Withdrawing from taxable for emergency fund

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arf00121
Posts: 4
Joined: Fri Jun 09, 2017 10:48 am

Withdrawing from taxable for emergency fund

Post by arf00121 » Sun Jun 18, 2017 10:31 pm

I recently sold all my stocks in preparation for an emergency fund at the suggestion of the bogglehead community (previously I was without a emergency fund). It is currently sitting in the vanguard brokerage account settlement fund (4K in account)

Should I withdraw this and put into high yield savings account? I believe I will have have to pay capital gains if I withdraw.

Other option is to leave in the settlement fund and withdraw if needed.

whats my move here? want to minimize any taxes/fees.

sport
Posts: 5966
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Re: Withdrawing from taxable for emergency fund

Post by sport » Sun Jun 18, 2017 10:34 pm

You already have incurred any tax obligation you will have when you sold stocks in a taxable account. Whether you leave it in a MM fund at Vanguard or move it to a bank will have no further effect on your taxes.

DSInvestor
Posts: 10557
Joined: Sat Oct 04, 2008 11:42 am

Re: Withdrawing from taxable for emergency fund

Post by DSInvestor » Sun Jun 18, 2017 10:40 pm

Check your brokerage account to see how much in realized capital gains or losses you have. Also check how much is long term vs short term. This will help you assess your tax liability on the sale of the stocks.

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