinet.


(Reporting by Tetsushi Kajimoto)


Economy News Headlines – Yahoo! News





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Paying tax on late grandparents’ savings bonds






Dear Tax Talk,
My grandparents are now deceased. They had a number of savings bonds. How is the savings bond interest reported? The original purchase price was approximately $ 33,000. Interest accumulated to date is approximately $ 80,000. The six heirs will divide the bonds. Is the interest accumulated from the savings bonds until the date of death used on the last personal tax Form 1040? Or is all the interest received from them placed on the final estate taxes? Thank you.
– Marcia


Dear Marcia,
There are generally two ways to report the interest on U.S. savings bonds: Annually on the owner’s tax return or at maturity. When there is a change of ownership, as in your case, the method of reporting can be changed. These bonds are known as Series E, EE or I bonds. Series HH bonds are taxed as you go because the interest is paid twice a year. If you’ve determined your grandparents have not reported the annual interest on these bonds, then there are tax consequences as a result of their death. According to IRS Publication 550:






If the transferred bonds were owned by a decedent who had used the cash method and had not chosen to report the interest each year, and who had bought the bonds entirely with his or her own funds, all interest earned before death must be reported in one of the following ways.


  1. The surviving spouse or personal representative (executor, administrator, etc.) who files the final income tax return of the decedent can choose to include on that return all interest earned on the bonds before the decedent’s death. The person who acquires the bonds then includes in income only interest earned after the date of death.

  2. If the choice in (1) is not made, the interest earned up to the date of death is income in respect of the decedent and should not be included in the decedent’s final return. All interest earned both before and after the decedent’s death (except any part reported by the estate on its income tax return) is income to the person who acquires the bonds.

If that person uses the cash method and does not choose to report the interest each year, he or she can postpone reporting it until the year the bonds are cashed or disposed of or the year they mature, whichever is earlier. In the year that person reports the interest, he or she can claim a deduction for any federal estate tax paid on the part of the interest included in the decedent’s estate.


So basically, if the bonds are not maturing and are being distributed in kind to the beneficiaries, then the interest can continue to be deferred until maturity. At maturity, the beneficiary would include all the savings bond interest, including the portion that belonged to the grandparents.


Alternatively, and probably the method that will result in the least tax, is to make the election in No. 1 above and include it on your grandparents’ final Form 1040. If you choose to report it on the estate’s tax return, which you would have to do if they were cashed in and you don’t make the election in No. 1, then the tax will probably be higher. The tax rates applicable to an estate income tax return are higher than those that would probably apply to your grandparents.



To ask a question on Tax Talk, go to the “Ask the Experts” page and select “Taxes” as the topic. Read more Tax Talk columns.



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Yen on defensive on U.S. fiscal worry, helps Nikkei

TOKYO (Reuters) - Uncertainty over whether U.S. lawmakers will strike a deal by an end-of-year deadline to avert a severe fiscal retrenchment undermined the yen and bolstered Japanese shares on Tuesday in low volume, with many participants away on Christmas holiday.


The dollar rose to a 20-month high of 84.965 yen early on Tuesday in Asia, as Japanese markets caught up with global investors who had reacted overnight to incoming Japanese Prime Minister Shinzo Abe's weekend comments that raised the pressure on the Bank of Japan.


During a meeting on Tuesday with officials from Japan's major business lobby, Keidanren, Abe reiterated calls on the BOJ to conduct bold monetary easing to beat deflation by setting an inflation target of 2 percent.


The head of Abe's coalition partner said on Tuesday the coalition party and Abe had agreed to set a 2 percent inflation target and compile a large stimulus budget to help the economy return to growth and overcome deflation.


The yen has come under pressure as a result of expectations that the BOJ will be compelled to adopt more drastic monetary stimulus measures next year.


The dollar was expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.


"The dollar is seen relatively well bid, with all focus on the fiscal cliff," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.


"Negotiations may be carried over the weekend, but markets still expect a deal to be struck by December 31. It is unthinkable that the U.S. will risk driving its economic growth sharply lower by not agreeing to avoid it."


U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.


House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.


Japan's Nikkei stock average <.n225> resumed trading after a three-day weekend with a 1.1 percent gain, recapturing the key 10,000 mark it ceded on Friday after Boehner's failure sparked a broad market sell-off and the Tokyo benchmark closed down 1 percent. The Nikkei was likely to be supported as long as the yen stayed weak. <.t/>


"Ongoing optimism about the weak yen is lifting hopes that exporters' earnings will be better than expected," said Hiroichi Nishi, general manager at SMBC Nikko Securities.


