Westcore Tax and IRA Information


Westcore has compiled the following information to assist you with tax preparation and IRA planning.

Here you will find 2016 tax information specific to Westcore shareholders.

Qualified Dividend Income Information

Dividends received from domestic corporations, including mutual funds, and certain foreign corporations are deemed qualifying dividends if the security on which the distribution is received is held for a minimum period of time. Westcore Funds will report to its shareholders the amount of qualifying dividends paid in 2016 in box 1b of Form 1099-DIV. You should consult a tax adviser to determine how much of that amount qualifies for the reduced rates based on your specific tax situation.

Of the Westcore Funds that paid dividends in 2016 the percentage of the dividends that qualify for the reduced tax rate deduction are:

Westcore Global Large-Cap Dividend Fund: 100.00%

Westcore Large-Cap Dividend Fund: 43.53%

Westcore Mid-Cap Value Dividend Fund: 100.00%

Westcore Small-Cap Value Dividend Fund: 94.03%

Westcore Micro-Cap Opportunity Fund: 100.00%

Westcore International Small-Cap Fund: 100.00%

Westcore Flexible Income Fund: 2.13%

Westcore Plus Bond Fund: 1.24%

 

Corporate Dividend Received Deduction Information

Corporate shareholders may be eligible for a deduction as a result of receiving ordinary dividends. For eligible corporations, the percentage of dividends paid in 2016 by Funds in the Westcore family that have already received distribution reporting from all securities, following are those that qualify for the corporate dividends received deductions.

Westcore Global Large-Cap Dividend Fund: 76.54%

Westcore Large-Cap Dividend Fund: 41.67%

Westcore Mid-Cap Value Dividend Fund: 100.00%

Westcore Small-Cap Value Dividend Fund: 93.63%

Westcore Micro-Cap Opportunity Fund: 100.00%

Westcore Plus Bond Fund: 0.13%

State Tax Information

The following information is provided to assist you in preparing your 2016 state income tax return.

The amount shown on your Form 1099-DIV in Box 1a may include income derived from U.S. Treasury obligations of the U.S. Government. Such income may be tax-exempt in your state. The percentages of the totals derived from such obligations and the percentage of assets invested in direct U.S. Government Obligations as of December 31, 2016 are presented in the chart below:

Westcore Fund Percent of Total in Box 1a of Form 1099-DIV Derived from U.S. Treasury Obligations as of 12/31/2016 Percent of Assets Invested in Direct U.S. Government Obligations as of 12/31/2016
Westcore Plus Bond Fund 7.94% 7.87%

For those shareholders who may be required to pay an intangible or personal-property tax, the last column indicates the percentage of assets held in direct U.S. Government Obligations on December 31, 2016. It is important to keep in mind that each state has its own policies that govern tax exemptions and liability. If you have any questions about the application of this information to your tax returns, please consult a tax adviser.

More detailed information regarding U.S. Government obligations held in the Westcore Funds is presented below:

Percent of Ordinary Income Earned from Government Investments

   Direct Obligations: Indirect Obligations:    
Westcore Fund Treasury Income as a Percent of Box 1a Federal Home Loan Mortgage Corp. as a Percent of Box 1a Federal National Mortgage Association as a Percent of Box 1a Government National Mortgage Association as a Percent of Box 1a
Westcore Plus Bond Fund 7.94% 7.29% 15.77% 0.13%

Important Information for Residents of California, Connecticut and New York:

The Westcore Plus Bond Fund did not meet the threshold for federal obligations in 2016.

Westcore Colorado Tax-Exempt Fund 2016 Dividend Information

  • The dividends paid by the Westcore Colorado Tax-Exempt Fund in 2016 were 94.29% exempt from federal taxation.
  • 99.57% of the tax-exempt dividends paid by the Westcore Colorado Tax-Exempt Fund in 2016 are exempt from state income taxes for shareholders who are residents of the state of Colorado.
  • None of the distributions paid by the Westcore Colorado Tax-Exempt Fund in 2016 are subject to the Federal Alternative Minimum Tax.
Please note that this information should not be construed as investment advice nor is it intended as a substitute for individual tax or legal advice. For information or advice specific to your situation please contact an investment or tax professional.

Here you will find general tax information applicable to mutual fund shareholders.

Taxation of Dividends

For 2016, ordinary income and short-term capital gains are taxed at the shareholder’s marginal income tax rate with a maximum of 39.6%. A mutual fund will report to its shareholders the amount of ordinary income and short-term capital gain distributions in Box 1a of Form 1099-DIV.

The tax rate assessed on certain “qualifying dividends” is 0%, 15% or 20% based upon income. Dividends received from domestic corporations, including mutual funds, and from certain foreign corporations are deemed qualifying dividends if the security on which the distribution is received is held for a minimum period of time. A mutual fund will report to its shareholders the amount of qualifying dividends paid in a calendar year in Box 1b of Form 1099-DIV. You should consult a tax adviser to determine how much of that amount qualifies for the reduced rates based on your specific tax situation.

Taxation of Capital Gains

For 2016, the top tax rate on net long-term capital gains is 20%. A mutual fund will report to its shareholders the amount of capital gain distributions in Box 2a of Form 1099-DIV.

Traditional and Roth IRA Contribution Limits

The annual contribution limit for both Traditional and Roth IRAs is $5,500 for 2015. In addition individuals who are at least 50 years of age will be permitted to make “catch-up” contributions of $1,000 annually. These amounts will change according to the following schedule.

Tax Year Contribution Limit Catch-Up Contribution
2016 $5,500 $1,000
2017 $5,500 $1,000
After 2017 Indexed for Inflation $1,000

For more information on investing in a Westcore IRA visit the IRA section of our website.

Coverdell Education Saving Account Contribution Limits

The maximum contribution per beneficiary for a Coverdell Education Savings Account (“CESA Account”) is $2,000 per year. The Adjusted Gross Income phase-out range for single taxpayers is $95,000 to $110,000 and for married taxpayers filing jointly is $190,000 to $220,000.

For more information on investing in a Westcore CESA Account, visit the Education Savings section of our web site.

Please note that this information should not be construed as investment advice nor is it intended as a substitute for individual tax or legal advice. For information or advice specific to your situation please contact an investment or tax professional.