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Personal Investments • VMFXX vs VUSXX

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My question is - is there any significant difference in state tax because of the repurchase agreements and non-treasury? i.e. will my state (Illinois) tax VUSXX differently from VMFXX? I want to keep about $200,000 in MM funds going forward in my taxable account as an emergency fund - so it is about $10,000 in income for either fund, and IL tax rate is 4.95%. I hope IL will not tax VUSXX, but how about VMFXX? I'd prefer to use VMFXX as it is the settlement fund for Vanguard.
Just an estimation - if 60% of the holdings are subject to state tax then you're talking about $300/year in state tax. Is that considered significant to you?
And with 30% subject, it’s only $150/yr.

Statistics: Posted by rkhusky — Mon Dec 09, 2024 7:41 am — Replies 4 — Views 559



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