New Year’s Day 2020: Holiday trading schedule, plus IRA info
WASHINGTON – Just in case you missed our earlier information on the Christmas and New Year’s holiday week trading and settlement schedules, we decided to run the New Year’s Day 2020 portion of that information once again. Plus, some end-of-year IRA info. Given all the shopping, gift-giving, gift-returning, traveling and church-going activities (primarily attributed to the nation’s Deplorables), it’s probably a good idea to check out the rest of this schedule once more.
Well, because next week — Monday, December 30 and Tuesday, December 31 — we have the last two official trading days of calendar year 2019. These last trading days in a calendar year can be a bit more crucial than most for traders and investors who also have an eye peeled for any last-minute profits or losses they can take to have an impact on their 2019 tax returns. Right, you don’t have to file on New Year’s Day 2020. But you’ll probably want to lock your gains and losses down one way or another, before the end of this year. Which leads to a quick check of end-of-year IRA info and info on capital gains and losses and how they might affect your upcoming 2019 tax returns.
Capital Gains and Losses in IRA accounts: Usually no problem
First, a routine bit of IRA info. Gains and losses don’t matter much, tax-wise, when it comes to self-directed IRAs. Whether you have a Roth or a regular IRA, gains, losses, dividends and interest accrue within these accounts generally without current tax consequences.
Caveat: Check the rules if you’re getting a ton of income from limited partnerships and the like in ALL your accounts. If the income received in total exceeds $1,000 in a calendar year, a portion of the IRA income could be subject to tax, at least the last time we looked. Check with your broker and / or tax advisor to see what the current rules are. A lot of taxpayers don’t know about this little IRA info tidbit. Knowing about it avoids unpleasant surprises in your upcoming tax return filing.
Capital Gains and Losses in non-IRA cash and margin accounts have tax consequences
On the other hand, gains and losses in normal, non-IRA cash or margin accounts do affect your taxes. Essentially, in these non-tax sheltered accounts, short- and long-term capital gains are taxed, netting gains and losses for a final number, plus or minus. If you have net gains on the year, that adds to your taxable income. On the other hand, if you have net losses, you can deduct them, to an extent, from your gross income, reducing that number and helping you out at least a bit on your final tax.
As with bank accounts, however, dividends and interest received in your non-IRA accounts also effectively add to your taxable income.
Gains and losses in regular accounts will affect your 2019 tax returns
There’s little you can do this late in the year to avoid having to add in those interest and dividend numbers to your tax return. If you sell X shares of Y stocks, you take a capital gain, or deduct the capital loss, for this tax year. But whatever you do, the window is closing. So book those numbers before December slips away.
Your tax accounting starts all over again on January 1, 2020. Note, however, that if you’re running an LLC or a Subchapter S business, your tax year may be different.
So, with all that understood, here’s a reprise of next week’s unusual trading schedule, which takes the New Year’s Day 2020 festivities into account.
New Year’s Week Stock and Bond Trading Schedule for the US and Canada
Tuesday, December 31, 2019
- US equity, options and futures markets are open as usual.
- However, bond and mutual fund markets will close at 2:00 p.m. ET. Orders placed after the markets close will reflect a trade date of January 2, 2020.
- Pre-Market and After Hours trading sessions take place as usual.
- The Canadian markets are open as usual.
- Requests to move money received after standard cut-off times will generally not be processed until Thursday, January 2, 2020. Be sure to check with your broker to confirm if this may be of concern.
Wednesday, New Year’s Day 2020 (January 1)
- All US and Canadian markets are closed for the New Year’s Day holiday.
- There will be no Pre-Market or After-Hours trading sessions.
- Those trading on global exchanges should check with their brokers before the holidays. Make sure you know what rules may be in effect on international exchanges
- Depending on your brokerage firm, due to year-end processing, some market data may temporarily display previous business day pricing information on positions, balances, etc. Processing generally stabilizes by January 2 or 3. If you have questions, be sure to check with your broker.
Year end trading schedule box score: Equities orders to settle as follows.
|Trade Date||Settlement Date|
|Monday, December 30, 2019||Thursday, January 2, 2020|
|Tuesday, December 31, 2019||Friday, January 3, 2020|
Happy New Year’s Day 2020 to all!