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Conference nyoss1::market_investing

Title:	Market Investing

Moderator:	2155::michaud

Created:	Thu Jan 23 1992
Last Modified:	Thu Jun 05 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1060
Total number of notes:	10477

914.0. "Fed tax-free money mkt fund and MASS tax" by TUXEDO::RIAZ () Mon Sep 11 1995 11:03

    I'm planning to open a tax-exampt money market fund. Does anyone know
    if the location of the fund have any impact on the MASS state tax? That
    is to say, do I pay any less MASS taxes if the Bank or Mutual Fund 
    company that provides the Money Market fund is located inside or 
    outside of MA (regarding paying the taxes on the dividend income)?
    
    A secondary question: Does anyone know of a good MASS TAX-FREE 
    money market fund (which in that case I don't have to worry about the 
    question above!). Some fund companies offer CA or NY tax-free MM but
    I don't know of any MA tax free one.
    
    Thanks,
    Riaz

T.R	Title	User	Personal Name	Date	Lines
914.1	I believe Fidelity has a MA tax-free fund	NETRIX::michaud	Jeff Michaud, That Group	`Mon Sep 11 1995 11:20`	0
914.2	Dreyfus	PCBUOA::GLANTZ		`Mon Sep 11 1995 13:55`	2
	Dreyfus offers two MA tax-free money market funds
914.3	Detail on FIDO	MSBCS::BMORRISON		`Mon Sep 11 1995 14:34`	5
	The Fidelity Tax Free Money Market Funds have no sales charge. There is a minimum investment of $5,000 and subsequent minimums of $250. The dividend is monthly with a capital gain distribution annually.
914.4	location doesn't matter	NOTAPC::LEVY		`Mon Sep 11 1995 15:11`	4
	re: .0 Regarding your first question, the location of the fund company is irrelevant wrt MA income tax liability.
914.5		ZENDIA::FERGUSON	Dry your eyes on the wind	`Tue Sep 12 1995 09:02`	3
	Scudder also. I had both dreyfus and scudder, and scudder outperformed dreyfus. this was in the '89-'93 timeframe.
914.6	Mass Free Funds Aren't Worth the Trouble	GLRMAI::WILKES		`Tue Sep 12 1995 10:51`	9
	My experience is that the yield on Mass Free Funds is sufficiently lower than the yield on general purpose Muni Bond Funds from Vanguard, to offset any savings from having to pay Mass taxes on the Vanguard Fund. Massachusetts has I believe the third highest bonded indebteness of the 50 states. If we ever have some "Orange County" like event in Mass., Mass Tax Free Funds could get hit hard.
914.7		NOTIME::SACKS	Gerald Sacks ZKO2-3/N30 DTN:381-2085	`Thu Oct 12 1995 15:58`	2
	Nit: I believe all Mass tax-free funds have varying NAV (net asset value), so they're not called "money market funds."
914.8		AIAG::WEISSMAN		`Fri Oct 13 1995 17:25`	5
	re -1 not true - Fidelity has 2 Mass. tax free money market funds (one is a Spartan fund) - both of them have stable NAV's of $1 a share (although there is fine print about this not being guaranteed)
914.9	Dreyfus too	PCBUOA::GLANTZ		`Fri Oct 13 1995 17:35`	1
	And Dreyfus has two MA tax-free money market funds as well