|
Taxes on payout of interest, dividends and CG Distributions
04-21-2015, 07:32 AM
|
#1
|
Recycles dryer sheets
Join Date: Jan 2014
Location: St. Louis
Posts: 90
|
Taxes on payout of interest, dividends and CG Distributions
I have switched our taxable accounts to payout all interest, dividends and Cap gains distributions. That account manager says they cannot withhold taxes on those as they are paid monthly. Does that match what others have experienced? This is an EDJ account.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-21-2015, 08:01 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
|
It's highly unusual for income taxes to be withheld from dividends or interest and I suspect EDJ really doesn't want to bother. I see over 100+ tax returns each year and maybe one will have a 1099div with income taxes withheld. It usually results from someone failing to report that income on their tax return and the IRS then requiring the payer to withhold at the source.
|
|
|
04-21-2015, 08:05 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
|
Quote:
Originally Posted by Raymond01
...Does that match what others have experienced? ...
|
Yes, this is typical. But it was taxable income before as well even if you reinvested them and you didn't have tax withheld so it isn't really any different and shouldn't affect your taxes withheld or refund.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
04-21-2015, 09:02 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,242
|
It is typical for them not to withhold....
As in another thread, it is not impossible.... but something they do not want to get into if they can help it...
If you are talking big money.... just pay qtrly payments....
|
|
|
04-21-2015, 09:44 AM
|
#5
|
Recycles dryer sheets
Join Date: Feb 2013
Location: Makakilo and Reno
Posts: 374
|
Vanguard does offer the option to withhold taxes but if I remember correctly they only have one percentage rate available? I think it was 21 or 28 percent, I decided against it.
|
|
|
04-21-2015, 01:54 PM
|
#6
|
Recycles dryer sheets
Join Date: Jan 2014
Location: St. Louis
Posts: 90
|
Thanks everyone.
|
|
|
04-21-2015, 03:21 PM
|
#7
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,358
|
Quote:
Originally Posted by Raymond01
This is an EDJ account.
|
I think you just put your finger on the problem.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|