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I'm curious about what people typically end up paying in taxes for index fund holdings in a taxable account (28% bracket). I'm looking at VFINX (Vanguard S&P 500), but general numbers would be helpful. (I see 'Returns After Taxes on Distributions' on the Vanguard site, but I'm not sure what assumptions they're making).

I have noticed that in some 401k/IRA vs. taxable account analyses, they suggest your growth will be taxed at regular income rates, but I would expect only a little bit of tax from the dividends paid and captial gains when I sell, and even those would be at long-term rates after a year. Am I mistaken?

Basically, I'm maxing out my 401k, I can't contribute to a Roth, and I'm interested in saving additional money and retiring while the substantially equal periodic payment rules wouldn't allow me to get much from my tax-advantaged account.

Thanks for any help!
-Salient
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