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A Problem with Taxation of Mutual Funds Is

Question 77

Multiple Choice

A problem with taxation of mutual funds is


A) Professional management.
B) The possibility to eliminate taxes if held in a Roth individual retirement account.
C) Being required to report reinvested income dividends and capital gain distributions on your federal tax return as current income.
D) Tax deferral if the fund is held in a retirement account like a 401(k) account.
E) The diversification offered to investors.

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