With tax season approaching …
Now is the time for a fiscal physical
Just like your body, your investments periodically need a thorough check-up to help ensure they’re
fully “in the pink.”
Now is the time to be thinking about taxes and for you and your Financial Advisor to perform a fiscal
physical on your portfolio. To help you get started, Wells Fargo Advisors offers these useful pointers.

Begin by checking your numbers
Your doctor will often check a variety of numbers (blood pressure, cholesterol, blood sugar) to help him
or her assess your overall health. Similarly, there are important numbers you and your Financial Advisor
can evaluate to find answers to these and other important questions.
What’s your tax bracket? tax time, there are advantages to having
less taxable income. Given the choice,
When it comes to tax planning and your
would you rather have your last dollar
investments, the obvious place to begin
of income taxed at 35% (today’s highest
is by understanding your tax bracket.
rate) or 10%? That’s why it’s wise to
On one hand, it’s relatively easy to
maximize your deductions, employ
comprehend – the greater your income,
tax-deferred accounts and use other
the higher your tax bracket. However,
strategies to help reduce your taxable
tax brackets are “marginal,” which
income. Doing so will help keep you
makes things more complicated.
in the lowest possible bracket.
If you’re in the 33% bracket, for example,
Along with determining at what rate
that’s the tax rate on your last dollar of
your ordinary income (earnings, interest,
income in 2009. If you’re single, your
etc.) is taxed, your tax bracket also
first $8,350 ($16,700 if you’re married
dictates your capital gains tax rates.
and filing jointly), after adjustments,
Capital gains you received on assets you
deductions and exemptions, will be
sold after owning them for one year or
taxed at just 10%. The next $25,600
less (short-term gains) are taxed the
($51,200 if married and filing jointly)
same as ordinary income. Gains on
will be taxed at 15%. As you move up
assets you held longer than one year
through the brackets, your additional
(long-term gains) are federal-tax-free
income will be taxed at higher and
this year for the portion of your gains
higher rates.
that falls within the 10% or 15% tax
Most of us would prefer to earn more brackets. Gains that fall above these
money rather than less. However, come brackets will be taxed at 15%.
What carries over from the 2009 stimulus?
The 2009 economic stimulus package – formally known as the American Recovery
and Reinvestment Act of 2009 (ARRA) – included provisions that may affect your
2009 and, perhaps, 2010 taxes. Key points you’ll want to make note of include:
• The “Making Work Pay” credit may have affected your federal income tax
withholding earlier in 2009. You’ll want to review your total withholding and
perhaps adjust it so you don’t find yourself with a larger-than-expected tax bill
in April. This credit will continue into 2010.
• If you are taking 529 plan withdrawals, note that the “qualified expenses” definition
was expanded only for 2009 and 2010 to include computers, related equipment
and Internet access expenses. Also remember that in 2010 you will be allowed to
make only one change to your investment strategy (two changes are allowed
for 2009).
• First-time homebuyers may qualify to receive an $8,000 tax credit for homes
purchased after Dec. 31, 2008, and before Dec. 1, 2009.
2 Now is the time for a fiscal physical

Our Envision planning process can help you assess your financial well-being
Employing Wells Fargo Advisors’ Envision process is an excellent way to help ensure
you’re working toward your retirement goals. Unlike other investment-planning tools,
an Envision investment plan can help you uncover goals, determine which are the
most (and least) important and track your progress toward them. And it gives you
the flexibility to alter your plan to account for changes in your life or the market.
One of Envision’s most useful features is a personalized benchmark that lets you
track your investments’ performance toward your goals as often as you want, be that
annually, monthly or weekly.
Checking your benchmark’s status is an excellent place to begin examining your
portfolio. If your benchmark is within the “Target Zone,” it appears your investments
have you on the road toward reaching your long-term goals. However, market activity
during the last couple of years may have pushed your benchmark below the Target
Zone. If that’s the case, your Financial Advisor can work with you to adjust your plan
to help get your benchmark back into the zone. Doing so may require you to alter
your goals or change your asset allocation.
