2019 Year-End Distributions

wanaberetiree said:
To fight against VG Wellington high CC and gains I sold it and replaced with index VTI + bonds, same performance low distributions
Click to expand...

I would like to do something similar but the challenge for me is that my VG Wellington holdings in my taxable accounts are now comprised of almost 50% capital gains. Cashing that out in order to convert to another fund would result in some really high numbers in terms of realized capital gains.

Unless there is a way to convert without having to claim the realized gain?
 
Looking4Ward said:
I would like to do something similar but the challenge for me is that my VG Wellington holdings in my taxable accounts are now comprised of almost 50% capital gains. Cashing that out in order to convert to another fund would result in some really high numbers in terms of realized capital gains.

Unless there is a way to convert without having to claim the realized gain?
Click to expand...

Unfortunately the answer is - no :(

Take a closer look at how much you are talking about in exact numbers.

I got ~$20K in tax liability this year because of this, but feel I had to do it ...
 
wanaberetiree said:
Unfortunately the answer is - no :(

Take a closer look at how much you are talking about in exact numbers.

I got ~$20K in tax liability this year because of this, but feel I had to do it ...
Click to expand...

Looking at my VG account now. I overestimated the actual percentage but it's still considerable.

It says my cost basis for this fund is $516K and the capital gain (Short/Long) is $121K
 
Looking4Ward said:
Looking at my VG account now. I overestimated the actual percentage but it's still considerable.

It says my cost basis for this fund is $516K and the capital gain (Short/Long) is $121K
Click to expand...

I can't suggest you to sell and pay taxes, it's painful and up to you.

But you are looking at ~$20-30K in distributions every year (maybe even more) !

Maybe you can do it in stages, say over 4 years

Also if you have loses you can offset gains
 
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Looking4Ward said:
Looking at my VG account now. I overestimated the actual percentage but it's still considerable.

It says my cost basis for this fund is $516K and the capital gain (Short/Long) is $121K
Click to expand...

Well that’s not nearly so bad.

If the fund keeps paying large distributions, then your unrealized gains will drop.
 
walkinwood said:
Have a plan B in place if you go over the subsidy cliff- either realize cap gains to the 0% threshold (the tax saved will ease the pain of losing the subsidy) and/or do a ROTH conversion.

A couple of years ago, I bit the bullet and sold all the shares in an active fund that behaved much like yours. The relevant index fund matched its performance & distributed a lot - a lot - less.
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Thanks, Good advice. I will make an another estimate again 2nd or 3rd week of December. That time, I will have a better or more accurate year end income projection (since my wife works part time and income varies and distributions from Vanguard will be final on Dec 10). If I fall of the cliff with my ACA subsidy, I might as well take the hit and I sell some wellington and GABSX and move to more tax efficient funds. I can sell enough to
have LT gains but still manage to get below the 15% tax rate threshold to avoid paying taxes on these gains.
any opinions or comments on this strategy is greatly appreciated.
 
Several Fido funds announced distributions today. Others go on the 6th, 13th, 20th, 26th, 27th, and 30th. How many and from which type(s) of funds vary a lot by day.
 
I checked Vanguard 4Q estimates over actuals last year. VTSAX came in about 10% higher than estimates. VTIAX was about 5% over. I don't think I'm even going to pay attention to them this year, because there's no action I can take on them. I'll wait for the actual numbers to come out. Then I'll have to multiply the total year of VTIAX because you only know the after taxes distributed amount. The foreign tax is not included in the distribution, but counts as 1099 income. You can get the foreign tax back as a credit, but that's after MAGI is calculated.
 
Surprise! One of my Fidelity funds with $0.00 for 2019 estimated distributions delivered almost $4K dividend distribution yesterday. Qualified, I'm sure.

I think we can now safely assume that Fidelity distributions are going to come in a bit higher than the published estimates from 9/30/19.
 
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audreyh1 said:
Surprise! One of my Fidelity funds with $0.00 for 2019 estimated distributions delivered almost $4K long-term cap gain distribution yesterday.

I think we can now safely assume that Fidelity distributions are going to come in a bit higher than the published estimates from 9/30/19.
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I received a distribution from FSGGX yesterday; somewhere between 3 and 4%.
 
Were you expecting that?

I had a few Fidelity funds with $0.00 estimates. We'll see what really happens.....

With a big run up in the last couple of months I expect distributions to be higher than the published estimates.
 
audreyh1 said:
Were you expecting that?

I had a few Fidelity funds with $0.00 estimates. We'll see what really happens.....

With a big run up in the last couple of months I expect distributions to be higher than the published estimates.
Click to expand...

That fund has a December distribution every year. Don't know if it is higher or lower than estimated; I hadn't checked the published estimates.
 
I said I wouldn't bother looking at estimates but I did anyway. It (ACA subsidy) is going to be close for me, especially since the actuals tend to come in higher than estimates. I don't think I'll be doing any conversions this year.
 
What does "Net Income Available" mean? It seems to be a different category than LTG, STG, DIV?
 
Amethyst said:
What does "Net Income Available" mean? It seems to be a different category than LTG, STG, DIV?
Click to expand...
They don't have a DIV category. They used the same term last year. My guess is that this is the because some funds, such as VTIAX, have (foreign) taxes taken out before you receive the dividend. The 1099-DIV will have the total dividend, including those taxes taken out. The estimate is the net distribution you'll get.

Unfortunately we get no update as to what the total dividend is for funds like these until we get the 1099-DIV in January. Too late for people trying to do Roth conversions up to a certain level such as the ACA subsidy.
 
OK Thanks. I suspected it was DIV but wasn't sure.

RunningBum said:
They don't have a DIV category. They used the same term last year. My guess is that this is the because some funds, such as VTIAX, have (foreign) taxes taken out before you receive the dividend. The 1099-DIV will have the total dividend, including those taxes taken out. The estimate is the net distribution you'll get.

Unfortunately we get no update as to what the total dividend is for funds like these until we get the 1099-DIV in January. Too late for people trying to do Roth conversions up to a certain level such as the ACA subsidy.
Click to expand...
 
RunningBum said:
I said I wouldn't bother looking at estimates but I did anyway. It (ACA subsidy) is going to be close for me, especially since the actuals tend to come in higher than estimates. I don't think I'll be doing any conversions this year.
Click to expand...

It will be close for me and the ACA subsidy, too. I was able to sell some shares of a MF at a loss last month to get me under the MAGI limit, assuming the estimates are on or very close to actual. I will have a few days at the end of the year to sell some more shares at a loss in case the estimates come in too low.

I hope we can celebrate our ACA subsidy successes together. :cool:
 
scrabbler1 said:
It will be close for me and the ACA subsidy, too. I was able to sell some shares of a MF at a loss last month to get me under the MAGI limit, assuming the estimates are on or very close to actual. I will have a few days at the end of the year to sell some more shares at a loss in case the estimates come in too low.

I hope we can celebrate our ACA subsidy successes together. :cool:
Click to expand...
Hope so! I'd hate to barely miss it. I have a cap loss carryover that I'm already counting on, but no unrealized losses that I can take.
 
googily, Thanks for posting the link. I tried to find the info on Vanguard's website but couldn't find it.
 
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