A portion of the dividends from the American Funds listed below may be eligible for the 20% qualified business income deduction under Section 199A, to the extent that the individual taxpayer has met the 46-day holding period requirement. These dividends are attributable to qualified real estate investment trust (REIT) dividends received by the fund and are reported in Box 5 of Form 1099-DIV.
To be eligible for deduction under Section 199A, a shareholder must have held shares on which the dividend was paid for at least 46 days during the 91-day period that began 45 days before the fund's ex-dividend date (ex-date). The ex-date is the date on which the dividend is deducted from the fund's per share net asset value. For purposes of the holding period, you may not count the day on which the shares were purchased or acquired by reinvesting dividends, but you may count the day the shares were sold.
Funds with Section 199A dividend income
American Balanced Fund
American Funds 2040 Target Date Retirement Fund
American Funds 2035 Target Date Retirement Fund
American Funds 2030 Target Date Retirement Fund
American Funds 2025 Target Date Retirement Fund
American Funds 2020 Target Date Retirement Fund
American Funds 2015 Target Date Retirement Fund
American Funds 2010 Target Date Retirement Fund
American Funds Conservative Growth and Income Portfolio
American Funds Global Balanced Fund
American Funds Growth and Income Portfolio
American Funds Moderate Growth and Income Portfolio
American Funds Retirement Income Portfolio - Conservative
American Funds Retirement Income Portfolio - Enhanced
American Funds Retirement Income Portfolio - Moderate
Capital Income Builder
The Income Fund of America
* This percentage applies to the fund's taxable income dividends and foreign taxes (excluding short-term capital gain distributions).
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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American Funds Distributors, Inc.
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