SoReady
Recycles dryer sheets
Hi,
For the past 3-4 years we have been able to live off of our after tax monies. These funds are now getting low enough that I need to reach into my IRA/401k buckets.
When I did a recent review of my holdings I realized that it throws off dividends and capital gains. Given I never really needed to report those previously I didn't pay much attention to them.
What I am wondering at this point from a tax perspective is if I have the dividends put in to the "sweep" account and paid top me quarterly (or monthly), is this just considered ordinary income, or is it reported somehow as dividends (qualified and ordinary)? The same question would pertain to any capital gains as well.
If it is reported as dividends/capital gains and I stay below the 15% bracket does it get taxed differently?
TIA,
Bob D
For the past 3-4 years we have been able to live off of our after tax monies. These funds are now getting low enough that I need to reach into my IRA/401k buckets.
When I did a recent review of my holdings I realized that it throws off dividends and capital gains. Given I never really needed to report those previously I didn't pay much attention to them.
What I am wondering at this point from a tax perspective is if I have the dividends put in to the "sweep" account and paid top me quarterly (or monthly), is this just considered ordinary income, or is it reported somehow as dividends (qualified and ordinary)? The same question would pertain to any capital gains as well.
If it is reported as dividends/capital gains and I stay below the 15% bracket does it get taxed differently?
TIA,
Bob D