Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Two issues.
1. My wife and I have several DRIP plans, which have gotten great returns, the problem is that every year our tax bill is through the roof because of the annual dividends paid by the plans. How do we minimize our taxes from these DRIPs? Could we: 1) liquidate them, pay the taxes, and put them in tax-managed mutual funds or 2) have the DRIP adminstrators withhold some of the dividends for taxes?

2. How does one invest in large lump sum payments and minimize the taxes in the future, when you've maxed out your IRA contributions and are contributing 10% of your salary to your 401k?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.