issuer credit risk and inflation risk. the municipal market can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. leverage can increase market exposure and magnify investment risk. income exempt from federal income tax may ...
and New York,you should know that in 2023 neither Fidelity Government Money Market Fund (SPAXX) nor Fidelity® Treasury Money Market Fund (FZFXX) met the minimum investment in U.S. government securities required to exempt the distribution from tax in California, Connecticut, and New York. ...
The income from Treasury bonds has preferential tax treatment. It is exempt from state and local taxes, but not federal income taxes. Repurchase agreements, as investments held by SPAXX and FZSXX are not exempt from state and local taxes. Therefore, SPAXX and FZSXX and other money market fu...
Perhaps Fidelity noticed this activity as well, or perhaps they noticed certain 5% APY cash offerings from competitors, because in less than two months (June 15, 2024), the CMA is adding the Fidelity Government Money Market Fund (SPAXX) an a core position option. If you have a Fidelity Ca...