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1.
Which of the following are not taxed?
Capital losses. They are not income.
2.
The _______ is what you earn when you sell mutual fund shares at a profit.
Capital gain. The other two are earned when the fund, not you, makes a profit.
3.
Which IRS form reports withdrawals from retirement plans?
1099-R. This form reports retirement plan withdrawals.
4.
Buying a mutual fund that has a very low turnover rate will reduce the number of _______.
Capital gains. A lot of turnover will likely result in a lot of capital gains, which are normally taxable. If you want to reduce taxes, consider low-turnover funds.
5.
When you exchange mutual fund shares from one fund to another in a fund family, it is a tax-free exchange.
False. An exchange is considered a sale and purchase for tax purposes, except in qualified retirement plans.
