Incorrect setting for Tsumitate NISA distributions/dividends

[ToushiTime]

Hi,

I just noticed that a month or so ago, I accidentally set the 分配金コース (distribution/dividend setting) in my Rakuten Tsumitate NISA account to 受け取り (receive) instead of 再投資型 (reinvest) for one of my investments.

I have fixed it now, but what does that previous setting do?

Have I received those distributions untaxed in my tokutei kousa account?

I looked but couldn't find any.

[beanhead]

Shouldn't be any impact as there are probably no dividends being distributed anyway.
What product?

[ToushiTime]

Tawara No Load All World Equities

Yeah being a mutual fund would explain why I can’t find the distributions. I guess that choice of two settings was just there by default for other products

[TokyoBoglehead]

As distribution is impossible with tsumitate funds, SBI blocks this option...Rakuten is just "special" in it's own way.

[ToushiTime]

OK, thanks both of you

[ToushiTime]

As distribution is impossible with tsumitate funds, SBI blocks this option...Rakuten is just "special" in it's own way.

I double-checked. You can actually choose to receive the distribution from tsumitate, although I dunno why someone would want to. SBI hides the option, rather than blocks it.

It turns out you can choose to collect distributions from toushi shintaku.
https://site2.sbisec.co.jp/ETGate/WPLET ... etori.html

And you can even choose to receive distributions instead of reinvesting them for Tsumitate NISA
https://site2.sbisec.co.jp/ETGate/WPLET ... nvest.html

Unlike Rakuten, you can only select that option after you have made the first purchase, by going to the 保有証券 tab on the 円建口座 page.
https://faq.sbisec.co.jp/answer/5ee0439 ... 001220704c

And I just realized why I couldn't find the distributions from the Tawara No Load All World Equity fund in my Rakuten account. I made my first purchase in early July but this fund only provides distributions once a year according to the prospectus.

[TokyoBoglehead]

As distribution is impossible with tsumitate funds, SBI blocks this option...Rakuten is just "special" in it's own way.

I double-checked. You can actually choose to receive the distribution from tsumitate, although I dunno why someone would want to. SBI hides the option, rather than blocks it.

It turns out you can choose to collect distributions from toushi shintaku.
https://site2.sbisec.co.jp/ETGate/WPLET ... etori.html

And you can even choose to receive distributions instead of reinvesting them for Tsumitate NISA
https://site2.sbisec.co.jp/ETGate/WPLET ... nvest.html

Unlike Rakuten, you can only select that option after you have made the first purchase, by going to the 保有証券 tab on the 円建口座 page.
https://faq.sbisec.co.jp/answer/5ee0439 ... 001220704c

And I just realized why I couldn't find the distributions from the Tawara No Load All World Equity fund in my Rakuten account. I made my first purchase in early July but this fund only provides distributions once a year according to the prospectus.

Tsumitate *Nisa approved* funds internally reinvest, it's not a DRIP ala ETFs. Perhaps this is only possible with certain mutual funds which offer this option.

I have it selected for emaxis, there is no distribution.

[ToushiTime]

Tsumitate *Nisa approved* funds internally reinvest, it's not a DRIP ala ETFs. Perhaps this is only possible with certain mutual funds which offer this option.

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 have it selected for emaxis, there is no distribution.

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.

[TokyoBoglehead]

Tsumitate *Nisa approved* funds internally reinvest, it's not a DRIP ala ETFs. Perhaps this is only possible with certain mutual funds which offer this option.

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 have it selected for emaxis, there is no distribution.

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?

[ToushiTime]

Tsumitate *Nisa approved* funds internally reinvest, it's not a DRIP ala ETFs. Perhaps this is only possible with certain mutual funds which offer this option.

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 have it selected for emaxis, there is no distribution.

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.