Contact your Financial Advisor about reviewing and, if necessary, updating your
Envision profile. If you don’t have a plan, he or she can discuss Envision’s many
benefits with you and help start the process.
Qualified dividends, as defined by deductions to pay little or no federal • Interest from certain private activity
the IRS, are taxed the same way as income tax. The intent was to require municipal bonds (AMT bonds)
long-term capital gains. Nonqualified these individuals to pay at least a • Large capital gains
dividends, on the other hand, are taxed minimum amount of tax. However,
• High state and local taxes
just like ordinary income. For more the AMT exemption (the amount a
• Exercised incentive stock options
information on the difference between taxpayer’s income must exceed before
(ISOs)
qualified and nonqualified dividends, AMT may kick in) was not indexed for
contact your Financial Advisor. inflation, so each year more and more Finding a long-term solution to the
middle-class families are getting hit AMT problem has proven elusive;*
Currently, the provisions in the 2001
with the AMT. however, some relief may be available
tax-reform legislation that reduced the
for taxpayers who were subject to AMT
income, capital gains and dividend tax For 2009, the exemption is $46,700
in the past. In tax years 2009 through
rates are scheduled to “sunset” (expire) for single filers or $70,950 for married
2012, these taxpayers may be able to get
after 2010. However, at press time couples who file a joint return. The AMT
a partial refund if they have unused
Congress was debating a number of calculation is separate from the regular
long-term AMT credits – credits carried
different ideas (see sidebar on page 4) taxable-income calculation. As a result,
forward for three years or longer.
that could bring more changes. your chances of paying the AMT may
Typically, these credits are difficult to
increase if you have:
use up, even though they can be carried
Are you subject to the • Several dependents
forward indefinitely.
alternative minimum tax? • Interest deductions from home equity
Under current rules, a taxpayer can
Congress initiated the alternative loans or refinanced mortgages that
claim a refund for 2009 for AMT credits
minimum tax (AMT) 40 years ago to were not used to buy, build or improve
generated in 2005 or earlier. The refund
affect wealthy individuals who used your home
for any given year is limited to 50%
various exemptions, exclusions and
*Tax legislation passed in 2001, 2004, 2006, 2007 and 2008 included temporary AMT fixes.
Now is the time for a fiscal physical 3

of the long-term unused credit or the Will your heirs owe to $3.5 million for 2009. The tax is
amount of AMT refundable credit estate taxes? scheduled to be repealed for 2010 only.
allowed in the preceding year, whichever
The estate tax has long been a political Currently, the estate tax is scheduled
is greater; however, the refund cannot
football in Washington. Some see it as to return in 2011 with a $1 million
be more than the long-term unused
unfair double taxation, while others exclusion and 55% maximum rate.
credit amount.
defend it. The 2001 tax-reform However, Congress is debating
legislation gradually reduced the top alternative plans (see sidebar below),
Are you subject to the so it’s important to keep in touch with
federal-estate-tax rate from 55% to 45%,
required distribution rules? and the applicable exclusion — the value your Financial Advisor regarding
If you’re age 70½ or older or will turn an estate must exceed before the tax updates as they occur. The bottom line
70½ by the end of the year,* you would kicks in — was increased from $675,000 is that it’s possible your family may
normally be obligated to take required have to deal with estate-tax issues.
minimum distributions (RMDs) from
your 401(k), 403(b) and similar qualified
plans, as well as from your traditional What’s cooking in Congress?
