All Courses > Funds > 100
Funds 104: Taxes on Mutual Fund Income

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The _______ is what you earn when you sell mutual fund shares at a profit.
Choose wisely. There is only one correct answer.
Capital gain. The other two are earned when the fund, not you, makes a profit.
2.
Which IRS form reports withdrawals from retirement plans?
Choose wisely. There is only one correct answer.
1099-R. This form reports retirement plan withdrawals.
3.
An exchange of shares from one mutual fund to another in a fund family is a taxable event, except in the case of _______.
Choose wisely. There is only one correct answer.
Qualified retirement plans. Exchanges made within qualified retirement plans are tax-exempt.
4.
Which would you rather own in a taxable account?
Choose wisely. There is only one correct answer.
It depends on which is the better aftertax performer. If you're investing in a taxable account, it's wise to consider taxes when investing. However, don't let the tax tail wag the investment dog. What's most important is how much you keep after taxes, not how much Uncle Sam gets.
5.
Which of the following are not taxed?
Choose wisely. There is only one correct answer.
Capital losses. They are not income.