Tax Tuesday:
Mutual funds can create two very different types of taxable capital gains - and understanding the difference can prevent unwelcome surprises at tax time. Annual capital gain distributions occur when the fund manager buys and sells securities inside the fund. Even if you did not sell a single share, you may still owe taxes on these realized gains, which are typically reported on Form 1099-DIV.
Capital gains from selling your own fund shares happen only when you choose to sell. The gain is based on the difference between your purchase price (cost basis) and your sale price and is taxed according to how long you held the position.
Both types of gains impact taxable accounts differently, and both should be considered when choosing investments, planning withdrawals, and managing year-end taxes. A coordinated strategy can help reduce surprises and improve long-term tax efficiency.
Join our webinar
The Tax Journey: Accumulation to Wealth Transfer
Thursday 12/11/25 @ 5pm EST
REGISTER HERE https://www.hpkprovident.com/events