I have a mutual fund called Meridian Growth fund, about 20,000. From what they told me, they do not charge a penalty to withdraw funds, but obviously I would pay when I do my taxes. If I were to remove 10,000 from the fund -- I'm wondering roughly how much I will end up paying for the taxes on this. Is there any way somebody could give me a very rough estimate of how much I will get hit with on my taxes?=====>It depends; iin general, there is not typically any penalty levied on the sale of a mutual fund. But proceeds distributed from a retirement account ,i.e, IRA or etc may cause for penalty, or perhaps late payments for the taxes imposed on any income coming from a mutual fund.If you bought shares of a fund, you have a basis in those shares generally equal to what you paid for them. When you sell the shares, the difference between what you paid for them and what you receive for them is called capital gain. Capital gains may not even be taxed for 2016 UNLESS your marginal tax rate is hihger than 15%; however, if your tax bracket is higher thana 15%t then you need to pay tax on your LTCG at 15%; so say your LTCG is $10K and your tax bracket is higher than 15% then you ned topat $1.5K toIRS, so it depedns on your tax rate.
It?s up to you to report mutual fund transactions on your tax return, as well as pay the appropriate taxes on each type of fund income
I mean, are we talking $500? $1,000? Or more? Could you please give me a ballpark estimate?====>>As mentioned above.