Mutual funds may be included in several different investment vehicles. One vehicle is often referred to as a nonqualified vehicle because it ________.

Question

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A nonqualified vehicle refers to an investment vehicle that does not provide tax advantages, unlike a qualified vehicle such as an IRA or 401(k). Mutual funds can be included in nonqualified vehicles such as taxable brokerage accounts, where the gains and income from the mutual funds are subject to taxes.

Mutual Funds May Be Included in Several Different Investment Vehicles