Mutual Fund Distributions
Feb 5, 2024
This time of year as you prepare for taxes, you might glance at documents and see some capital gains taxes you may have overlooked.
Many mutual funds in December pay shareholders capital gains distributions that they have accumulated throughout the year.1
Typically, mutual fund companies start making estimates about distributions as early as November and most finalize the payment by mid-December. Unfortunately for us, this can cause undesirable tax consequences.
It’s important to remember that if your mutual fund is in a tax-deferred account—and you are reinvesting distributions—the potential distributions may be a non-event at this time. But you may owe taxes when you begin to sell your holdings.
If your mutual fund is in a taxable account, you may owe 2022 taxes on the distributions. It doesn’t matter whether you reinvested the distribution or accepted payment.
At Epic Capital, we take tax planning very seriously. Tax advantaged investments, tax-deferred growth, and the strategic placement of assets to minimize your yearly tax bill are just some of the actionable strategies that can be employed within the management of your wealth. We advise you on which assets should be utilized first in retirement, when you should harvest a tax-loss or take a capital gain, the tax implications for holding particular investments, and the list goes on.
Most of the larger mutual funds companies have posted information on their websites regarding year-end distributions. But the estimates can be confusing, so please feel free to contact us, we may be able to provide some guidance.
Remember, this is for informational purposes only and is not a replacement for real-life advice. Mutual fund distributions may only be one part of your overall tax situation, so make sure to consult your tax, legal, or accounting professional before modifying your strategy.
For more insights and resources, be sure to sign up for our Weekly Market Commentary. Follow our YouTube channel where we regularly post our Epic Market Minute videos. Follow us on LinkedIn, or like us on Facebook. And as always, please don’t hesitate to reach out to a dedicated service professional at Epic Capital.
Tags: Certified Financial Planner Charlotte NC, financial advisor charlotte nc, Investment Planning, Investment Portfolio, Tax Advantages, tax guide, taxes
More Insights
Apr 19, 2024
Ever hear of critical illness insurance? This isn’t standard-issue disability insurance, but a cousin of sorts. With people living longer, it is a risk management option entering more people’s lives.
Apr 17, 2024
Following Iran’s missile and drone strikes on Israel over the weekend and the apparent escalation likely in any Israeli response, stocks fell sharply during Monday’s trading session. We examine the latest developments in the Middle East conflict, how stocks have reacted historically to geopolitical events, and the possible impact on markets moving forward.
Apr 15, 2024
Did you buy U.S. Savings Bonds decades ago? Or did your parents or grandparents purchase them for you? If they’re collecting dust in a drawer, you may want to take a look at them to see if any of your bonds have matured. If your bonds have matured, that means they are no longer earning … Continue reading “How US Savings Bonds Work”
Apr 12, 2024
In baseball, three strikes and you’re out. With inflation, a third straight month of hotter-than-expected consumer inflation data nearly ruled out probabilities for a June rate cut yesterday (now less than a 25% chance, according to fed funds futures). The core Consumer Price Index (CPI) rose 0.4% in March, or 3.8% when compared on a … Continue reading “Market Update – Assessing the Prospect for a Pullback”
Apr 10, 2024
You know how important it is to plan for your retirement, but where do you begin? One of your first steps should be to estimate how much income you’ll need to fund your retirement. That’s not as easy as it sounds, because retirement planning is not an exact science. Your specific needs depend on your … Continue reading “Estimating Your Retirement Income Needs”
Top of Page
Services
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >
Find us on:
Copyright © 2024 Epic Capital Wealth Management. All Rights Reserved.
Securities offered through LPL Financial. Member FINRA/SIPC.
The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: CA, CO, DC, DE, FL, GA, IN, LA, MD, MO, MS, NC, NJ, NY, PA, SC, TN, TX, VA, VT, WA.