IRAs. Taking your RMDs in a timely At press time, Congress was debating a number of tax-related
fashion is an important element of proposals. Of course, what will actually be passed is anybody’s
managing your tax-deferred savings, guess. However, keep in mind that many major provisions of the
and failure to do so can result in a wide-ranging 2001 tax-reform legislation are scheduled to “sunset”
50% IRS penalty. For 2009, however, (expire) at the end of 2010 – so tax-law changes will be coming
the RMD requirements have been whether or not Congress enacts new legislation.
suspended. As a result, you don’t have
Among the proposals being discussed are the following:
to take withdrawals from these accounts
for 2009 unless you want to. • Income tax rates. The 36% and 39.6% brackets that existed prior to the 2001 legislation
may return. (Currently, this will occur automatically in 2011.) If this comes to pass,
The RMD requirements are likely higher-income families may find tax-free municipal bonds more attractive. They could also
to return in 2010. Assuming they do, be motivated to increase their qualified retirement plan [401(k), 403(b), etc.] contributions.
you may want to take advantage of a
• Capital gains and dividend tax rates. If Congress does nothing, long-term capital gains
qualified charitable distribution (QCD)
tax rates for those in the 25% and higher brackets will increase from 15% to 20% in 2011.
in 2009 to help reduce the amount
For those in the 15% bracket (the 10% bracket is scheduled to disappear), the rate will
you’ll have to withdraw in the future. By
increase from 0% to 10%. Dividends – both qualified and nonqualified – will be taxed the
taking a QCD, you’ll reduce the account
same way as ordinary income. Special 8% and 18% capital gains tax rates will once again
balance on which future years’ RMDs
apply to certain holdings purchased after Jan. 1, 2001, and held for five years or longer.
will be calculated. For more information,
see “Caring for others” on page 9. Congress is considering a proposal that would tax long-term gains and qualified dividends
at 20% for those in the two highest brackets, 15% for those in the middle brackets and 0%
for those in the lowest brackets.
• Deductions. A proposal has been made to cap itemized tax deductions for those in the
two highest tax brackets.
• Estate taxes. Unless there’s further legislative action, the estate tax will return in 2011
(after being repealed in 2010) with a $1 million exclusion – the value an estate must exceed
before the tax kicks in – and a 55% top rate. Congress is debating an extension of the 2009
rates (a 45% maximum) and a $3.5 million exclusion.
*If you’re 70½ or older and still working, distributions from your current employer’s qualified plan are not required.
4 Now is the time for a fiscal physical

An apple a day …
Like eating an apple a day, there are a number of preventive measures you can take to help ensure your
financial health.
Caring for your Whether you put your money into a
retirement savings qualified plan or IRA or both, you may
end up with more when you retire if
There are a variety of strategies that
you increase your contributions while
may help ensure your financial fitness
the market is down. We all know about
in retirement.
buying low and selling high, but it’s
Contribute to your seldom easy to do. If the market recovers
employer’s qualified plan in value – and there’s no guarantee that
For 2009, you can contribute up to it will – you may end up with more in
$16,500 ($22,000 if you’re 50 or older) retirement than you would have had
to a 401(k) or 403(b). If your employer if the market had never dipped. A key
offers a SIMPLE IRA or SIMPLE 401(k) to your retirement security may be to
plan, you can contribute up to $11,500 continue, and perhaps increase, your
($14,000 if you’re 50 or older in 2009). contributions while the market is down.
Given the questionable future of Social
Review your asset allocation
Security, you should take advantage of
Given the turmoil in the markets during
these generous limits. Although raises
the last couple of years, chances are
and bonuses may be hard to come by
your asset allocation has changed
these days, if you receive one, consider
considerably, unless you’ve rebalanced
contributing a portion of it to your
it. You and your Financial Advisor can
qualified retirement plan to help ensure
review your portfolio and make any
your financial security in retirement.
necessary adjustments to help you keep
Add to your IRA working toward your long-term goals.
If you contribute to a traditional IRA,
Understand the Roth IRA
the amount you deposit may be tax-
conversion rules beginning in 2010
deductible, depending on whether you
Although traditional IRAs offer the
(and/or your spouse) are covered by an
potential for tax-deferred growth, any
employer-sponsored retirement plan.
growth is subject to ordinary income
If you are covered, your contribution’s
taxes upon distribution. Roth IRAs,
deductibility will depend on your filing
however, offer the potential for tax-free
status and modified adjusted gross
growth and distributions. Beginning in
income (MAGI). Keep in mind that
2010, everyone – regardless of income
your IRA offers a broader array of
and filing status – will be eligible to
investments to choose from than
convert traditional IRAs to Roth IRAs.*
a 401(k).
