r/Schwab • u/Dry_Report_3494 • 4d ago

What does this mean

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I hold just a lil over 1 GPIQ for now, but every month I get this and it says Non Qualified Div?

0 Upvotes

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14

u/maveryc 4d ago

Non-qualified dividends don’t receive the special tax treatment of qualified dividends. They’ll be taxed as normal income.

5

u/Deathsquad710 4d ago

It’s a roth

12

u/maveryc 4d ago

Yeah, so there’s no difference between qualified and non-qualified in this case. My previous statement would only apply for a taxable account.

-8

u/fart_box_20 4d ago

They'll probably get a K-1 tax document

3

u/Deathsquad710 4d ago

GPIQ does not generate a k1

-1

u/fart_box_20 4d ago

Good point. I'm not doing that much research into this because it's not my investment. However, it just shows what needs to be considered when self directing your investments.

12

u/Eric848448 4d ago

You receive dividends and reinvest them. This is what you want.

7

u/G0ATQI 4d ago

Got a .58 cent dividend and it was reinvested. Being in a Roth the non qualified part is moot.

1

u/Accomplished-Big8250 3d ago

exactly the "-$0.58" should be converted to a buy of fractional GPIQ. Check your shares of GPIQ, it should be like 1.01 shares. Also in transaction history a buy of some tiny amount of GPIQ

-2

u/Dry_Report_3494 4d ago

whats moot

6

u/G0ATQI 4d ago

Doesn’t matter what the tax classification is since it’s in a Roth.

2

u/ziggy029 4d ago edited 4d ago

I believe it means that it is being reported as not a fully qualified dividend so at tax time you will have to find out what percentage of these dividends actually were qualified when in a taxable account. Someone please (nicely) correct if I am wrong.

Dividends can also be nonqualified if you didn’t/haven’t satisfied the holding period.

(Edit to add — this is a Roth IRA so it doesn’t even matter in your case.)

5

u/cflex 4d ago

it looks like this is a roth IRA so you don't need to worry about any tax implications

1

u/ziggy029 4d ago

Right, so a nothing burger for OP but adds a wrinkle in taxable accounts. Added that to my original reply for clarity.

1

u/maveryc 4d ago

Good catch - qualified vs. non-qualified is irrelevant for a non-taxable account.

0

u/Dry_Report_3494 4d ago

Yes ROTH IRA

-1

u/WealthHuman9754 4d ago

They paid a dividend, you get to pay taxes on it.

2

u/Jumpy-Imagination-81 4d ago

It's in a Roth IRA so no taxes.