SecondCor521
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WHEN do Vanguard Mutual Funds make their final dividend distributions ??
Is there a way to find their timeline, would we have enough time to make some Roth Conversions before the year end ? How can I find out the dates ?
Using the Turbo Tax 2019, in trying to project the year end Income & taxes, we have to make assumptions about the projected dividends & other calculations.
I am getting close to the higher margin of 22% Tax Bracket & MAGI is getting too close for comfort of the IRMAA line.
How do you (or would you) project reasonably close year end income ? Any pointers ?
Thanks in advance
I asked Vanguard about this about a week ago. They said they would publish the dates for their December dividends tomorrow (12/10) at the following URL:
https://investornews.vanguard/mark-your-calendar-for-year-end-fund-distributions-3/
I personally keep a list throughout the year of all of my taxable sources of income. In December, I go around and get those numbers myself.
Since I own a Vanguard fund in a taxable account, I wait until it distributes it's last dividend in December. I then figure out and make the Roth conversion that I want to make. Since the Vanguard dividend is usually before Christmas, I have time to make the Roth conversion.
I do my transactions as soon as I reasonably can; I'd rather not leave a conversion to the last day or two, even if that is technically feasible.
Also, since my traditional IRA is in Vanguard mutual funds and Roth conversions are done at the end of day prices, I usually do my Roth conversions in two steps. I do the first one to get about 90% or 95% of the amount converted, then the next one I do the rest. This way I can fine tune the second conversion and get my target a little closer.
Finally, since we can no longer do recharacterizations and I am converting up to a cliff, I usually leave myself short of the cliff by a bit because the consequences for going over the cliff by $1 are way worse than the consequences of being short of the cliff by $200 or whatever.