163(j) Interest Income Dividends for Corporate Investors Reporting
Updated for 2023
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 2023 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.
Mutual Funds
FUND NAME | PERCENTAGE TO APPLY TO ORDINARY DIVIDENDS* |
Balanced Fund | 64.73% |
Capital Preservation Fund1, 3 | 100.00% |
Core Plus Fund3 | 100.00% |
Diversified Bond Fund3 | 100.00% |
Emerging Markets Debt Fund | 100.00% |
Equity Income Fund | 16.84% |
Ginnie Mae Fund3 | 100.00% |
Global Bond Fund | 100.00% |
Government Bond Fund3 | 100.00% |
High Income Fund3 | 100.00% |
High-Yield Fund3 | 93.20% |
Inflation-Adjusted Bond Fund | 83.52% |
International Bond Fund4 | 0.00% |
Multisector Income Fund | 100.00% |
One Choice® 2025 Portfolio | 74.56% |
One Choice® 2030 Portfolio | 66.86% |
One Choice® 2035 Portfolio | 61.85% |
One Choice® 2040 Portfolio | 54.96% |
One Choice® 2045 Portfolio | 47.01% |
One Choice® 2050 Portfolio | 37.74% |
One Choice® 2055 Portfolio | 30.63% |
One Choice®2060 Portfolio | 26.36% |
One Choice® 2065 Portfolio | 22.46% |
One Choice® Blend Plus 2015 Portfolio | 73.90% |
One Choice® Blend Plus 2020 Portfolio | 70.91% |
One Choice® Blend Plus 2025 Portfolio | 67.92% |
One Choice® Blend Plus 2030 Portfolio | 60.02% |
One Choice® Blend Plus 2035 Portfolio | 52.75% |
One Choice® Blend Plus 2040 Portfolio | 43.63% |
One Choice® Blend Plus 2045 Portfolio | 33.24% |
One Choice® Blend Plus 2050 Portfolio | 23.71% |
One Choice® Blend Plus 2055 Portfolio | 18.11% |
One Choice® Blend Plus 2060 Portfolio | 14.42% |
One Choice® Blend Plus 2065 Portfolio | 13.89% |
One Choice® In Retirement Portfolio | 73.01% |
One Choice® Portfolio: Aggressive | 39.24% |
One Choice® Portfolio: Conservative | 70.61% |
One Choice® Portfolio: Moderate | 55.58% |
One Choice® Portfolio: Very Aggressive | 0.00% |
One Choice® Portfolio: Very Conservative | 86.32% |
Prime Money Market Fund2, 3 | 100.00% |
Short Duration Fund3 | 100.00% |
Short Duration Inflation Protection Bond Fund | 92.74% |
Short Duration Strategic Income Fund3 | 100.00% |
Short-Term Government Fund3 | 100.00% |
Strategic Allocation: Aggressive Fund | 33.56% |
Strategic Allocation: Conservative Fund | 62.56% |
Strategic Allocation: Moderate Fund | 48.08% |
U.S. Government Money Market Fund1, 3 | 100.00% |
Zero Coupon 2025 Fund | 100.00% |
Money Market Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress.
Money Market Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress.
The holding period requirements for Section 163(j) interest dividends would not apply to this fund.
On February 15, 2024, the International Bond Fund was liquidated.
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 - (KORP)A | 100.00% |
American Century® Emerging Markets Bond ETF - (AEMB)A, B | 100.00% |
American Century® Multisector Floating Income ETF - (FUSI)A | 100.00% |
American Century® Multisector Income ETF - (MUSI)A | 100.00% |
American Century® Quality Convertible Securities ETF - (QCON)A | 83.76% |
American Century® Quality Preferred ETF - (QPFF)A | 32.13% |
American Century® Select High Yield ETF - (AHYB)A | 100.00% |
American Century® Short Duration Strategic Income ETF - (SDSI)A | 100.00% |
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.
Effective October 3, 2024, this ETF liquidated.
Ordinary dividends includes net investment income distributions and short-term capital gain distributions.
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 Investment Services, Inc.
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.
Mutual Funds: American Century Investment Services, Inc., Distributor.