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Tax on a Index Mutual fund?
When investing in a Index Mutual Fund, say I have $1,500,000.00 at retirement. What will the tax rate be. 40%? Or is there different tax rates for index mutual funds (please note I am NOT referring to a Roth IRA)
3 Answers
- Steve DLv 76 years ago
Your tax rate depends on your annual income, so it will depend on how much you withdraw. The type of investment is irrelevant (the IRS does not know how you invested, nor does it care, it just wants to know how much you tale out so it can tax that amount).
- JackLv 66 years ago
If your imaginary money is in a traditional 401K or traditional IRA, then anything you withdraw from the account is taxed as "ordinary income" in the year you make the withdrawal.
- ?Lv 76 years ago
you only get taxes on net profits when you sell - if you sell all $1.5mill and your cost was $1.4 mill, your taxable income is only $100,000 and it depends on if it is short term or long term gains and you don;t pay a flat 40% on anything