This change may create an especially
attractive saving opportunity for you
today if:
*Before Jan. 1, 2010, you cannot convert to a Roth IRA if your MAGI is greater than $100,000, or if you are married but file separate federal tax returns. SIMPLE IRAs
are not eligible to convert within the first two years of participation.
Now is the time for a fiscal physical 5

• You want to contribute to a Roth IRA,
but your income disqualifies you
• Your income and employer-plan
status make you ineligible to deduct
traditional-IRA contributions
• You have no traditional IRAs or the
traditional IRAs you have consist
only, or mostly, of nondeductible
contributions and earnings
Here’s how the strategy works for
those who fit the criteria: Make a
nondeductible contribution to a
traditional IRA for 2009 and report
it to the IRS on Form 8606. In 2010,
convert your traditional IRA balance
to a Roth IRA and pay taxes only on
any growth you’ve experienced on
your contribution.
In general, this strategy will not work
as well if you currently have only pretax
contributions and earnings in traditional
IRAs, or if you expect to have pretax
contributions and/or rollovers before
the end of the conversion year. In those
cases, the after-tax percentage will have
been diluted. A prorated calculation
Review your beneficiary designations probably out-of-date. To help ensure
based on the balance of all of your
Although having up-to-date beneficiary your estate plan works as intended,
traditional IRAs at year-end will be
designations will not contribute to your you need to review your beneficiary
done to determine the amount of the
financial security, it can help your peace designations regularly.
conversion that represents amounts
of mind.
that have already been taxed. You
will owe taxes on the amounts not The beneficiary designations on your Examine the big picture
previously taxed. 401(k) or other retirement plan with It’s important to look at the big picture
your current and past employers and and address some of the same issues as
In general, this prorata calculation
on your IRAs will supersede whatever above regarding all of your investments,
of after-tax amounts will not apply to
you’ve stipulated in any will or trust not just your retirement savings. You
after-tax amounts converted directly
included in your estate plan. As a and your Financial Advisor should
from a qualified plan, such as a 401(k),
result, these assets may not be handled assess the diversification of your entire
to a Roth IRA. If you have after-tax
according to your wishes. If a birth, portfolio and whether you’re comfortable
amounts in your qualified plan, you
death, marriage, divorce or other with your current asset allocation’s risk
might want to convert these directly
significant event has occurred since level and return potential.
to a Roth IRA, rather than first rolling
you made these designations, they are
them into a traditional IRA.
6 Now is the time for a fiscal physical

Some benefits may require additional preventive care
Many employers have special benefits they offer only to certain personnel. If you are one of these
individuals, you need to take more preventive care.
Exercising certain stock options can have tax implications
If you exercise nonqualified stock options (NSOs) this year, the spread between the exercise price and the
stock’s market price on the date of exercise will be taxed as ordinary income and treated as compensation
on your return. If you sell the stock you receive from the exercise within one year, any gain you enjoy above
the stock’s market price on the exercise date will be a short-term capital gain and taxed at ordinary rates. If you wait to sell the
stock until you’ve held it longer than one year and the selling price is higher than the market price on the exercise date, the
difference will be taxed as a long-term gain.
Before you exercise your NSOs, talk with your Financial Advisor and tax advisor about the tax implications. They can work with
you to develop an exercise strategy to help you avoid unnecessarily boosting your tax liability as a result of exercising a large
number of options in a single year.
Think hard about participating in a nonqualified deferred compensation plan
If you’re eligible to participate in a nonqualified deferred compensation (NQDC) program, you will need to decide before year-end
whether or not you want to defer a portion of your salary into the plan for 2010. The dates for electing salary deferrals may differ
from those for making bonus deferrals; see your employee-benefits administrator for details about your particular plan.
