Advisors often hear “the fund announced a capital gains distribution”—but announced and paid are not the same moment. Mixing them up can confuse timing, tax year, and who still holds the shares.
Announced vs paid, in plain language
An announced distribution is the fund’s stated intention or estimate for a forthcoming payout. A paid distribution is what actually went out on the payment date to shareholders of record. Between announcement and payment, amounts can be refined, and ownership can change.
Why sell-before-record comes up
In taxable accounts, some investors discuss selling before the record date so they are not shareholders of record when the distribution is allocated. That conversation is timing- and situation-specific. Aftertax’s job is not to recommend trades; it is to help you illustrate the distribution concepts clearly so the meeting stays grounded in facts you can support.
Illustrative sample for this education page (Fund A / Fund B / Fund C)
| Fund (sample) | Status | Illustrative $/share |
|---|---|---|
| Fund A | Announced (estimate) | $1.20 |
| Fund B | Paid | $0.85 |
| Fund C | Undisclosed | — |
Never invent estimates — show Undisclosed
When a reliable announced or paid figure is not available, Aftertax does not invent a number. The honest label is Undisclosed. Filling gaps with made-up estimates would look precise and still be wrong—worse than saying the data is not there yet.
- Use announced figures only when they are clearly labeled as such
- Prefer paid figures when you need what actually hit accounts
- Default to Undisclosed when the source is missing or incomplete
Pair this with calendar-year tax drag in dollars when comparing funds in a taxable sleeve.