FinancialDave wrote:One suggestion would be to go to TurboTax on-line where you can "run" the scenarios for free. Put in your expected salary, education costs, any other income or expenses, then see if your expected gain from the sale will affect it.
Granted the taxes and credits in 2013 may not be exactly like what they were for last year but this will give you an idea.
The other thing to watch out for is if you are still living at home and parents are claiming you as a deduction, this does change the situation, so you just need to be aware of that. Good reason to "practice" a tax return.
You should also double check the fund to see if the fund has a back end load if you take the money out before a certain date.
Holding the fund until it qualifies for the long term capital gains tax rate is about the only other thing I would be worried about. With that expense ratio, and likely other hiden costs, you will need to move it sooner or later and sooner is better.
Even if you have to pay some capital gain taxes when you sell the fund you will also get a tax deduction when you deposit the money into an IRA so you could actually come out ahead on your taxes this year.