Tax Question - TIPs Mutual Funds
This question is for anyone who owns a mutual fund holding TIPS, like Vanguard's Inflation-Protected Securities Fund. When tax time comes do you get a 1099 showing both dividends paid and taxes owed on the undistributed inflation accretion? I assume you do but was curious how that was handled in a mutual fund. If you can somehow defer the tax on the accretion portion, the funds might be worthwhile. Otherwise seems like a bad deal compared with buying the bonds directly.
Retired early, traveling perpetually.