I have two related questions.
With all the Fidelity money markets funds, this gets confusing. I am looking for a national muni (tax-exempt) money market fund at Fidelity. It appears that with less than $25,000 the appropriate one is Fidelity Municipal Money Market Fund symbol FZEXX and with over $25,000 (less than $1M), it is Fidelity Tax-Exempt Money Market Fund Premium Class symbol FZEXX. Is this correct? Why does Fidelity call FTEXX "Municipal" and FZEXX "Tax-Exempt"?
If someone has a 32% marginal tax rate and 19.74% effective tax rate (no state), which do you use to determine if it is more beneficial to be in a taxable or tax-exempt money market? Using the below financial calculator, with the yields today on Fidelity's taxable and tax-exempt money market funds (5.14% for Fidelity Money Market Fund Premium Class FZDXX and 3.68% for Fidelity Tax-Exempt Money Market Fund Premium Class FZEXX), if I use the 19.74% effective rate, it seems better to be in FZDXX. But if I plug in the marginal tax rate of 32%, it is better to be in FEZXX.
https://www.fncalculator.com/financialc ... Calculator
Thank you.
With all the Fidelity money markets funds, this gets confusing. I am looking for a national muni (tax-exempt) money market fund at Fidelity. It appears that with less than $25,000 the appropriate one is Fidelity Municipal Money Market Fund symbol FZEXX and with over $25,000 (less than $1M), it is Fidelity Tax-Exempt Money Market Fund Premium Class symbol FZEXX. Is this correct? Why does Fidelity call FTEXX "Municipal" and FZEXX "Tax-Exempt"?
If someone has a 32% marginal tax rate and 19.74% effective tax rate (no state), which do you use to determine if it is more beneficial to be in a taxable or tax-exempt money market? Using the below financial calculator, with the yields today on Fidelity's taxable and tax-exempt money market funds (5.14% for Fidelity Money Market Fund Premium Class FZDXX and 3.68% for Fidelity Tax-Exempt Money Market Fund Premium Class FZEXX), if I use the 19.74% effective rate, it seems better to be in FZDXX. But if I plug in the marginal tax rate of 32%, it is better to be in FEZXX.
https://www.fncalculator.com/financialc ... Calculator
Thank you.
Statistics: Posted by Anovice — Fri May 24, 2024 2:31 pm — Replies 0 — Views 67