If you were hit with a significant tax burden as a result of Vanguard’s sell-off of large amounts of assets in target-date retirement funds, you aren’t alone. You may have options for holding Vanguard accountable and recovering damages.
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What We Know About Vanguard’s Target Date Retirement Fund Tax Scandal
- The Wall Street Journal reported in January 2022 that Vanguard paid out huge capital gains distributions to investors – including investors who held the funds in non-tax advantaged accounts, such as 401Ks or IRAs.
- These payments triggered massive and unexpected tax bills that could have been avoided had Vanguard advised that investors hold these funds in tax-advantaged retirement accounts.
- In March three investors in Vanguard’s target-date fund filed a lawsuit in Pennsylvania claiming Vanguard breached its legal duties by selling off large amounts of assets which triggered hundreds of millions in tax burden for investors across the country.
- In July Vanguard paid over $6M in response to an investigation by Massachusetts regulators. Vanguard established a $5.5 million fund to pay restitution to harmed investors in MA.
If you held Vanguard target-date retirement funds in a taxable account, we believe you have a valid legal claim to recover damages. Call Sonn Law Group at 844-689-5754 or complete this short form. Our investment loss attorneys work on a contingency fee basis, which means you only pay if we make a recovery for you.