We have money with a financial advisor, one account that has stock & exchange-traded funds, we have an account that is our money market account, and we have our IRA’s.
We are thinking about using the money from our Money Market account to pay our annual bills as our financial advisor felt that using this account was the best place to pull from as this money has already been taxed.
Using the money from our money market account will this increase our tax liability?
I have been told our principal is not taxed again and only the interest made on the money market or gains/dividends etc. on the investments are taxed if we sell something.
Thanks,
ckw-jw51
