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Mutual Fund Distributions: How Dividend Distributions Are Taxed

TedTed
in The Bullpen
FYI: Mutual funds are required by law to pass on any income they receive – whether it’s interest from a bond or dividends from a stock – to shareholders in the form of a dividend distribution.

Income received from a mutual fund is generally taxable at the shareholder’s ordinary income tax rate, the notable exception being if the account is held within a tax-advantaged vehicle such an IRA or 401(k), where distributions are tax-deferred or tax-free. Dividend distributions are not, however, always straightforward. Understanding how they break down and how they’re taxed is important to not send too much to Uncle Sam at tax time.
Regards,
Ted
http://mutualfunds.com/taxation/mutual-fund-distributions-how-dividend-taxed/?utm_source=MutualFunds.com&utm_campaign=5e4b71eea6-Dispatch_Weekend_Engage+01_04_2017&utm_medium=email&utm_term=0_83e106a88d-5e4b71eea6-290921629&goal=0_83e106a88d-5e4b71eea6-290921629
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