A Taxing Situation for some fund owners

[disneysteve]

These articles pop up every time we have a down year in the stock market.

True. There are a lot of people out there (probably not the folks on this site) who don’t understand how there can be gains when the fund lost money.

 

[Chuckanut]

I have been investing for 35+ years, so this scenario is not a new one. It becomes more of a "first world" problem.

Fortunately I do not "need" my capital gains an can choose to reinvest them (and not necessarily in the same fund).

I treat it like I treat those "surprise" year end bonuses I would get at Megacorp. Would I rather give up the bonus, or pay the tax on the bonus? I'll just have to suffer the slings and arrows of this outrageous taxation .

+1

I'd avoid IRMAA if possible, but if it doesn't make sense to do so, or you just plain made too much money..... consider it a' success tax'.

 

[audreyh1]

Some of us will always pay some, so it’s more of a matter of trying to stay in a lower tier. And balancing future tax rates/IRMAA against current.