How bad are the tax penalties for transferring $$$ from stocks to a money market fund?
May 3rd, 2010
I now have shares in a money market fund within the same mutual fund company where i previously held stocks and bonds. What are the tax implications of this?
It is not part of an IRA
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Tags: ira, money market fund, mutual fund company, stocks and bonds, tax implications
If you sell stock and make income from them and you held the stocks for more than a year you will pay long term capital gains on the profits. From then on you will pay taxes on your meager interest payments.
You cannot put this money in an IRA?
I am not sure but thats a very interesting questions, I have been wondering that myself. I hope you find the answer!!
there are no penalties…if you sell stocks you will have either a gain or a loss…if it’s a gain, it’s either long term, you held the stocks longer than 1 year, or short term…if it’s long term, the maximum tax on long term gains is 15%…short term gains are taxed at your marginal rate like the rest of your income…if you have a loss it can be written off against gains…you can take a net loss of up to $3,000/year…it can get complicated…suggest you consult a tax professional.