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Are muni bonds subject to AMT?

“Private activity” municipal bonds are subject to the federal alternative minimum tax. In 1986, the Tax Reform Act required that interest on private activity bonds (other than 501(c)(3) obligations) issued after August 7, 1986 be included in the calculation of AMT income for federal tax purposes.

Does Vanguard have a municipal bond fund?

This low-cost municipal bond fund seeks to provide a high level of federally tax-exempt income and typically appeals to investors in higher tax brackets….Fund facts.

Asset class Long-Term Bond
Fund advisor Vanguard Fixed Income Group

Is Optax tax free?

The Fund seeks tax-free income. The Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in securities the income from which, in the opinion of counsel to the issuer of each security, is exempt from regular federal individual and, as applicable, the Funds state income tax.

Are all municipal bond funds tax free?

Municipal bond funds are mutual funds that are made up of municipal bonds, which are debt instruments issued by a government entity. The earnings from municipal bonds are generally exempt from federal (and sometimes also state or local) taxes.

Is Optax a mutual fund?

OPTAX – Invesco AMT-Free Municipal Fund Class A | Fidelity Investments.

What are high yield municipal bonds?

What Are High-Yield Municipal Bonds? High yield munis are bonds issued by state or local governments. They are unrated by the major rating agencies; or, they have credit ratings that are below investment grade.

Are there any muni bond funds with no Amt?

I’ve made no attempt to sort through the many single-state muni bond funds. Funds range from zero AMT bonds to as much as 20%. I’ve identified 14 funds that have no AMT liability. Most of these explicitly list income free of alternate minimum tax as a fund objective. Blackrock (NYSE: BLK) has four national AMT-free CEFs:

Is the Invesco Oppenheimer Rochester Amt-free municipal income fund?

Share class returns will differ from the predecessor fund due to a change in expenses and sales charges. Effective September 30, 2020, Invesco Oppenheimer Rochester AMT-Free Municipal Fund was renamed Invesco AMT-Free Municipal Income Fund. An investment cannot be made directly in an index.

Which is the best Muni fund to invest in?

Other Gold-rated national muni funds on the list include Fidelity Intermediate Municipal Income ( FLTMX) and Fidelity Municipal Income ( FHIGX), which also stack up well versus the competition over the long haul. Elizabeth Foos does not own (actual or beneficial) shares in any of the securities mentioned above.

Which is the best ETF for municipal bonds?

The iShares National AMT-Free Muni Bond ETF (MUB) is the most popular municipal bond ETF with nearly $18 billion in assets. The fund seeks to track the S&P National AMT-Free Municipal Bond Index. This ETF is broadly diversified with over 4,400 individual holdings.