03.13.25

Bill To Change Mutual Fund Tax Rules Introduced in House

by: Brian Croce

A bipartisan bill to change the way mutual fund investors’ capital gains distributions are taxed has been introduced in the U.S. House. The measure would defer taxation of automatically reinvested capital gains distributions until shareholders actually sell their fund shares. Currently, mutual funds must distribute any dividends and net realized capital gains earned on their holdings over the prior year. The distributions are taxable income even if the money is reinvested in shares in the fund.

Read the full article on Pensions & Investments