Getting a big yearly dividend on a mutual fund

[Katrina]

Well, we didn't expect it and we got a HUGE dividend on our mutual fund this year paid out and that means we owe big time on taxes. It's the downfall of having a mutual fund that's not an IRA.

My husband doesn't want to make changes to the fund because of when he retires in 5-7 years and wanting to be in a certain tax bracket. So I guess we just have to keep owing taxes like this.

Did you get a huge dividend payout this year?

 

[Cam]

All of the dividends that I receive are reinvested. I don't pull anything out unless it's an immediate need.

 

[Katrina]

All of the dividends that I receive are reinvested. I don't pull anything out unless it's an immediate need.

Ours were reinvested too!! It was just a really HUGE amount.