Before you decide to participate, consider your employer’s financial soundness. All funds contributed to NQDCs (both by you
and your employer) are always at risk. If your employer is facing financial difficulties and eventually fails, the NQDC assets could
be subject to claims from the company’s creditors. Rather than participating, you may want to take the amount you were planning
to contribute and use it to bolster your cash reserves in case you become unemployed.
In your review, look in particular for Using losses to your advantage In addition to using losses to offset
areas where you may have too much or realized gains, you can use up to $3,000
Although the market may be performing
too little of a single investment. If you of excess net capital losses to reduce
better than it was, you might still be
have a significant portion of your wealth your ordinary income (e.g., wages,
holding investments you could sell at
in one position, you are probably interest, dividends, IRA distributions)
a loss. Now is a good time to consider
exposing yourself to unnecessary risk. in a single year. After the offset, you
selling some of these investments;
Selling some of that position and can carry forward any additional capital
however, you must do so before year-end
diversifying your holdings is just one losses and use them to offset capital
to claim any losses on your 2009
way to address this problem. Contact gains and up to $3,000 in ordinary
income tax return.
your Financial Advisor to discuss other income in subsequent years. So if
strategies that may be suitable. You can use capital losses to offset you have capital losses lingering
capital gains in order to reduce your tax from previous years (often called “loss
On the other hand, if you have
burden on any appreciated securities carryforwards”), you may be able to
fragmentary positions that contribute
you sell. For example, if you incurred use them to offset gains and/or income
little to your portfolio’s overall
$2,500 in long-term capital losses and received in 2009.
performance, you may want to
also had a $2,500 long-term capital
prune them.
gain, the two amounts would offset each
other, and you would not incur a tax
liability on those transactions.
Now is the time for a fiscal physical 7

Offsetting gains and losses
Suppose that in 2009 an investor has:
$ 6,000 short-term capital gain
4,000 short-term capital loss
4,000 long-term capital gain
14,000 long-term capital loss
The result:
Short-term capital gain $6,000
Short-term capital loss (4,000)
Net short-term capital gain $2,000
Long-term capital gain $ 4,000
Long-term capital loss (14,000)
Net long-term capital loss ($10,000)
period of 61 calendar days). This rule buy additional shares on Nov. 30, you
Net long-term capital loss ($8,000) can sell your original shares for a tax
ensures you take the risk of being out
of the market in that security, or you loss on Dec. 31, 2009, (creating a 2009
Offset for 2009 ordinary
cannot claim a tax loss. (Note: If loss) and not produce a wash sale.
income $3,000
you violate the wash sale rule, your
Carryforward to offset disallowed loss is added to the cost basis Be careful when selling shares
future years’ gains and/or of the repurchased shares, so the loss is Whenever you sell securities, you can
ordinary income $5,000 deferred rather than eliminated.) specify the shares you intend to sell
to help reduce capital gains taxes. For
Many investors take advantage of a
example, if you hold 1,200 shares of
If you plan to reduce your tax liability by strategy called “doubling up.” That is,
a certain stock purchased at various
taking losses to offset gains, make sure before selling your loss position, you
prices and want to sell 200, tell your
you understand the wash sale rule. It purchase additional shares of the
Financial Advisor the original purchase
comes into play when your goal is to security you want to own. You then wait
date of the shares you intend to sell. Be
maintain your position in a security, until 31 calendar days after the trade
sure the trade confirmation indicates the
but you also want to recognize a current date to sell your original position, thus
lot you chose to sell. Otherwise, the IRS
capital loss in that security. To do so, creating the loss while maintaining a
will assume you are using the “first-in,
you might have considered selling the position in that security.
first-out” method, which automatically
position (realizing the capital loss) and To avoid violating the wash sale rule results in the sale of the shares you’ve
then buying back the same security. and still claim a loss on your 2009 held the longest, which may also be the
But that’s where things get tricky. return, remember that Nov. 30, 2009, shares that have appreciated the most
The wash sale rule disallows a tax loss is the last day to purchase additional and will create the largest capital-gains
if you buy the same or a substantially shares in a security if you want to double tax liability.
identical security within 30 calendar up and subsequently sell the shares you
days before or after the trade date (a currently own. This means that if you
8 Now is the time for a fiscal physical

Caring for others
In addition to making sure that you’re financially healthy, you may also want to help take care of
your family and the community.
