If I transfer TDIF dates, do I have to pay taxes that year?

If I switch my TDIF from 2045 to 2055 . … do I have to pay taxes if I transfer the funds from one TDIF to another?

It would depend on the account they are in. If they are in a retirement account (Roth IRA and trad IRA) you won’t pay taxes on gains as long as you don’t withdraw the funds from your account.
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If they are in a regular brocket age account then yes you would pay taxes on the gains.
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I’m not sure on a 403b or other retirement accounts. Hope this helps !

Thanks for responding! I switched my TDIF from 2045 to 2055 in my work 403b aka 401k. So I don’t need to pay taxes correct?

I am 99% sure in a 403b / 401k that you won’t pay any taxes until you withdraw funds from the account at retirement, at which point they are taxed at ordinary income tax.
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Since a 403b is pre tax dollars, it will reduce your tax liability for the current year for contributions, but too will pay taxes on earnings once you start to withdraw .

You can always call the company which holds the funds (fidelity, vanguard etc.) to double check.
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Now with that being said, it is generally better To invest up to any employee match in your 403b. After you reach that limit (ie 4%) start maxing out your Roth IRA, as all of the contributions and growth will be 100% tax free after having the account for a minimum of 5 years and you are of age to withdraw funds 59 1/2

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Thanks. I called vanguard and they said I don’t need to pay taxes. :slight_smile:

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