Incorrect setting for Tsumitate NISA distributions/dividends

[TokyoBoglehead]

I was under that impression that too, until I checked yesterday.
Internal reinvestment is not the only option, even for Tsumitate NISA-approved eMaxis funds. See the second link above. The distributions are untaxed under Tsumitate NISA and you have three options: reinvest them in your Tsumitate NISA account, reinvest them under your tokutei account, or just receive them (presumably as cash into your sogo account). Again, I don't know why anybody would want the 2nd and 3rd options.


I don't know what you mean by "it", and I am not sure which eMaxis you have, but the left column of the eMAXIS Slim 全世界株式(オール・カントリー) page on SBI shows
分配金受取方法
金額：受取または再投資 (receive or reinvest)
https://site0.sbisec.co.jp/marble/fund/ ... rch_result

The distribution 分配金 for that eMaxis fund is paid once a year, according to the prospectus.
SBI has a list of mutual funds from which you cannot opt to receive distributions.
https://search.sbisec.co.jp/v2/popwin/i ... ketori.pdf

BTW, which brokerages offer DRIP/automatic reinvestment, other than reinvestment of mutual fund distributions?
The only one I could find was Monex for US ETFs.

Can you please link a source that shows these dividends being paid out at any time? All sources seem to state dividends are calculated annually, but reinvested in the fund. I see no records or distributions with emaxis funds.

Many people on this forum have accidentally checked "distribution course" with Rakuten for emaxis funds. Over the years no distribution has been made.

....

ETF drips...Monex is the only one I know but I think Shintaro Money may have mentioned another. Matsui possibly?

The links I gave you from SBI show we have an option of receiving distributions from funds, including Tsumitate NISA funds, instead of reinvesting them. If they are not reinvested, and are received instead, by definition that means paid out.
https://site2.sbisec.co.jp/ETGate/WPLET ... etori.html
https://site2.sbisec.co.jp/ETGate/WPLET ... nvest.html


If other people on here have accidentally ticked "receive" but have not received anything, I can't explain that.
They could be like me and have rectified their wrong setting before the annual payment was due, or they didn't find the payment record, or the fund didn't make enough to pay a distribution, which the eMaxis prospectus mentions is possible.
eMaxis is not listed as one of the funds that does not allow you to receive the distribution
https://search.sbisec.co.jp/v2/popwin/i ... ketori.pdf

Thanks for the Matsui lead. I'll check it out.

I'm going to have to disagree here...

https://akademeia.info/?p=8617


つみたてNISAでは受取型から再投資型に変更できないとして、どういう対応を取るべきか
選択肢①…次回から再投資型を買う
選択肢②…そのまま受取型のまま積み立てる
どの選択肢を選んでも構いません。

選択肢①を選ぶと、ポートフォリオの行が増えてしまいますが、それさえ気にしなければそれでよいでしょう。

つみたてNISAで買えるファンドのほとんどは再投資型でも売取型でも実質的に変わりがありません。よって、選択肢②でも通常は問題ありません。

避けるべき選択肢は、気持ちが悪いからといって、受取型で積み立ててきたファンドを売ってしまうことです

例外的に、積立し始めて1,2ヶ月しか経っていなければ、間違えたファンドを売却してしまい表示をきれいにするのもありでしょう（20年間気持ち悪い感じを受けるぐらいであれば）。

What should we do if we are not allowed to change from a pay-as-you-go type to a reinvestment type in a savings NISA?
Option 1...Buy reinvestment type next time
Option 2: Continue to accumulate the same amount as the payout type
It does not matter which option you choose.

If you choose Option 1), the number of lines in your portfolio will increase, but if you do not mind that, it is fine.

Most of the funds that can be purchased through the NISA are essentially the same whether they are reinvested or sold. Therefore, option (2) is usually fine.

The alternative you should avoid is to sell the funds you have accumulated in the Receivable type just because you feel bad about it.

The exception to this is if you have only been accumulating for a month or two, you may be able to sell the wrong fund and clean up the display (if only enough to feel sick for 20 years).
Translated with DeepL https://www.deepl.com/app/?utm_source=a ... ranslation

[ToushiTime]

I'm going to have to disagree here...

https://akademeia.info/?p=8617


つみたてNISAでは受取型から再投資型に変更できないとして、どういう対応を取るべきか
選択肢①…次回から再投資型を買う
選択肢②…そのまま受取型のまま積み立てる
どの選択肢を選んでも構いません。

選択肢①を選ぶと、ポートフォリオの行が増えてしまいますが、それさえ気にしなければそれでよいでしょう。

つみたてNISAで買えるファンドのほとんどは再投資型でも売取型でも実質的に変わりがありません。よって、選択肢②でも通常は問題ありません。

避けるべき選択肢は、気持ちが悪いからといって、受取型で積み立ててきたファンドを売ってしまうことです

例外的に、積立し始めて1,2ヶ月しか経っていなければ、間違えたファンドを売却してしまい表示をきれいにするのもありでしょう（20年間気持ち悪い感じを受けるぐらいであれば）。

What should we do if we are not allowed to change from a pay-as-you-go type to a reinvestment type in a savings NISA?
Option 1...Buy reinvestment type next time
Option 2: Continue to accumulate the same amount as the payout type
It does not matter which option you choose.

If you choose Option 1), the number of lines in your portfolio will increase, but if you do not mind that, it is fine.

Most of the funds that can be purchased through the NISA are essentially the same whether they are reinvested or sold. Therefore, option (2) is usually fine.

