Ask Experts Questions for FREE Help !
Ask
    LOUIS 1's Avatar
    LOUIS 1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 7, 2009, 07:50 AM
    Mutual funds
    What are the stipulations for early withdrawal from mutual funds and what are the taxes and penalty's
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Apr 7, 2009, 10:19 AM

    Depends on the fund. Some funds impose a fee if you sell shares within a certain number of days or weeks after purchasing the fund. This is to discouage day-trading of the fund. If your fund imposes such a fee it will be spelled out in the prospectus. When you sell your fund you will owe taxes on any capital gains you may have (as when you sell any type of security), and also any capital gain distributions from the fund, or dividend distributions.

    But I'm wondering, since you asked about taxes and penalties - are you asking specifically about funds purchased for either an IRA or a 401(k) account? Please clarify what type of fund you are talking about, and whether it's your own personal investment versus inside a retirement account.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Mutual Funds [ 2 Answers ]

I am starting to take an interest into investments and I hear mutual funds are great ways to start up an investment portfolio. My question is how much should I invest, I work at sears as a commission sales man, I am also paying for school so that wipes me clean during the time of paying classes,...

Mutual Funds [ 5 Answers ]

How are Mutual funds beneficial in tax planning? If we chose mutual funds, there are lot of banks issuing the same. What is the key critirion used to decide about selection of mutual funds

Mutual Funds [ 1 Answers ]

I've been researching mutual funds and I've narrowed it down to 2 which have very similar holdings (5 of the top 10 holdings are identical) and are very similar in other side by side comparisons. The main difference is one has 70/30 % stocks and bonds (FNMA and us treasury note) the other is100%...

View more questions Search