In many cases, index mutual funds and ETFs have low expenses. Image: Bildagentur Zoonar GmbH/Shutterstock.com
In order to reduce the tax you pay on mutual funds held in a taxable account, consider these alternatives:
* Tax-managed funds: A number of mutual funds have “tax-managed” in their names. These funds attempt to take losses to offset gains so that no net gains are passed through to investors. If they must take gains, they try to hold stocks for a year or longer before taking profits, in order to qualify for low-taxed long-term gains.
* Index funds: These funds track an index such as the Standard & Poor’s 500. They generally do little trading so they may not realize gains that have to be passed through to investors.
* Exchange-traded funds (ETFs): These are index funds that trade like stocks. They enjoy special tax code treatment so they may be even more tax-efficient than index mutual funds.
In many cases, index mutual funds and ETFs have low expenses. This can boost the returns investors enjoy, over the long-term.
OPM Advises Agencies on Conducting RIFs During Shutdown
Updated Shutdown Contingency Plans Show Range of Impacts
Use Shutdown as Justification for More RIFs, OMB Tells Agencies
Unions Win a Round in Court Disputes over Anti-Representation Orders
Deferred Resignation Periods End for Many; Overall 12% Drop
Senate Bill Would Override Trump Orders against Unions
TSP Adds Detail to Upcoming Roth Conversion Feature
See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder
The Best Ages for Federal Employees to Retire
Best States to Retire for Federal Retirees: 2025
Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process