If you’re considering gifting to family gains taxes. Doing so requires keeping
members this year, there are some his or her taxable income (including
important factors to keep in mind: the gain) for 2009 from exceeding the
following amounts:
For those in the 10% and 15% brackets
(think adult children and grandchildren), • $33,950 if single or married filing
the long-term capital gains rate is 0%. separately
Obviously, this creates a prime • $67,900 if married filing jointly
opportunity for you to gift appreciated • $45,500 if head of household
securities to these individuals for them
If, for example, the individual to whom
to sell, but there are potential pitfalls.
you want to make the gift is single
Before you gift securities or mutual fund and has $32,000 in taxable income,
shares to a young child or grandchild a $3,000 capital gain would push him
whose income may qualify him or her or her out of the 15% tax bracket. As a
for the 0% capital gains tax rate, you result, the part of the gain above the
need to be aware of the “kiddie tax” $33,950 would be taxed at the 15% rate.
rules’ potential implications. These rules
stipulate that any unearned income in Qualified charitable distributions
excess of $1,900 in 2009 (assuming no make donating attractive
earned income) for a child subject to If you’re age 70½ or older and want to
these rules is taxed at the child’s rate or contribute to charitable causes, you may
his or her parents’ top marginal rate, be interested in taking advantage of a
whichever is higher. qualified charitable distribution (QCD).
With a QCD, money goes directly from
These rules apply until the year a child
your IRA to your choice of charities with
reaches age 19, or age 24 if he or she is a
no federal tax consequences.
full-time student. An exception allows a
child age 18 or older to avoid the kiddie Rather than making a QCD, you could
tax if his or her earned income provides withdraw the money and then contribute
more than one-half of his or her support. it to a charity. However, if you did so, the
withdrawal would be taxable. Of course,
Clearly, there may be little advantage to
you could then deduct it if you’re able
gifting an asset if the subsequent sale
to itemize your deductions and are not
would result in the child being subject
subject to a limitation based on income,
to these rules by having more than
phaseouts, etc. What makes a QCD
$1,900 in unearned income – especially
attractive is that the money goes directly
if the parents are in one of the higher
from your IRA to the charity, and it lets
tax brackets (33% or 35%).
you take a tax-free withdrawal for charity
If the child or grandchild is no longer whether or not you can itemize.
subject to the kiddie tax, he or she needs
QCDs are limited to $100,000 per
to avoid making a sale that will push
taxpayer. There are additional rules,
him or her out of the 15% tax bracket if
including restrictions on the charities
he or she is attempting to avoid capital
to which you can contribute.
Now is the time for a fiscal physical 9

Being unemployed calls for emergency care
If you’re one of the millions of Americans who’ve lost their jobs recently, you have a lot on your mind.
However, there may be issues that you’re not considering that could dramatically affect your family’s finances.
First, if you haven’t thought about what human resources department to manage
you want to do with your account in your the assets and arrange withdrawals. In
former employer’s 401(k) or similar many cases, rolling the assets to an IRA
plan, do so. You can leave the assets will simplify this process, broaden the
where they are, but is that what you range of potential investment choices
want for the long term? Having assets and provide greater control than dealing
in a former employer’s plan can be with a former employer with whom the
inconvenient, and it limits you to the beneficiary is probably unfamiliar.
investments the company selected.