Analysts say a near-term correction may be possible as the index is now in "overbought" territory after gaining 16.2 percent over the last six weeks, hitting a nine-month high last Friday. Its 14-day relative strength index was at 72.34, above the 70 level that signals an overbought condition.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> nudged up 0.1 percent, driven higher by surging Shanghai shares, as most Asian bourses were shut for Christmas.


The Shanghai Composite Index <.ssec> soared over 2 percent to five-month highs as investors bought property stocks on mounting optimism about the sector. Taiwan shares <.twii> jumped 1.3 percent on gains in technology and financial shares.



Asset performance in 2012: http://link.reuters.com/muc46s


2012 commodities returns: http://link.reuters.com/faz36s


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


U.S. HOLDS 2013 KEY


Goro Ohwada, president and CEO at Japan-based fund of hedge funds Aino Investment Corp, said investors were likely to focus on economic fundamentals and the United States for cues on investment direction in 2013.


"There is a feeling that an investment strategy based on economic fundamentals may finally work next year, with asset prices more closely reflecting fair value. The problem is, we don't know yet which asset is a better bet than others," Ohwada said, adding that oil and gold appeared to be near their highs.


Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory, said commodities and energy prices will likely move in tight ranges in 2013, with investors eyeing political events, including the U.S. fiscal cliff outlook, Italian parliamentary election set for February 24-25, and Germany's elections in September.


"The macroeconomic policies taken this year around the world to support growth are expected to result in a moderate recovery in 2013 to reduce an excessive downside risk to prices. This will likely keep commodities, gold and energy prices near their highs," Niimura said.


(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Edmund Klamann and Daniel Magnowski)



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Seahawks roll past 49ers in noisy Seattle 42-13


SEATTLE (AP) — Red Bryant remembers the early years of his career, when the Seattle Seahawks struggled to win only four and five games in his first two seasons.


Getting a 10th win on Sunday night and a trip to the postseason was special to the Seahawks' big defensive end.


"Who has been playing better than us the last few weeks?" Bryant questioned. "This is the National Football League and you don't get any gimmies. We work hard to win. ... It's hard to win in this league."


Russell Wilson threw a career-high four touchdown passes to move into second place for most TD passes by a rookie, Marshawn Lynch scored two first-quarter TDs, and the Seahawks routed the San Francisco 49ers 42-13.


Richard Sherman returned Bryant's blocked field goal 90 yards for another touchdown as the Seahawks (10-5) jumped to a 21-0 lead. That only added to an already hyped crowd on a typically cold and rainy December night, with noise echoing off the walls and overhanging roof of CenturyLink Field that might have been heard all the way across Puget Sound.


No one appeared to care about the weather, not with the performance they were seeing on the field. And not with a ticket to the postseason guaranteed thanks to Seattle's first 10-win season since 2007.


"We knew we were capable of doing this. We had no doubt. Even in Week 1, we knew that we had the talent to do what we're doing now," said wide receiver Doug Baldwin, who had two touchdown receptions. "It took time because we're a young team. We had to mature. We had to grow together, build that chemistry, build that trust out there on the field. That's the most important thing."


Seattle surged into the playoffs on the strength of its sixth win in seven games, putting up dizzying offensive numbers that no one thought would continue against the top scoring defense in the NFL but did.


Seattle has outscored its last three opponents 150-30. The 42 points were the most allowed since Jim Harbaugh took over the 49ers, and the most San Francisco yielded since giving up 45 to Atlanta in 2009. It was the perfect way for Seattle coach Pete Carroll to snap a three-game losing streak against his rival.


"We just try to play really good football and see what happens at the end," Carroll said. "We have been scoring and doing a nice job of it and it would be great If we can keep it rolling."


Seattle will likely be the No. 5 seed in the NFC. There remains a slight chance of winning the NFC West, if the Seahawks beat St. Louis in the season finale and Arizona can upset the 49ers in San Francisco.


The Seahawks, 7-0 at home, delayed San Francisco (10-4-1) from celebrating a division title. They turned Harbaugh's 49th birthday into a miserable evening.


"If you had told me this would be the outcome I wouldn't have believed it," Sherman said. "I would say you're making this up."


