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Reclassification |
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Reclassification In mutual funds, the act or process of changing one type of fund into another type. For example, one may reclassify a front-load fund to a back-load fund or vice versa. One of the most common types of reclassification occurs when a load fund, after a certain number of years, becomes a no-load fund. This happens because the load generally only exists for a certain number of years. The IRS does not consider reclassification to be a taxable event, even if it results in more income or capital gains. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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