Second, if you need cash and are
Rolling these assets into an IRA will
thinking about tapping your retirement
make managing them as easy as a call
plan balance or IRA, keep in mind that
to your Financial Advisor. And you’ll
you could be setting yourself up to owe
be able to choose from a much broader
additional income taxes and, if you’re
investment selection.*
younger than age 59½, an IRS early
In addition, if you roll over assets from withdrawal penalty that you’ll need to
401(k) and similar plans into an IRA, plan for.†
you can make it easier for your heirs
In addition, before taking money from
to “stretch” these assets over multiple
your retirement savings, keep in mind
generations. Beginning in 2010,
that doing so could jeopardize your
nonspousal beneficiaries of qualified
financial security in retirement. A better
retirement plans, such as a 401(k) or
strategy is to review your spending
profit sharing plan, must be allowed to
and cut out any luxuries to see if you
make a direct rollover into an inherited
can get by without raiding your
IRA for any amounts eligible to roll over.
retirement savings.
However, if he or she doesn’t transfer the
assets in a timely manner (by the end Third, if you hold stock options or
of the year following the year of death), restricted stock, you need to ask about
his or her distribution options will be your unvested benefits. It’s possible that
limited to those allowed in the qualified they became vested on the day you
plan. As a result, the beneficiary may were displaced.
not be permitted to “stretch out”
Also learn about your vested stock
distributions over his or her life
options. It’s possible that their
expectancy, which he or she may be
expiration date was accelerated, which
able to do with an inherited IRA.
means you have less time left before you
If a beneficiary doesn’t transfer the must exercise them. As a result, you
assets to an inherited IRA, he or she will may have to come up with the cash to
need to keep in contact with your former exercise, and recognize taxable income,
employer and deal with the company’s sooner than you had planned. Keep in
*While you are permitted to take loans from your 401(k) plan, this is not possible with an IRA, and depending on the investments used to fund the IRA, charges and
expenses could be higher or lower than those you would incur inside your 401(k) plan.
†
If you need to tap your qualified plan assets and are older than age 55 in the year you separate from service, leave as much as you will need to use in the employer’s
plan to avoid the tax penalty for early IRA withdrawals.
10 Now is the time for a fiscal physical

touch with your former employer’s • To make a hardship withdrawal for • If you take a hardship withdrawal, you
benefits department and make sure they severe financial distress, you must will be forbidden from making salary-
have your current address so you receive certify that you have no other recourse, deferral contributions to any of your
timely notifications and deadlines. including taking out a loan. employer’s qualified retirement plans
Finally, if you’re receiving • A hardship withdrawal may be made to: for the following six months.
unemployment benefits, you need – Pay for your, your spouse’s or Another alternative may be to borrow
to be concerned about their tax your dependents’ un-reimbursed money from your 401(k) and pay it
implications. These benefits are medical expenses, or tuition and back over the time period dictated in
considered taxable income, but there’s related educational expenses the loan agreement. However, as stated
typically no withholding – which could above, pillaging your retirement savings
– Go toward the purchase of
lead to an unpleasant surprise come should be done only as a last resort.
your principal residence
April 15. You need to set aside money Seek other solutions before using
– Prevent your eviction or the
to cover the potential tax liability for either of these alternatives.
foreclosure on your primary
these benefits. The good news is that
residence
$2,400 in unemployment benefits is
federal-tax-free for 2009. • A hardship withdrawal cannot be
rolled over.
Have a job but need extra cash?
• Hardship withdrawals are subject to
If you’re still employed but need cash, the IRS 10% early withdrawal penalty
you may want to see whether your as well as ordinary income taxes.
employer has implemented a hardship- (A hardship withdrawal for medical
withdrawal provision in its retirement expenses may qualify for an exception
plan. Although this alternative may to the penalty.)
seem attractive, there are a number
of factors to consider:
The Wells Fargo Advisors commitment to our clients is three-fold:
We will honor our relationship with you. When you work with a Financial Advisor
from Wells Fargo Advisors, you have someone who takes the time to listen and
understand your needs, helps you clarify your goals, and takes seriously the safety
and security of your money and investments.
