Who to Ask When You Want Advice on Thrifts

Q: Can you provide the names of services that rank savings institutions according to the financial safety they afford their depositors? --N.V.W.

A: There are several sources of reliable information about banks and savings institutions. However, some of this information is probably too detailed for the average depositor, and most of it may be out of date by the time it’s published. It’s important to remember that thrifts rarely get into deep financial trouble overnight.

By reading the financial press you should be well warned in advance of any problems that could force a thrift into insolvency and takeover by federal authorities. Still, depositors should carefully evaluate the safety of their thrift before investing in any long-term certificates of deposit or other items that carry a heavy interest penalty for early withdrawal. Further, for maximum security, depositors should pay close attention to the Federal Insurance Deposit Corp. account limits for full coverage on deposits.

Here’s a rundown of some of the best information sources on thrifts.

* Veribanc in Boston provides reports of its own safety rankings of the 29,000 banks, savings and loan associations and credit unions in the United States. These reports, which are provided over the phone and then in a follow-up written report, cost $10 for the first institution and $5 for each additional one. Veribanc also publishes a Blue Ribbon Bank Report that ranks banks in different geographical regions of the country according to their safety. This report is $35. Finally, Veribanc publishes a Short Form Report, individual studies of each of the nation’s 29,000 banks, savings and loan associations and credit unions reports. These are $25 each.

The reports may be ordered by calling 1-800-442-2657 from 8:30 a.m. to 7 p.m. Monday through Thursday and from 8:30 a.m. to 5:30 p.m. Friday.

* Bauer Financial Reports sells lists of banks and savings and loan associations for each of the 50 states, detailing the thrifts’ assets, liabilities and the tangible capital ratio--one of the three key regulatory benchmarks used to evaluate the financial safety of these institutions. The lists sell for $29 per state, except Texas and Illinois, which cost $39 each. To order call 1-800-388-6686.

* IDC Financial Publishing publishes quarterly and annual reports evaluating and ranking the nation’s banks. The cost is $125 for a single quarterly report and $349 for an entire year’s subscription. To order call 1-800-525-5457. * Sheshunoff Information Services rates banks each quarter and publishes reports on individual banks as well as industrywide lists detailing every institution in the nation. A complete report on an individual bank costs $105; a shorter capsule report is just $25. Industrywide assessments are $105 per quarter and $315 for the entire year. To order call 1-800-456-2340.

Two Separate IRAs Cannot Be Combined

Q: My wife and I have separate Individual Retirement Accounts, neither of which is very large. Would it be possible to combine these accounts to simplify our bookkeeping and reduce the amount we have to pay in annual charges? In some cases, combining two smaller accounts could also allow a taxpayer to take advantage of investment opportunities that require large amounts. --C.F.

A: Although the reasons you detail might make a powerful case for co-mingling of IRAs, it is strictly forbidden by law. IRA accounts, as their very name implies, are meant for just a single person. They must remain the individual’s separate account.

Looking to Reinvest Home Sales Profit

Q: I sold my house in July, 1991, and used the profits to start a small business. Although my business is growing, it is nowhere near the level required to save for a down payment or qualify for the purchase of a replacement home. Meanwhile, the 24-month period for reinvestment of home sale profits is ticking away. I doubt we will have the money we need by next July. Is there any way we can get an extension of the 24-month rule? --B.G.

A: Based on what you have told us of your circumstances, it doesn’t appear that you would qualify for the three narrow exceptions to the 24-month reinvestment rule. The IRS will extend the period for members of the military who are sent overseas as well as for taxpayers who go on active military duty for more than 90 days during their 24-month replacement period. In addition, workers who are sent abroad before the expiration of the 24-month period are entitled to an extension. Beyond these tiny loopholes, the IRS offers nothing to ease the burden you face except the reminder that you should be sure to include the cost of any and all capital improvements you made to your home to reduce the taxable gain you will have to report--and pay taxes on.

Widow Has to Make a Choice of Benefits

Q: If a widow who is collecting Social Security benefits on her deceased husband’s account remarries, does she lose those benefits? --R.B.

A: It depends on the widow’s age. If she remarries after turning age 60--or age 50 if she is disabled--her widow’s benefits would continue. After a year of her remarriage, and assuming that her new husband is collecting Social Security, she could then choose between keeping her widow’s benefits or switching to spousal benefits on her husband’s account. She would always be entitled to the higher of the two choices. Although you didn’t ask, we can tell you that if this woman should be widowed a second time, and her marriage has lasted at least nine months, she is entitled to choose between widow’s benefits on either of her two husband’s accounts.