Jae Oh, author of, joins Robert Powell, the editor of Retirement Daily, to discuss how large capital gains distributions from mutual funds might impact a taxpayer's advanced premium tax credit or income-related monthly adjustment amount (IRMAA).
As soon as it begins, Vanguard distributed large capital gains in 2021, which was a big surprise to shareholders.
This may sound all good, but a large capital gains distribution may have a significant effect on a person's taxable income.
Capital gains distributions may have affect advanced premium tax credits under the Affordable Care Act. This reduces the premium tax credit and boosts the health insurance premium.
Beneficiaries might be affected by capital gains distributions under Medicare.
Oh states that large capital gains distributions are not going away. As more and more people advanced beyond the age of 65, much more people will be affected. This means that it is crucial to be tax-effective in your investing and income distribution.
Follow us on and!