Assertion: fund's distribution | /r/HasProperty | exempt
Facets:
value: from federal income tax
type: OTHER
value: under rule
type: OTHER
Source sentences:
text: A fund with a name that suggests that its distributions are exempt from both federal and state income tax, e.g., the Maryland Tax-Exempt Fund, must have a fundamental policy to invest, under normal circumstances, either:
text: Q: The SEC recently adopted rules that require a mutual fund to include standardized after-tax returns in advertisements and sales literature that include any quotation of performance and that represent or imply that the fund is managed to limit or control the effect of taxes on fund performance.5 Advertisements and sales literature for a fund that is eligible to use a name suggesting that its distributions are exempt from federal income tax or both federal and state income tax under rule 35d-1 are not, however, required to include standardized after-tax returns, unless they voluntarily choose to include after-tax performance
text: The requirements set forth in rule 35d-1(a)(4) for a fund that has a name suggesting that its distributions are exempt from federal income tax are generally the same as those currently applied by the Division of Investment Management.
text: Although funds are not required to comply with rule 35d-1 until July 31, 2002, any fund that relies on the exception for tax-exempt funds from the after-tax return advertising rule at any time must comply with the eligibility requirements under rule 35d-1(a)(4) for using a name suggesting that the fund's distributions are exempt from federal income tax or from both federal and state income tax.
text: As a practical matter, this means that, prior to July 31, 2002, in order to rely on the exception for tax-exempt funds from the after-tax return advertising rule, a tax-exempt fund, including a single state tax-exempt fund, need only comply with the eligibility requirements under rule 35d-1(a)(4) for using a name suggesting that the fund's distributions are exempt from federal income tax.