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Module 1 — Harvest & Rotation →
Stock Program
Phase A Advanced · Module 2 · Video 2.2

Dividend Tier & Account Location

Map every dividend holding to its tier and its optimal account, then read the mismatches. This is the capstone exercise from the 60/30/10 Framework.

60 / 30 / 10 targets
Account location
Tier-1 3-leg test
How to use this worksheet Open / close
How to use it
  • Add one row per dividend holding.
  • Enter instrument type, current yield, payout ratio, dividend growth rate, tier, position value and current account.
  • Enter yield, payout and growth as percentages — type 5 for 5%.
  • Read the summary: your tier split against the 60/30/10 target, blended yield, and how many holdings need a placement fix.
What the flags mean
  • Recommended Account — growers and aristocrats to a Roth IRA; REITs and covered-call ETFs to a Traditional IRA; MLPs taxable ONLY (UBTI); everything else taxable OK.
  • Placement Check — OK when your account matches the recommendation, otherwise it names the fix. "FIX: MLP → Taxable only" is the one that catches everyone.
  • Tier-1 3-leg check — for Tier 1 holdings, confirms a payout ratio under 60% and a positive dividend growth rate.
  • Tier 3 over 10% — flagged when your high-risk tier has drifted past its hard cap.
Reminders from the video
  • For REITs use FFO/AFFO, and for MLPs use distributable cash flow — an earnings-based payout ratio misleads for those structures.
  • MLPs generate UBTI. Keep them out of ALL IRAs, including Roths.
  • The 1099-DIV guide below decodes how each type of distribution is taxed.
Total portfolio value
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Sum of position values
Blended yield
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Value-weighted across holdings
Placement fixes needed
{{ fixCount }}
Rows reading FIX or Consider
Tier 3 cap
{{ tier3Pct }}
{{ tier3Flag }}
Tier split

Your mix against the 60 / 30 / 10 target

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Target {{ tier.targetLabel }}
{{ tier.pctLabel }}
{{ tier.valueLabel }}
{{ tier.deltaLabel }}
Holdings

Tier & Account Map

Cream fields are yours to fill. Enter yield, payout and growth as percentages. For REITs use FFO/AFFO; for MLPs use distributable cash flow.
Position / Ticker
Instrument Type
Yield
Payout
Growth
Tier
Value ($)
% of Portfolio
Current Account
Placement Check
Tier-1 3-leg Check
{{ row.pctPortfolio }}
{{ row.placement }} Recommended: {{ row.recommended }}
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% of portfolio{{ row.pctPortfolio }}
Recommended account{{ row.recommended }}
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Reference

1099-DIV — Box-by-Box Guide

How the distributions from your dividend holdings are taxed. Educational only — not tax advice.

Box
What it is
How it's taxed
Common in
1a
Total ordinary dividends
Taxed at your ordinary income rate (up to 37%) unless part of it is qualified (Box 1b).
REITs, BDCs, preferreds
1b
Qualified dividends
Lower 0/15/20% rate — but ONLY if you meet the 60-day holding rule (121-day window around the ex-date).
Aristocrats, quality dividend growers
2a
Total capital gain distributions
Taxed at long-term capital gains rates.
Some funds / ETFs
3
Nondividend distributions (Return of Capital)
Not taxed this year — instead it REDUCES your cost basis. You pay later (bigger gain) when you sell.
Covered-call ETFs, some MLP-style funds
5
Section 199A dividends
REIT dividends eligible for the 20% QBI deduction in a taxable account (subject to current law).
REITs
7
Foreign tax paid
May be reclaimable via the Foreign Tax Credit in a TAXABLE account — the credit is LOST inside an IRA.
International dividend payers
MLPs

MLPs do NOT issue a 1099-DIV — they send a Schedule K-1, and can generate UBTI if held in an IRA. Keep MLPs in a taxable account only.

Covered-call ETFs

Covered-call ETF distributions often blend option income (ordinary) with return of capital (Box 3) — read the fund's year-end tax breakdown.

Compliance

This tool is for educational purposes only and does not constitute tax, financial, or legal advice. Tax loss harvesting applies to taxable brokerage accounts only. Tax rules referenced reflect US federal law and are subject to change; state treatment varies. Figures and flags are illustrative — always consult a qualified tax professional before executing any transaction.

Account-location and UBTI rules are fact-specific and subject to change. All entries stay in your browser and are never transmitted to or stored by Decentralized Masters. Use "Clear all data" to remove them.