Mutual Fund Capital Gains Distributions: Frequently Asked Questions
In December of last year, many mutual funds made end-of-year capital gains distributions for the first time in several years.
Since investors have grown less accustomed to capital gains distributions, the distributions differ from the dividend or interest income investors usually receive, and capital gains distributions are specific to the special legal structure of mutual funds, investors may have questions about the distributions and their tax implications. To help answer these questions, LPL Financial Research has put together this guide to some frequently asked questions.
Keep in mind that the tax circumstances for every individual are unique. Please consult a tax expert for the implications of capital gains distributions for any individual investor.
A few weeks ago I attended the retirement party of someone I’ve called a dear friend for over 49 years. Long ago, we were both young financial advisors chasing similar career paths. We even migrated to independent businesses around the same time. His retirement prompted me to reflect with gratitude on all my opportunities and […]