Smart Portfolios are structured as taxable personal accounts. This means that the tax implications for your Smart Portfolio are almost the same as those for your Personal Portfolio. 

In general, investments sold at a gain will be subject to taxes on the difference in the purchase price and the sale price. The exact rate of taxation depends on the length of time the investment was held (whether it will qualify as a long-term or short-term gain), and your income tax level. 

Another tax consideration lies in the Smart Portfolio rebalancing process. Rebalancing is the buying and selling of investments— it brings your portfolio back in line with the target mix that Stash recommends (based on your risk profile). [Learn more about rebalancing]

The rebalancing process is standard across the financial industry and may generate some taxable events in the short term—in order to keep your portfolio healthy for the long term. 

Please consult a tax professional for any additional tax related questions. 

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DISCLOSURES

Stash has full authority to manage a “Smart Portfolio,” a discretionary managed account.