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nkyguy1988 t1_j2bnfsc wrote

Reply to comment by Escape2Freedom in Penalties For Withdrawing from My Vanguard Index Fund Early?? by Escape2Freedom

So is it in a taxable brokerage, Roth IRA brokerage, traditional IRA brokerage? What is the tax status of the account. You have not answered that, and that is the most critical piece of information.

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Escape2Freedom OP t1_j2bo1w1 wrote

It's an individual taxable brokerage.

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nkyguy1988 t1_j2bojqt wrote

Depends if you are selling for a gain or loss. Nothing will be due when you sell for tax. There are no penalties in taxable accounts. If selling for a gain, you will either have long term or short term capital gains tax due. If selling at a loss, there is no tax due and you can claim up to 3000 in a tax deduction, net of offsetting gains.

Just withdrawing cash from the account is not a taxable event.

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