Mutual Fund Generated Income

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Topic Author
Musigny
Posts: 7
Joined: Wed Nov 07, 2018 8:05 pm

Mutual Fund Generated Income

Post by Musigny »

I'm new to investing in mutual funds in a non-tax-advantaged account like an IRA or 401(k).

I want to run some numbers to see what kind of taxable income VTSAX would generate per year. If I retire early, I'm trying to put together a budget and see what my options are for health insurance. Obamacare has lower premiums for $65K and under household incomes.

What am I looking for in historical data to show what income was generated per share and thus taxable for the shareholder.

Thanks for any help/guidance.
krow36
Posts: 2341
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Mutual Fund Generated Income

Post by krow36 »

PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Mutual Fund Generated Income

Post by PFInterest »

We'll look at the dividend. Its like 1.8% and like 99% qualified.
There's your answer.
Topic Author
Musigny
Posts: 7
Joined: Wed Nov 07, 2018 8:05 pm

Re: Mutual Fund Generated Income

Post by Musigny »

krow36 wrote: Fri Nov 23, 2018 11:02 pm Here's 15 years worth:
https://investor.vanguard.com/mutual-fu ... ve-returns
Thanks you! Would a shareholder be taxed on the columns Capital return and Income return in any given year?
Topic Author
Musigny
Posts: 7
Joined: Wed Nov 07, 2018 8:05 pm

Re: Mutual Fund Generated Income

Post by Musigny »

PFInterest wrote: Fri Nov 23, 2018 11:02 pm We'll look at the dividend. Its like 1.8% and like 99% qualified.
There's your answer.
Thank you. Is there no Capital Gain realized? What does 'qualified' mean?

Thanks again.
krow36
Posts: 2341
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Mutual Fund Generated Income

Post by krow36 »

Musigny wrote: Sat Nov 24, 2018 12:13 am
krow36 wrote: Fri Nov 23, 2018 11:02 pm Here's 15 years worth:
https://investor.vanguard.com/mutual-fu ... ve-returns
Thanks you! Would a shareholder be taxed on the columns Capital return and Income return in any given year?
The Income return is distributed to you as dividends. You can have them reinvested in the fund, or put it in another fund such as a MM fund. Whatever you do with them, they are counted as taxable income. However because the dividends of VTSAX are mostly Qualified dividends, they are taxed as long-term capital gains. In the 12% income tax bracket, they are taxed at 0%. Above the 12% bracket they are taxed at 15%. Non-qualified dividends are taxed at your regular income tax bracket. What is your current income tax bracket?

If you sell your shares, you pay the capital gains rate on the difference between what you paid for the shares (including any dividends you reinvested), and the what you sold them for. If you don't sell them, the only taxation will be that on the dividends.
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