This is annoying. Today I got a letter saying the municipal market fund that I sweep spare cash to is going away. The SEC has changed a bunch of rules to allow the fund to charge various liquidity fees in times of stress.
I found this info on it:
https://www.fidelity.com/bin-public...y-market-reform-communication-august-2014.pdf
I don't really understand why the fund has to go away but it is. This is really annoying because after conversions the marginal tax rate for income jumps to 30% and then 35% (after a very small window and the child tax credit phasing out) for me so hiding any kind of income is important.
I try not to keep to much cash and of course interest rates are terrible currently but I do have quite a bit of cash this year to pay my last year of working taxes. I do like to only buy new stuff when I have > $5k in spare cash to lower transaction costs.
Anyone understand why this funds are for the chop?
I found this info on it:
https://www.fidelity.com/bin-public...y-market-reform-communication-august-2014.pdf
I don't really understand why the fund has to go away but it is. This is really annoying because after conversions the marginal tax rate for income jumps to 30% and then 35% (after a very small window and the child tax credit phasing out) for me so hiding any kind of income is important.
I try not to keep to much cash and of course interest rates are terrible currently but I do have quite a bit of cash this year to pay my last year of working taxes. I do like to only buy new stuff when I have > $5k in spare cash to lower transaction costs.
Anyone understand why this funds are for the chop?