163(j) Dividends for Corporate Investors

163(j) Interest Income Dividends for Corporate Investors Reporting for 2021

A portion of ordinary dividends received may be eligible to be treated by corporate shareholders as Section 163(j) interest dividends and thus qualify as business interest income when determining the limitation on their business interest expense deduction.

To determine the amount of each dividend you received in calendar year 2021 that is eligible to be treated as business interest income, multiply the ordinary dividend income received by the corresponding Section 163(j) interest dividend percentage provided. 

2021 Section 163(j) Deduction

Mutual Funds

 
Fund Name PERCENTAGE TO APPLY TO ORDINARY DIVIDENDS*
Balanced Fund 4.29%
Capital Preservation Fund1, 3 100.00%
Core Plus Fund3 85.52%
Diversified Bond Fund3 91.06%
Emerging Markets Debt Fund3 100.00%
Equity Income Fund 11.88%
Ginnie Mae Fund3 100.00%
Global Bond Fund 99.53%
Government Bond Fund3 95.83%
High Income Fund3 86.86%
High-Yield Fund3 93.60%
Inflation-Adjusted Bond Fund 100.00%
International Bond Fund 100.00%
NT Diversified Bond Fund3 99.20%
NT High Income Fund3 85.21%
One Choice® 2025 Portfolio 26.29%
One Choice® 2030 Portfolio 23.11%
One Choice® 2035 Portfolio 19.55%
One Choice® 2040 Portfolio 16.08%
One Choice® 2045 Portfolio 12.19%
One Choice® 2050 Portfolio 8.66%
One Choice® 2055 Portfolio 6.96%
One Choice® 2060 Portfolio 5.81%
One Choice® 2065 Portfolio 4.86%
One Choice® Blend Plus 2015 Portfolio 38.51%
One Choice® Blend Plus 2020 Portfolio 32.74%
One Choice® Blend Plus 2025 Portfolio 28.84%
One Choice® Blend Plus 2030 Portfolio 25.03%
One Choice® Blend Plus 2035 Portfolio 18.63%
One Choice® Blend Plus 2040 Portfolio 12.59%
One Choice® Blend Plus 2045 Portfolio 8.31%
One Choice® Blend Plus 2050 Portfolio 6.63%
One Choice® Blend Plus 2055 Portfolio 4.73%
One Choice® Blend Plus 2060 Portfolio 4.27%
One Choice® Blend Plus 2065 Portfolio 4.09%
One Choice® In Retirement Portfolio 27.13%
One Choice® Portfolio: Aggressive 15.64%
One Choice® Portfolio: Conservative 32.44%
One Choice® Portfolio: Moderate 22.24%
One Choice® Portfolio: Very Aggressive 0.00%
One Choice® Portfolio: Very Conservative 48.49%
Prime Money Market Fund2, 3 100.00%
Short Duration Fund3 75.41%
Short Duration Inflation Protection Bond Fund 99.33%
Short Duration Strategic Income Fund3 68.53%
Short-Term Government Fund3 45.10%
Strategic Allocation: Aggressive Fund 9.84%
Strategic Allocation: Conservative Fund 30.14%
Strategic Allocation: Moderate Fund 15.15%
Strategic Income Fund3 59.26%
U.S. Government Money Market Fund1, 3 94.96%
Zero Coupon 2025 Fund 100.00%

 

1

Money Market Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

2

Money Market Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

3 The holding period requirements for Section 163(j) interest dividends would not apply to this fund.

* Ordinary dividends includes net investment income distributions and short-term capital gain distributions.

Exchange Traded Funds (ETFs)

 
Fund Name PERCENTAGE TO APPLY TO ORDINARY DIVIDENDS*
American Century® Diversified Corporate Bond ETF - KORP4 1.70%
American Century® Emerging Markets Bond ETF - AEMB4 100.00%
American Century® Multisector Income ETF - MUSI4 99.95%
American Century® Quality Convertible Securities ETF - QCON4 34.89%
American Century® Quality Preferred ETF - QPFF4 6.67%
American Century® Select High Yield ETF - AHYB4 94.95%

Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investments Services, Inc.

Mutual Funds: American Century Investment Services, Inc., Distributor.

4

This fund is an actively managed ETF that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.

You should consider the fund's investment objectives, risks, and charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained by calling 1.800.345.2021, contains this and other information about the fund, and should be read carefully before investing. Download Prospectus: Mutual Fund or Exchange Traded Fund (ETF). Investments are subject to market risk.