Wilson hit Lynch on a 9-yard TD in the first quarter, Anthony McCoy for a 6-yarder late in the first half, and Doug Baldwin on 4 and 6 yard TDs in the second half.


Wilson has 25 TD passes, one behind Peyton Manning's NFL rookie record of 26. He finished 15 of 21 for 171 yards. His only incompletion in the first half was a deflected pass that Patrick Willis intercepted.


Wilson's counterpart, San Francisco's Colin Kaepernick, had already proven himself capable of winning on the road with victories in New Orleans and last week in New England. But Seattle is a different beast, widely regarded by players as the loudest venue in the NFL. His inexperience playing in such an environment showed. He was flustered and disorganized at the line of scrimmage, letting the noise from Seattle's fans affect him.


Kaepernick's forgettable night was capped when Sherman stepped in front of his pass intended for Randy Moss at the back of the end zone on the first play of the fourth quarter for his seventh interception of the season.


Kaepernick was 19 of 36 for 244 yards with an 18-yard TD pass to Delanie Walker with 1:40 left. Frank Gore had just 28 yards on six carries after rushing for a season-high 131 when the teams met in Week 7.


"Every time you are on the field you are learning something," Kaepernick said. "We just have to take what we can from this game and move on to next week."


San Francisco played without defensive tackle Justin Smith due to an elbow injury that ended a streak of 185 starts. The 49ers lost tight end Vernon Davis in the first quarter with a concussion sustained when he was knocked off his feet on a huge hit along the sideline from Seattle safety Kam Chancellor that looked legal but drew a penalty for hitting a defenseless receiver.


San Francisco wide receiver Mario Manningham went down with a left leg injury early in the third quarter when he was tackled low by Leroy Hill and fumbled.


The loss of Smith affected the entire defense. Aldon Smith was left stuck on 19 1-2 sacks after being locked up by Seattle offensive tackle Russell Okung.


"We can't make excuses," 49ers' safety Donte Whitner said. "We understand: We lost the football game; we lost an ugly football game."


NOTES: Lynch finished with 111 yards on 26 carries, his third straight game over 100 yards vs. the 49ers. ... Seattle was 11 of 13 on third-down conversions, a season-high. ... The 49ers were held to 82 yards rushing, just the third time this season he was held under 100 yards.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Seeking the truth about Jesus




A nativity scene from St. Catherine's Church in Bethlehem in the West Bank.




STORY HIGHLIGHTS


  • Jay Parini: There are as many visions of Jesus, and versions, as there are Christians

  • Parini: As a child, I wondered why only two of the gospels mention Christmas

  • He says he believes firmly that Jesus was a real person, complex and inspiring

  • Parini: Jesus's life has mythical resonance with the power to change hearts and minds




Editor's note: Jay Parini, poet and novelist, is author of the forthcoming book, "Jesus: The Human Face of God." He is the Axinn Professor of English at Middlebury College.


(CNN) -- At Christmas, the name of Jesus resounds everywhere in homes, churches, in hauntingly gorgeous carols, even casual conversations. Yet Christians didn't settle on December 25 as Christmas day until the fourth century, and this choice probably had something to do with its proximity to the winter solstice or its position as the final day of the Roman Saturnalia.


It was in the late third century, in fact, that the Roman emperor Aurelian established this date as a feast day celebrating the birth of the Unconquered Sun (Sol Invictus), so it already had festive and quasi-religious prominence. Now it serves to welcome the infant who became Christ, the Greek word for Messiah.


There are probably as many visions of Jesus, and versions, as there are Christians. Many regard him as their savior, the Son of God sent to Earth to save human beings from themselves. Others see him as a great teacher, a healer or rabbi of extraordinary power, a holy man or prophet who proposed a new covenant between heaven and earth. To some, he represents a new world order, an egalitarian society, a preacher of nonviolence who asked us to turn the other cheek.



Jay Parini

Jay Parini



Was he the long-awaited Messiah? The Lamb of God who removes the sin of the world by his self-sacrifice? King of the Jews? Or something less dramatic but still impressive -- an ethical teacher of extraordinary grace and power?



My father, a former Roman Catholic, became a Baptist minister, and I grew up with an insider's view of evangelical Christianity. My father read the Bible aloud at breakfast each morning, always in the King James Version. Beginning in December, I listened to the sonorous birth narratives of Luke and Matthew. In the latter, there are Wise Men coming from the East, a mysterious star, the massacre of innocent children by King Herod, and a flight to Egypt by the Holy Family.


