Is it the funds or the cash that gets transferred to the taxable account??

[sutebayashi]

As an aside, would I be correct in assuming that most people who intend to reinvest their funds that are coming out of the old NISA into the new one are doing the same thing as I am: selling the old NISA funds within the year and then buying funds in the new NISA next year?

Seems like the best approach to me to ensure that there will be no taxable event.

I typically do a kakutei shinkoku each year, so I personally am used to dealing with taxes. I would prefer to minimize taxes due though, of course.

Realizing extra income does has the nice side effect of increasing how much furusato nozei one can get away with. So a taxable event is not the end of the world.

With respect to funds for 2024 NISA, I have not sold my equities related funds in my 2019 NISA, so they will move to my taxable account next year.

My current thinking (and I am still pondering this) is not to sell my taxable account holdings in a hurry early next year, either. I am going to start 2024 nisa slow and steady, doing tsumitate nisa for my usual monthly equity fund purchases, and maybe the growth part too.

Ideally, if there is a stocks bear market next year (or further reprieve for the yen, for I am mostly in foreign assets), then I would be able to sell some taxable account assets for a yen loss even, instead of a yen profit. Such a loss would also be excellent - no need to pay tax on a loss, and that loss could also be used to offset any realized profits. (I don’t know if I can manage to muster a loss without a big market crash, but even just reduced profits would be fine, from a tax minimization purpose.)

If there is no bear market, then I could just fill up the nisa with new money, and that will look good on paper too, and no taxable profits realized.

The other angle here is, I don’t won’t to spend time out of the market if migrating funds from taxable to nisa - it would suck if the market had say a 3% jump while our sale was getting settled, before we re-buy. So, whether it be via Toshin, or ETFs, I am going to aim to make any taxable sales and nisa repurchases on the exact same day.

I emphasize that my goal is only to attempt to minimize my tax burden, not to time the market, as I do this. I don’t expect I will minimize tax burden perfectly (or even at all), since that does involve market timing… if that makes sense. But I’m going to guess that Jan 2nd 2024 is not going to be the lows of the 2024 market… if I am wrong there, I will at least not realize any taxable profits.

[MyTime]

I'm going to wait until the funds move into taxable to avoid issues with selling the wrong ones, etc.

Well, if even you have concerns about that, then I think it would be best for me to do the same and wait till next year to sell the funds.

Since it's quite a large sum, it would a nightmare to sell the wrong units by mistake.

[beanhead]

Since it's quite a large sum, it would a nightmare to sell the wrong units by mistake.

This makes sense. This 'days out of the market' concern is a minor risk, in my opinion.

Sell.
Buy again.
Don't think too much about the price and move on...