Sounds like your fund did exactly what it was supposed to do. Two funds I hold with very similar portfolios distributed 4.5% and 7.1% LTCG this year, both on the high side, but not unprecedented. Usually happens in high-flying markets as the managers sell winners that they feel are topping out in order to pick up assets with better growth prospects. Not what I had planned on either, so I may end up owing CG tax this year, but that’s one of the risks of holding these types of funds. Side note: the fund distributing 4.5% had dividend distribution of 0.5%.A recent topic here is Vanguard being fined by SEC for generating excessive capital gains in some of their target-date mutual funds. I noted the OP said they'd recieved $1M for a $6.4M account (15.6%). I noted for 2024, despite careful tax planning, one of my Fidelity mutual funds (FDSSX) generated an unexpected 4% capital gain for 2024 (including a 0.4% STCG portion). this is a historic high for that fund (existed since 1990) and is likely to mess up my IRMAA premium reduction
Did anyone else get burned by a surprise December mutual fund distribution for the past year? What % distribution would you think is excessive if the dividend is listed as <1%? For Vanguard 15.6 % was enough for a fine, what amount should trigger regulator's inquiry? Wondering if I should complain to Fidelity about this.
. this is a historic high for that fund (existed since 1990) and is likely to mess up my IRMAA premium reduction 
Did anyone else get burned by a surprise December mutual fund distribution for the past year? What % distribution would you think is excessive if the dividend is listed as <1%? For Vanguard 15.6 % was enough for a fine, what amount should trigger regulator's inquiry? Wondering if I should complain to Fidelity about this.Statistics: Posted by KanCityKid — Sat Jan 18, 2025 7:15 pm — Replies 46 — Views 2192