We will be fully invested in your success. Your Financial Advisor can help you stay
on track to meet your goals through intelligent financial solutions, in-depth analysis
of your investments and regular feedback on your progress.
We will be with you every step of the way. Your needs and goals will change over time.
That’s why your Financial Advisor will be there to provide ongoing advice – along with
the exceptional service you deserve – through the ups and downs of markets and
economic cycles.
Now is the time for a fiscal physical 11

Important deadlines for:
2009 2010
October 1 January 15
Establishing a SIMPLE IRA for 2009 Paying fourth-quarter 2009 federal individual estimated taxes
Establishing a safe harbor 401(k) plan for 2009 January 26
October 15 Buying in to close a 2009 short-against-the-box position
Filing 2008 individual tax returns with automatic extensions (regular-way settlement)
Recharacterizing a 2008 traditional IRA contribution to a March 15
Roth, or vice versa, or recharacterizing a 2008 conversion Filing calendar-year corporate tax returns (excluding extensions)
(only if you received an extension or filed a timely return for 2008)
Establishing and funding SEP plans for corporations for 2009
Removing a 2008 excess IRA contribution without a 6% excise tax (filing an extension extends the deadline)
(only if you received an extension or filed a timely return for 2008)
Funding employer contributions for retirement plans for corporations
November 30 (filing an extension extends the deadline)
Doubling up for 2009 April 15
December 28 Filing 2009 individual federal-income-tax returns
Buying in to close a short position in a stock at a loss for 2009 (or filing an extension)
Paying first-quarter 2010 federal individual estimated taxes
December 31
Opening and making 2009 contributions to traditional and
Selling a security for a 2009 gain or loss
Roth IRAs and Education Savings Accounts
(tax year determined by the trade date)
Establishing and funding SEP plans for sole proprietors and
Converting a traditional IRA to a Roth IRA for 2009
partnerships for 2009 (filing an extension extends the deadline)
Establishing most qualified retirement plans for businesses
Funding employer contributions for retirement plans for sole
(calendar-year taxpayers)
proprietorships and partnerships
Selling shares acquired through the 2009 exercise of (filing an extension extends the deadline)
incentive stock options (ISOs) in disqualifying disposition to
limit alternative minimum tax (AMT) preference amounts* June 15
Making gifts for the 2009 tax year Paying second-quarter federal individual estimated taxes
(individual gift checks must be cashed; charitable gift checks Sept. 15
must be postmarked)
Paying third-quarter federal individual estimated taxes
Completing 529 plan contributions for 2009
(for federal-gift-tax purposes – state-tax-deduction deadlines may October 1
vary; begin processing by mid-December to meet this deadline) Establishing a SIMPLE IRA for 2010
*Consult with your tax advisor to determine this transaction’s suitability Establishing a safe harbor 401(k) plan for 2010
for you.
October 15
Filing 2009 individual federal-income-tax returns with
automatic extensions
Recharacterizing a 2009 traditional IRA contribution to a
Roth, or vice versa, or recharacterizing a 2009 conversion
(only if you received an extension or filed a timely return for 2009)
Removing a 2009 excess IRA contribution without a 6% excise tax
(only if you received an extension or filed a timely return for 2009)
November 30
Doubling up for 2010
Wells Fargo Advisors designed this publication to provide accurate and authoritative information on the subject matter covered. Wells Fargo Advisors makes it available with the understanding that the firm does not render legal,
accounting or tax-preparation services. For tax or legal advice, seek the services of competent tax or legal professionals.
Wells Fargo Advisors believes investment decisions should be based on investment merit, not solely on tax considerations. However, the effects of taxes are critical in achieving a desired after-tax investment return. Wells Fargo Advisors
has based the information provided on internal and external sources that the firm considers reliable; however, Wells Fargo Advisors does not guarantee the information’s accuracy.
Direct specific questions relating to your tax situation to your tax advisor.
Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value
Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company.
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