Not exact matches
When the fund distributes capital gains from the sale of securities — this could be taxed at
ordinary income tax
rates or the more favorable long - term capital gains
rate, depending on how long the securities were held in the fund.
When the fund distributes dividend
income — this is generally taxed at
ordinary income tax
rates.
The economists Alan Viard and Eric Toder have a plan to do this; they would offset repeal of the corporate tax by taxing dividends and capital gains at the same
rate as
ordinary income, and by taxing those gains every year, not just
when the stock is sold.
When withdrawing from a taxable account would require selling investments held less than a year, resulting in short - term capital gains, which are taxed at
ordinary income tax
rates.
And
when the stock is eventually sold, it will be eligible for capital gain tax treatment rather than being taxed at [higher]
ordinary income tax
rates.»
When you eventually make withdrawals during retirement, you'll have to pay taxes on original contributions and the account's earnings at your
ordinary income - tax
rate.
You're taxed at your
ordinary income tax
rate on the money
when you take the money out.
The earnings from an annuity,
when withdrawn, are subject to the
ordinary income tax
rate, which for many is higher than the long - term capital gains
rate that one incurs in owning a mutual fund, according to Daniel Kurt, writing in Investopedia.
So
when you take a withdrawal from your 401k, all the money that comes out is taxable at
ordinary income tax
rates.
When a majority of the
income for high earning taxpayers comes from wages, the «
ordinary,» i.e. higher,
income tax
rates come into play, which means that compensation and other «
ordinary»
income over certain levels is subject to the highest federal tax
rate of 39.6 percent in 2017.
And then related to that, Joe, is gosh, a lot of people have the bulk of their savings in a retirement account that
when they take that money out, it's all taxed at
ordinary income rates, and we see this over and over again.
Taxable withdrawals from an IRA are taxed as
ordinary income, so you won't get the benefit of lower capital gain tax
rates when you withdraw this
income.
Withdrawals will be taxed at the same
rate that you'll be paying on your
ordinary income when you withdraw.
When the account holder begins taking withdrawals, which are mandated by age 70 1/2, taxes will be paid on distributions according to
ordinary income tax
rates applicable at that time.
If you sell
when the loss is short - term, the loss will zero out your short - term capital gain, which is taxed at the same
rate as
ordinary income.
When you withdraw your funds in retirement, you'll be taxed at your
ordinary income rate.
When a fund distributes its short - term capital gain earnings, these amounts will be distributed and reported to you as an
ordinary dividend in Box 1a of Form 1099 - DIV and will be taxable at
ordinary income tax
rates.
Incentive stock options offer the possibility of converting the profit that's built into your option
when you exercise it from
ordinary income, taxed like wages, into long - term capital gain, taxed at a lower
rate.
Conversely, with some tax - deferred accounts, you may contribute pretax dollars to qualified retirement savings plans, such as IRAs or company - sponsored 401 (k) s, in which case distributions or withdrawals are taxed at
ordinary income tax
rates when they occur after age 59 1/2.
This article suggests that RSUs are not taxed at grant and my understanding (based on this article) is that
when RSUs vest and are converted into company stock, the value of the stock at the time of vesting will be considered as
ordinary income and taxed at your marginal
rate.
I agree with the author
when he states «there is a strong preference for holding
income - oriented investments in tax - advantaged accounts and holding growth - oriented investments in taxable accounts» Following that reasoning, it would seem preferable to put cash and taxable bond, which are taxed as
ordinary income, into a tax advantaged accounts and putting equities (beyond what can be stashed in tax advantaged accounts) into taxable accounts where they can benefit from lower capital gains and qualified dividend tax
rates.
In my view capital gains and dividend / interest
income when realized within a traditional IRA are tax deferred until withdrawn,
when they are subject to
ordinary income tax
rates.
Dividend
income is no longer as tax inefficient as it used to be
when it was taxed at the
ordinary income tax
rate.
What I mean is that
when an investor holds XSP in a taxable account, any dividends received are treated as
ordinary income and taxed at marginal
rates.
So even
when you're in the accumulation phase, and paying dividend and capital gains taxes at the highest bracket, this is still less money than paying
ordinary income rates at your lower (retired) tax bracket.
You'll get a tax deduction on contributions, the growth and reinvested distributions are tax - free along the way, but you'll have to pay
ordinary the highest
income tax
rates on all of the money
when you make withdrawals (and there are tons of rules about what you can and can't do, and stiff tax penalties if you break them).
But
when you start making withdrawals, they will be taxed at your
ordinary income tax
rate.
If you rolled the stock into an IRA, all appreciation would be taxed as
ordinary income when withdrawn, at your top tax
rate.
This was
when stock markets were averaging 15 % annually, 3 % GDP growth was considered a bad year, government bonds yielded between 5 % and 10 %, the highest marginal tax
rate on
ordinary income was ~ 70 %, just about the only way to invest was to pay a full - service stockbroker over 5 % commission to buy a stock or a mutual fund, and inflation was averaging 4 % to 8 % annually.
When a mutual fund dividend includes long - term capital gain, you pay a lower
rate of tax than you would if you received
ordinary income.
While tax is deferred on earnings growth,
when withdrawals are taken from the annuity, gains are taxed at
ordinary income rates, and not capital gains
rates.
When you earn interest personally, it's taxed at your
ordinary income tax
rate.
When a property is sold, its depreciation must be recaptured and then incur capital gains tax (often at a lower
rate than
ordinary income).
Under the federal tax code,
when a creditor cancels a taxpayer's debt, the IRS treats the amount forgiven as
income, taxable at
ordinary rates.