Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Income from municipal bond mutual funds may be taxable on the state level.
True. In some cases, they are taxable on the state level.
2.
When is the worst time to buy a fund, from a tax standpoint?
Right before a fund makes a distribution. If you buy a fund just before it makes a distribution, you'll pay taxes on that distribution, even though you haven't enjoyed any of the appreciation that led to that distribution.
3.
An exchange of shares from one mutual fund to another in a fund family is a taxable event, except in the case of _______.
Qualified retirement plans. Exchanges made within qualified retirement plans are tax-exempt.
4.
Capital gains distributions are taxed at your ordinary income tax rate.
False. They are taxed at either the short-term or the long-term rate, whichever is applicable.
5.
Which IRS form reports withdrawals from retirement plans?
1099-R. This form reports retirement plan withdrawals.
