Message Font: Serif | Sans-Serif
No. of Recommendations: 1
EFTs can distribution capital gains and dividends.

Especially if the EFT or Mutual Fund only distributes dividends and capital gains once a year, then buying late in the year can have significant tax consequences.

Rather than saying you should never invest in Mutual Funds or EFTs at year-end, check the ex-dividend dates and history of the specific EFT or Mutual Fund.

Also, if the EFT or Mutual Fund is held in a retirement account, the timing of dividends and capital gain distributions have very limited tax consequences.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.