SAMPLE 6 – My revisions
Your federal income tax treatment will vary depending on the type of distribution you receive from the Fund.
- Not subject to tax. Generally, your dividends will not be subject to federal income tax if they come from interest the Fund earns from tax-exempt securities like municipal bonds.
- Ordinary income. If the Fund distributes net interest income derived from sources other than tax-exempt securities, or distributes short-term capital gains, those amounts will be taxable to you as ordinary income.
- Long-term capital gains. Net long-term capital gain distributions, if any, will be taxable to you as long-term capital gain, regardless of how long you have owned your Fund shares.