Skip to Content

Diversifying 529 Education Plans

The federal tax benefits of 529 plans are too good to pass up. After-tax money goes into a 529. All withdrawals to pay for qualified education expenses are tax-free. Great deal – it avoids the capital gains or ordinary income taxes imposed upon other “normal” investments.

Capital Gains and Mutual Funds – When does strategy matter?

You may have been warned about mutual funds distributing capital gains at the end of the year. Should you be concerned? Here’s the scoop.
 
Assume a mutual fund (let’s call it the “Fund”) sells individual stocks during the year (as they always do). Those sales can result in a gain or loss. If the sales result in a gain, the Fund must distribute pretty much all of that gain (technically 95%) to the owners of the Fund. 
 

Syndicate content