| Mutual funds are taced at long term
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| | distributions (distributed usually every
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| capital gains rate right? Wrong. There
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| | year), long term capital gains
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| seems to be some confusion to how mutual
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| | (distributed usually every year) and then
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| funds are taxed. What you need to know is
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| | when you sell the fund you will have
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| there are distributions on mutual funds
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| | another long term capital gain (I am
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| that are taxable. These are called annual
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| | assuming you made money with the fund). I
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| distributions and are made in late
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| | did not mention dividend tax because not
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| November and early December. These
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| | all funds have dividends, that would make
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| distributions, if the fund has any gains,
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| | 4 taxes on mutual funds.With portfolio
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| are taxed at either ordinary income or
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| | turnover rates at about 75% we are
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| long term capital gains tax.This is where
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| | finding that the distributions are
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| the anti-annuity crowd usually steps in
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| | becoming more short term than long term.
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| and says mutual fund tax treatment is so
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| | This means higher taxes on these
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| much better than variable annuities, is
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| | distributions. These distributions can
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| this true? It is not. You have 3 taxes
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| | continue even if the mutual fund goes
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| with mutual funds, the short term
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| | down.
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