Belief Blog: The Christmas message of the real St. Nicholas


My father, like me, preferred the gentler Christmas story put forward by Luke: "And there were in the same country shepherds abiding in the field, keeping watch over their flock by night. And, lo, the angel of the Lord came upon them, and the glory of the Lord shone round about them: and they were sore afraid. And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy, which shall be to all people."


I remember asking my father one day why these two Christmas stories seemed incompatible, at best. Even the lineages put forward by Matthew and Luke have few points of reconciliation. I also wondered why the two other Gospels -- Mark and John -- made no mention of Christmas.










Why was there no mention of Christmas anywhere else in the whole of the Bible? Didn't they care? He was a gentle but cautious fellow, my father, with a rock-solid faith. "It's probably better not to ask difficult questions," he said. "God will, in time, provide the answers. But not now. Not in this life." He told me simply to enjoy Christmas.


That didn't satisfy me, of course. Why should it? I realized that, as St. Paul so elegantly put it, we see only "through a glass darkly" while on this earth. But wasn't that too easy? I needed to know more.


And I still want to know the truth about this luminous figure, Jesus of Nazareth. Was he really the Son of God? Why was he sent into the world? Do we know anything about him, really? To consider yourself a Christian, must you believe in the Virgin Birth, or that Jesus walked on water, healed the sick, and rose triumphantly from the dead? Does it matter if we take all of this on board in a literal fashion? Isn't this a lovely mythos -- the Greek word for story -- a narrative with symbolic resonance and profound meaning?


Christmas by the numbers


Jesus himself seemed unwilling to answer questions about his royal status or divinity. When asked by Pontius Pilate about his status as King of the Jews, he simply replied, "You say so." Many in his circle referred to as the Son of God, but this wasn't an especially divine title. Augustus Caesar was called Son of God -- Divi filius -- on Roman coins. Jesus certainly regarded himself as having a filial connection to the person he called, in his native Aramaic, Abba, or Father. But doesn't that only mean he felt like a son before this personified spirit?


He was also called the Son of Man, reaching back to an ancient Hebraic phrase, which had rather humbling connotations. (It was in the Book of Daniel that a visionary figure called the Son of Man came into view, in apocalyptic terms).


All attempts to classify Jesus seem hopelessly inadequate.


As I've grown older, I appreciate more than ever before the strength of this figure, Jesus, who emerges in the four canonical Gospels, and the Gnostic gospels, as a witty, intelligent, complex, inspiring, and often contradictory person. He was a religious genius who grew up on the Silk Road in ancient Palestine, on that magical trade route connecting East and West.


From the West he acquired an understanding of Greek metaphysics, with its remarkable formulation of body and soul. From the East came the winds of mysticism, a sense of self-transformation based on the loss of selfhood, with enlightenment the ultimate goal. Jesus brings East and West together, focusing on his key idea -- that of a gradually realizing kingdom, a mystical space beyond time, though it requires time in order to root and grow. As he told someone who asked where this lofty kingdom lay: "The kingdom of God is within you."


Photos: Santas over the years


Too many Christians regard their religion as a list of boxes that need checking. To belong, you must subscribe to a particular set of beliefs. It's dogma, pure and simple. I suspect that Jesus himself would have been startled to think that, many centuries after his death, more than 2 billion people would celebrate his coming into the world, find his message of a gradually realizing kingdom an inspiring challenge, worthy of serious pursuit, devotion and emulation.


Jesus was a real person who lived in time, and his life has huge mythical resonance with the power to change hearts and minds. I believe that firmly. At this stage of my life -- a senior citizen, as they say politely -- I'm also quite happy to believe in miracles, assuming that the membrane between life and death is paper thin.


All Christian thinking is, however, about resurrection. It's about moving beyond our small selves, shifting away from our ego-drenched understanding of reality. The way of Jesus involves engagement with his (often difficult) teachings as well as looking for those unspeakably beautiful moments in time when, for just a few seconds perhaps, we apprehend the timeless moment in time.


Life mostly offers, as T.S. Eliot suggests in "Little Gidding," "only hints and guesses, / Hints followed by guesses." The rest is "prayer, observance, discipline, thought and action."


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The opinions expressed in this commentary are solely those of Jay Parini.






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