Please Read. Important Tax Information Enclosed. TAX GUIDE 2017 Tax Information for your Investment Account
Table of Contents Important Reminders... 3 Widely Held Fixed Investment Trusts (WHFIT) Example... 4 Computation of Expenses... 5 Tax-Exempt Income Information....6-8 State Tax Information... 6 Foreign Tax Credit Explanation... 9-11 Dear Investor: In this guide, you will find important year-end tax reporting information for your investment account custodied at the SEI Private Trust Company. We hope this guide is helpful when you or your tax advisor are completing and filing your income tax return. If you have specific questions about the reporting of your dividends and distributions, or which tax forms to use, please consult your personal tax advisor. If you have a specific question regarding your investment account, please contact your investment advisor. If you have a question for the Internal Revenue Service (IRS), call the IRS at 800-TAX-1040, or visit its website at irs.gov. Sincerely, SEI Private Trust Company A Special Note for Investors This information is provided for your general guidance. This information is not intended to be a substitute for, nor should it be construed as, tax, legal, or other professional advice. Before undertaking any tax filing, it is recommended that you consult with a tax professional. This information is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any transaction or matter addressed herein.
Important Reminders Truncated Social Security and EIN Numbers Filers of information returns are permitted to truncate an individual payee s Tax Payer Identification Number (TIN) on payee statements furnished to the payee on paper or electronically. The provision applies only to information returns in the 1098, 1099, and 5498 series. Under this optional program, payers may replace the first five digits of the payee s SSN, EIN, ITIN, or ATIN with asterisks or the letter X. For example a Social Security number will now appear as XXX-XX-1234. This will enable better protection of personally identifying information for the recipients. SEI Private Trust Company will again truncate your TIN. Cost Basis Reporting on Form 1099-B Prior to 2011, cost basis information provided on form 1099-B was for informational purposes only and not sent to the IRS. Beginning with the 2011 tax year, the IRS is requiring cost basis to be reported for covered securities. For 2011, covered securities entailed stocks of corporations that were purchased after January 1, 2011. Starting with the 2012 tax reporting year, mutual funds and Dividend Reinvestment Plans purchased after January 1, 2012, will also be covered. Debt Instruments, options and any other securities specified by the IRS will be covered after January 1, 2015. This reporting will include whether any gain or loss is short term, long term or ordinary. The 1099-B form will have separate sections for covered and noncovered securities. The two sections are needed to comply with the guidelines established by the Emergency Economic Stabilization Act of 2008. For covered securities, both the gain/loss information and the cost basis information will be included on the 1099-B and transmitted to the IRS. For noncovered securities, only the gain/loss information will be transmitted to the IRS. A Special Note for Investors in Hedge Funds and Other Partnership Investments IRS Form 1065 (Partners Share of Income/Loss), Schedule K-1, will be sent directly from the partnership, and will not be included in the SEI Private Trust Company tax package. IRS Form 1065, Schedule K-1 is used by partnerships to report to partners their portions of the partnership s income, deductions, credits, etc. This information is often not available from the partnership until after the tax filing deadline of April 15. You should consult your tax advisor regarding filing an extension for the 2017 tax year if this applies to you. A Special Note for Investors in the Managed Account Solutions Investors in the Managed Account Solutions will receive one 2017 Combined Year-End Tax Form package, which links all the underlying accounts. Please see page 4 of your tax package for a list of accounts included in your tax form. Tax Form Revisions If a security provides revised tax information after the date that your 1099 forms are created, SEI Private Trust Company, may need to send out a revised tax form. Because of differences in how revised versus original forms are generated, it is possible to receive the revised form prior to receiving the original. If you receive multiple 1099s, the 1099 form with the most recent date listed is the most recent revision. Original tax forms will not have a revision date listed. 3
