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Depends. I believe that if the money market holds us treasuries, you may get some state tax exemptions
Rising Star
Depends on the state too. Some states allow proportional tax exemption others require that the fund holds over a certain portion of government securities to be tax free.
Rising Star
There's an ETF called BOXX whose intent is to use box spread options to offer the return profile of a money market or ultrashort bond fund but retain the earnings within the fund as capital gains and not distribute income, basically deferring tax and converting it to CG income.
Time will tell whether the IRS actually lets them do that.
While you discover where to put your short term cash, let me say to check out Vanguard Money Market instead of Fidelity. Less fee. More return. Instead of SPAXX they have a SPAXX equivalent.
Conversation Starter
Thank you