When we sell $500K in Equities from the TDA - won’t we have to pay a lot of tax on it - at the current rate of 25%? Or we move this next year when the tax rate drops to 15%? Is that a consideration here or we ignore that fact?
it says ignore taxes and transaction fees. was confused by the 40K max too, but i think it doesnt apply because these are not contributions, just rebalances
Thanks for the reply, and looks like in Part B, there is no tax deduction for the charitable contribution of 6K.
sell 500,000 equity and buy 500,000 bonds, this is reallocation. read exhibit 1 carefully, it said reallocation are not subject to tax.
Okay - so there is no transfer out of the TDA. If there had to be a transfer out of the TDA - would we yet ignore income taxes? Does the statement “Assume no transaction costs or liquidity needs” mean ignore income taxes also?