Review and Complete
- What share price will I receive?
- Will I owe taxes on the shares I’m selling?
- Is there a “back-end” charge for selling shares?
- When will I receive the money?
- Can I reinvest the money with American Funds?
What share price will I receive?
For all sales, you receive the fund’s closing share price calculated on the day your request is processed. For instance, if you submit your request before 4 p.m. Eastern time on a regular business day, you’ll receive that day’s closing share price. If you submit your request after 4 p.m. Eastern time, it will be processed on the next business day and you’ll receive that day’s closing share price.
Will I owe taxes on the shares I’m selling?
If you sell shares for more than you originally paid, you may owe capital gains tax. If you sell shares for less than you originally paid, you may have to report a capital loss on your taxes.
Cost basis information is used to determine your capital gain or loss on a sale or exchange of shares. The cost basis of your mutual fund shares is typically the purchase price, including any sales charges you paid when you purchased your shares.
- Covered shares are acquired on or after January 1, 2012. We report the cost basis for sales and exchanges of covered shares to you and the IRS.
- Noncovered shares are acquired before January 1, 2012, and shares for which cost basis is unknown. We don’t report cost basis for sales or exchanges of noncovered shares to the IRS. However, when cost basis is available, we’ll provide Average Cost basis information to you.
You’re responsible for reporting capital gain or loss information for both covered and noncovered shares on Schedule D for IRS Form 1040.
Before selling shares, you may want to discuss the tax implications with your tax or financial professional.
Is there a “back-end” charge for selling shares?
American Funds Class B and Class 529-B shares have a “back-end” or contingent deferred sales charge (CDSC) if you sell shares within six years of purchasing them. American Funds Class C and Class 529-C shares also have a CDSC if shares are sold within the first year of purchase. Certain sales of American Funds Class A shares may also carry a CDSC.
For more information, go to “Selling shares” under “Help with managing your accounts” or call Shareholder Services.
When will I receive the money?
Electronic deposits are generally sent the next business day after your request is processed. Please allow up to three (3) business days for the money to be deposited into your account. Checks are generally mailed to the address on the account the next business day after your request is processed. Please allow up to seven (7) business days to receive your check.
Important: For your protection, if you changed information for a bank account, you cannot have money from the sale of shares deposited into that account for 10 business days after the date of your change. This waiting period also applies when you change information for a bank account or when a new bank account is added.
Can I reinvest the money with American Funds?
You may reinvest the money from this sale back into the same account from which you sold the shares without a sales charge provided the reinvestment occurs within 90 days after the date of the sale.
If this account has been closed, the money can be reinvested into another fund provided:
- the reinvestment occurs within 90 days after the date of the sale
- the money is reinvested in the same type of account as the account from which it came
- the account has the same owner
This right also applies to funds that are subject to the 30-day purchase-block period* once the 30 days have expired. (Exception: A sales charge will apply if you are reinvesting the money from our money market fund, which does not carry a sales charge, into any of our other funds.)
See your financial professional or your fund’s statement of additional information for details.
*30-day purchase-block period: As described in each fund’s prospectus, if you sell or exchange $5,000 or more from a fund, our purchase-block policy requires that you wait 30 days before making another purchase or exchange of $5,000 or more into that fund. Please note: The purchase-block policy does not apply to American Funds U.S. Government Money Market Fund℠ and the American Funds Target Date Retirement Series®.