Managing Dividends and Capital Gains

[lawman]

I have a corporate investment grade bond fund (VFIDX) in a regular brokerage account that pays dividends and capital gains each year..I have to pay income tax on those whether I reinvest or not..I take those now and use them to live off of. I'm concerned that once I am forced to take RMD's from my I.R.A. it will push me into higher income brackets costing me more in tax and especially in IRMAA penalties..Right now I have a rather large loss in that fund..Once I am forced to take RMD'S I will not need to take anything from that holding..Looking for advice on the best way to handle this...What can I do with that fund that will help me with taxes and IRMAA? Thanks

 

[TheWizard]

Sell that taxable bond fund and put the proceeds into VFIAX, the S&P 500 index fund.
You will likely have zero CGDs going forward and most of the dividends will be qualified, hence taxed lower.

The way to avoid getting into a higher IRMAA tier from age 72 on is to do Roth conversions in the years prior to age 72...

 

[RunningBum]

Look at this guide for tax efficient placement of investments in your various accounts.
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement

 

[lawman]

Look at this guide for tax efficient placement of investments in your various accounts.
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement

thanks...lots of info.