What a taxable index-fund account is actually worth after expense-ratio drag and after Vermont takes its share of the gain — which, in most states, is not at the federal preferential rate.
There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Vermont's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. TREAT THE 40% WITH CARE -- IT ALMOST NEVER APPLIES TO A BROKERAGE PORTFOLIO. Vermont taxes capital gains at the ordinary rate schedule, but 32 V.S.A. 5811(21)(B)(ii) allows a subtraction of EITHER the first $5,000 of adjusted net capital gain income OR 40% of adjusted net capital gain from assets held more than three years. The 40% branch expressly EXCLUDES gains from: real estate used as a primary or non-primary residence; depreciable personal property other than farm property and standing timber; and stocks or bonds publicly traded or traded on an exchange, or any other financial instruments, regardless of whether sold by an individual or a business. So an ordinary investor selling appreciated index funds, individual stocks, or bonds gets the flat $5,000 exclusion and NOT the 40% one. The 40% branch is aimed at closely held business interests, farm property, and standing timber. Both branches are measured on adjusted net capital gain as defined in IRC section 1(h), reduced by qualified dividend income, and the total subtraction may not exceed the LESSER of 40% of federal taxable income or $350,000.
What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
A required minimum distribution is ordinary income, taxed at your top bracket and often pushing you into the next one. Here is the federal tax on RMDs from $20,000 to $75,000 at different income levels, why the default 10% withholding usually leaves a bill, how to avoid an underpayment penalty, and the three side effects that make the real rate higher than the bracket.
The required minimum distribution on every common balance at every age from 73 to 95, worked from the IRS table, plus what happens to the account over twenty years of withdrawals at 0%, 5% and 7% returns. The short version: the share you must take rises every year, and at good returns the dollar amount keeps rising with it.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.