Tax efficiency

[Chuckanut]

I want to thank the owners and member of this website. I just corrected a problem that increased my taxes. I had been keeping some income producing funds in my taxable accounts and some index funds that paid out few dividends in a tax free account. I just swapped the funds so the dividend income fund will be in the tax free account and the low dividend fund in the taxable account. It's a little late or 2011 but should help a bunch from now on.

[pb4uski]

That is one of the beauties of this forum - one can learn a lot from others here - there is a lot of collective wisdom in these boards.

[Mulligan]

Quote:

Originally Posted by Chuckanut I want to thank the owners and member of this website. I just corrected a problem that increased my taxes. I had been keeping some income producing funds in my taxable accounts and some index funds that paid out few dividends in a tax free account. I just swapped the funds so the dividend income fund will be in the tax free account and the low dividend fund in the taxable account. It's a little late or 2011 but should help a bunch from now on.

+1 to your thoughts.
I have had the same experience. A couple posters have commented that they regularly look at the budget to create knew ways to save money or cut expenses. I have begun to do this and really hit a home run this week. I started advanced year end tax strategy. I knew I was going over my AGI limit for my $2,000 pension tax credit. I originally was just going to take a 5k IRA deduction and get it under. By planning ahead I discovered the income limit would prevent me from doing this ( I come from the 403 b world, so I assumed I knew what I was doing and was wrong). I kept at it and determined I can pump money into my 529, which I needed anyway. Thus I get my credit money back. If this would have happened a few years ago, I would have lost the money because I would have missed the Dec. 31 deadline to contribute.