The alternative you should avoid is to sell the funds you have accumulated in the Receivable type just because you feel bad about it.

The exception to this is if you have only been accumulating for a month or two, you may be able to sell the wrong fund and clean up the display (if only enough to feel sick for 20 years).
Translated with DeepL https://www.deepl.com/app/?utm_source=a ... ranslation

This bit in your link backs up your suggestion:

eMAXIS Slim 米国株式（S&P500）の目録書を見ると「分配ができる」と書いてありますが、実際には分配金を出していません。

i.e. the prospectus for eMaxis Slim S&P500 says the fund can make distributions but it doesn't actually do so.

If that is true, why would SBI go to such efforts to explain how Tsumitate NISA investors can choose between receive or reinvest?
Scroll down to 預り区分別の分配金受取方法早見表（NISA口座） on this page
https://site2.sbisec.co.jp/ETGate/WPLET ... nvest.html

I'm baffled. Do any of these NISA funds actually pay distributions?

[zeroshiki]

Those funds don't distribute. Theoretically they could but tawara no load, for example of a fund that's old, has never done a distribution.
https://itf.minkabu.jp/fund/4731B15C/allotment_cont

You are arguing a distinction without a difference.

[ToushiTime]

Edited

[TokyoBoglehead]

Those funds don't distribute. Theoretically they could but tawara no load, for example of a fund that's old, has never done a distribution.
https://itf.minkabu.jp/fund/4731B15C/allotment_cont

I get that most don't but surely enough of them do for sites to provide explanations like this? If no Tsumitate NISA funds did, that would be very odd.
This is from Feb 2023 and states that some Tsumitate NISA funds pay once a year. It even talks about the timing of when the distribution is paid.

つみたてNISAの分配金はいつ受け取れるか

「受取コース」を選択した場合、つみたてNISAの分配金がどのタイミングで受け取れるのか、気になる方もいるでしょう。

実は、つみたてNISAの商品の中には「毎月分配型」の投資信託は含まれていません。つみたてNISAの目的は「長期投資」です。毎月分配型の投資信託は、その目的に則していないため、取り扱われていないと考えられます。そのため、1年に1度などの長い期間での分配のみとなります。

一般的に投資信託の分配金は、決算日から5営業日以降に受け取れます。ただし、証券会社によって入金のタイミングは異なるため注意が必要です。事前に確認しておきましょう。

https://www.sonylife.co.jp/land/blog/co ... #section03

MUFG goes in to the merits and disadvantages of receiving vs reinvesting distributions from Tsumitate NISA funds:
https://www.bk.mufg.jp/column/shisan_unyo/b0150.html

SBI: https://site2.sbisec.co.jp/ETGate/WPLET ... nvest.html

The Sony explanation is boilerplate. It says specifically to check with your broker to see if such funds are even available.

Basically, these explanation were either:

A. Copy and pasted from previous non-nisa tsumitate guides.

B. Created with the understanding that distribution style funds might may be approved in the future.

C. There are a few rarer distribution funds that none of us of have come across.

[ToushiTime]

The Sony explanation is boilerplate. It says specifically to check with your broker to see if such funds are even available.

Basically, these explanation were either:

A. Copy and pasted from previous non-nisa tsumitate guides.

B. Created with the understanding that distribution style funds might may be approved in the future.

C. There are a few rarer distribution funds that none of us of have come across.

I rewrote that comment after reading this : almost all funds (not all) can but don't give distributions.
ただ、多くの投資信託の目論見書には「分配を行わないことがあります」とあり、実際には分配金を出していない投資信託がほとんどです。
「eMAXIS Slim」や「iFree」「たわらノーロード」など、低コストなインデックス型の投資信託は本稿執筆時点までで分配金の実績はありません。
https://diamond.jp/zai/articles/-/285223

I don't see any evidence for A or B.
I agree with you on C. There must be a few that provide distributions, otherwise it would be very odd for pages such as these below to go into the pros and cons or receiving vs reinvesting the distributions.


Monex goes into the pros and cons of receiving vs reinvesting Tsumitate NISA distributions.
https://info.monex.co.jp/nisa/tsumitate ... tml#page02
MUFG
https://www.bk.mufg.jp/column/shisan_unyo/b0150.html
SBI
https://site2.sbisec.co.jp/ETGate/WPLET ... nvest.html
Sony Blog
https://www.sonylife.co.jp/land/blog/co ... #section03

[ToushiTime]

I think it’s clear the mentioned fund has no dividends paid out.

As to the ‘why’ of paying out the dividend or reinvest into tokutei:
Because the reinvestments count towards the annual maximum. If you reinvest into NISA, you need to do manual adjustment. Just easier to have it sent to cash.

Ie, you pay 100k every month, get 50k dividend and reinvest, the annual total paid in amount would be 1,250,000 exceeding the 1.2m limit by 50k, so in Dec 50k would go into tokutei unless you adjust the dec amount manually to 50k.

This isn’t theory, this is what happened to me. So all dividends go into my cash account

Interesting. Am I understanding you correctly? You are talking about mutual funds? Which ones?

[RetireJapan]

As to the ‘why’ of paying out the dividend or reinvest into tokutei:
Because the reinvestments count towards the annual maximum. If you reinvest into NISA, you need to do manual adjustment. Just easier to have it sent to cash.

This is a bit unclear. Dividends reinvested internally do not count towards the NISA or iDeCo contribution limits.