Categories of sectors of bonds Taxable vs. tax-exempt bonds Most bonds are taxable, meaning the income that bonds produce is taxable. On the other hand, the income from tax-exempt bonds, like tax-exempt municipal bonds, may be exempt from Federal, state, and local taxes. ...
government, such as Treasury bonds and bills, as well as mortgage- and other asset-backed securities backed by the government. These funds may also invest in bonds issued by government-sponsored enterprises, such as Fannie Mae and Freddie Mac, that are not explicitly backed by the U.S. ...
Money market mutual funds are among the lowest-volatility types of investments. Income generated by a money market fund is either taxable or tax-exempt, depending on the types of securities in which the fund invests.Fidelity Learn What are money market funds? A money market mutual fund is a ...
sometimes rightly so. However, while high-yield munis pay tax-exempt interest and have the word "municipal" in their name, we wouldn't consider them "municipal" bonds in the traditional sense. For example, among the more unique issuers ...
Additionally, while green bonds are touted for benefits like exempting the shareholder from some tax burdens, this status can vary from instrument to instrument. Adding even more to the confusion is that there are now "social bonds" that sometimes get erroneously lumped into the green bond space...
Holders of the second class of interests, sometimes called the residual income certificates, are entitled to any tax-exempt interest received by the trust that is not payable to floating rate certificate holders, and bear the risk that the underlying municipal bonds decline in value. 17 Cash ...
There is an annual limit on the Social Security portion of FICA. The number changes each year, but in 2024, income over $168,600 is exempt from the Social Security tax. That means the most you'll pay this year for Social Security taxes as an employee is $10,453.20, or $168,600 mul...
Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI -0.12%) invests in tax-exempt, investment-grade, U.S. municipal bonds with maturities up to 20 years. Vanguard Core-Plus Bond ETF (VPLS -0.31%) provides broad exposure to U.S. investment-grade bonds. The portfolio includes government, ...