What is the difference between a long-term gain and a short-term gain?
Long-term gains are gains on securities that are held by the fund for more than 12 months. Long-term capital gains are taxed at long-term capital gains rates. Short-term gains are gains on securities that are held for one year or less. Short-term gains are taxed as ordinary income at the taxpayer’s appropriate ordinary income tax rate. Ordinary income tax rates are generally higher than long-term capital gains rates. Shareholders should consult a tax advisor to determine the tax implications for their situation. If you have questions about your individual situation, contact your plan administrator or a personal advisor, such as an accountant, attorney or other tax professional.
