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An organization similar to an investment company in that investors purchase shares in the trust. Investments are concentrated in real estate such as mortgages, construction loans and sometimes raw land.

The charge made by some no-load mutual funds when the investor sells shares back to the investment company.

An investment company qualifying under subchapter M. It must, among other criteria, derive at least 90% of its income from dividends, interest and capital gains from the sale of portfolio securities and have at least 50% of its assets invested in diversified securities.

The federal regulation governing such things as minimum premature withdrawal penalties on certificates of deposit.

An arrangement with a mutual fund which allows shareholders to reinvest their returns in new shares of the fund rather than receive them in cash.

To transfer money from one plan or account to another. Funds may be rolled over once every 12 months from one IRA account to another IRA account, provided they are reinvested within 60 days. Likewise, funds received from a qualified corporate pension plan or Keogh plan may be rolled over to an IRA provided they are reinvested within 60 days. In both situations, the rollover avoids paying current taxes on the funds.

Effective January 1, 1998 as a result of the Tax Reform Act of 1997 a non-deductible IRA was introduced. Instead of giving a deduction when contributions are made, the Roth IRA eliminates the tax on qualifying distributions. Once you put money into a Roth IRA, there are no more tax consequences (unless withdrawals are made counter to the rules). See details for eligibility requirements.

Traditional IRAs may be "converted" to Roth IRAs. With a traditional IRA, the tax is paid when the money is withdrawn. With a Roth IRA, tax is paid before a contribution is made and then never again (if all requirements are met). The IRS does not allow an investor to convert a traditional IRA into a Roth IRA unless the tax s paid-for the year of the rollover. A special rule applies for 1998 conversions that allow the tax to be spread over four years.