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1.
You may be taxed on a transfer between mutual funds because the IRS sees the transfer as a dividend.
False. You will be taxed on it because the IRS sees it as a capital gain, if one has been made.
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.
Which of the following are not taxed?
Capital losses. They are not income.
4.
Which of the following in a mutual fund is not taxable?
A mutual fund share. Only income is taxable.
5.
Which IRS form reports withdrawals from retirement plans?
1099-R. This form reports retirement plan withdrawals.