Personal Investments • Re: Does it make sense to do any TLH with this meager taxable account?

Then how do I go about getting how much the health care fund is costing me tax-wise compared to total stock market?

Here is one way:
1. Write down the dollar amount of your VCHGX back on January 1, 2023.
2. Compute how many shares of VTSAX that dollar-amount could represent on January 1, 2023.

3. Note the taxes calculated on your 2023 tax return and write down that number.
4. Remove all the distributions from your VCHGX from you 2023 tax return and calculate the taxes without those distributions. Write down that number.
5. Take the two numbers and calculate the difference. That is the amount of income taxes paid because of VCHGX distributions.

6. Calculate the distributions of the VTSAX that you would have received in 2023 for the number of VTSAX shares calculated in #2 above.
7. Calculate a tax return for 2023 with those VTSAX distributions. Note the dollar amount on that "What if?" tax return.
8. Take the numbers in steps 7 and 4 and calculate the difference. That is the amount of income taxes paid because of those extra VTSAX shares.

Compare the taxes in step 5 and 8.

Statistics: Posted by livesoft — Sat Feb 24, 2024 6:52 pm

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