Widely Held Fixed Investment Trusts (WHFIT) What asset classes are considered WHFIT? Common WHFIT classes include: 1 Mortgage-backed Security Pools or MBS assets 2 Unit Investment Trust or UIT assets and Commodity Trust 3 Real Estate Mortgage Investment Conduit (REMIC) 4 Royalty Trust Additional written information will be provided to holders of these assets to complete their individual tax returns. This information will be included with the final 1099 mailed from SEI Private Trust Company. Additional information, which may be included in the written statement, may include all items of gross income, items of expense, information on asset sales and dispositions, redemptions and sales of WHFIT units of the trust, and bond premium and market discount within the trust. Note: Below is an example of the WHFIT statement. For Illustrative Purposes Only. Income reported on the 1099 from these trusts will not match the income from distributions on the monthly statements. Items of gross income, including certain trust expenses, will now be included with income. Tax liability may be based on an amount greater than the cash received. For example, an asset may have had income payments that were associated with the trust that were paid 100% to administrative expenses. This would not have been shown on the monthly statement since there was no actual payment to the shareholder. These trust expenses will be grossed up and included in the income and the expense sections on the written statement. 4
Computation of Expenses All data in this chart is derived from the Dividends and Interest Detail heading of the tax return. The following paragraphs explain how to find the income figures on the tax return and how to calculate the other figures in the chart. For Illustrative Purposes Only. 1 Tax-Exempt Income This is the amount of interest that the investor earned on municipal bonds. Municipal bonds are exempt from taxation at the federal level and in the state of issuance, municipal bonds are exempt from taxation at the state tax level. The tax-exempt income can be calculated by adding the following items in the Interest section of the tax return: Municipal Interest nontaxable in XX. (situs state NJ, NY, PA, etc.) and the Municipal Interest taxable in XX (situs state NJ, NY, PA, etc.) 2 Gross Taxable Income This is the total of dividends and/or interest that the client received from investments other than municipal bonds. The gross taxable income can be calculated by adding the following: qualified dividends, nonqualified dividends, interest, and the net gain or loss on Schedule 1099-B reportable transactions. 3 Total Income = Line 1 + Line 2 4 Allocable Expenses This amount can be found on the tax return under the Other Tax Information heading. The allocable expenses are called Deductions in this section. 5 Expenses Allocated to TEI = Line 1 / Line 3 * Line 4 (above) 6 Expenses Allocated to Taxable Income = Line 4 Less Line 5 (above) 5
Tax-Exempt Income Information State and Local Tax Treatment Some of the federal tax-exempt dividends may also be exempt from state and local taxes, depending upon where the investor files a return. Since state and local tax regulations may vary from state to state, and not all states permit such exclusion, please consult a tax advisor. If permitted, this amount can be excluded and the remaining balance should be reported on the state return. This calculation has been completed as part of the SEI Private Trust Company Tax Information Statement. Alternative Minimum Tax Municipal bond income subject to the Alternative Minimum Tax has been calculated and is provided to you in the SEI Private Trust Company Tax Information Statement. Important State Tax Information This letter contains important tax information specific to your SEI Institutional Managed Trust Funds. Please consult your tax advisor and refer to this newsletter when preparing your tax return. If you require further information, please call our Investor Services representatives at 800-DIAL-SEI. United States Government Interest Please check with your state or local tax office or your tax advisor to determine whether your state allows you to exclude some or all of the income you earn from mutual funds that invest in direct U.S. government obligations. If so, multiply the income percentage listed in the chart below by the amount in Box 1a of your Form 1099-DIV to determine the amount of exempt interest. SIIT Large Cap Fund 1 0.00% SIIT Large Cap Disciplined Equity Fund 1 0.00% SIIT Large Cap Index Fund 1 0.04% SIIT Small/Mid Cap Equity Fund 1 0.00% SIIT Small Cap Fund 1 0.00% SIIT World Equity Ex-U.S. Fund 1 0.00% SIIT Core Fixed Income Fund 1 43.61% SIIT Screened World Equity Ex-U.S. Fund 1 0.00% SIIT Long Duration Fund 1 15.44% SIIT High Yield Bond Fund 1 0.00% SIIT Emerging Markets Debt Fund 1 0.00% SIIT Large Cap Diversified Alpha Fund 1,2 0.00% SIIT Opportunistic Income Fund 1 0.04% SIIT Real Return Fund 99.72% SIIT U.S. Managed Volatility Fund 1 0.00% SIIT Dynamic Asset Allocation Fund 1 0.00% SIIT Ultra Short Duration Fund 1 4.36% SIIT Multi-Asset Real Return Fund 1 41.96% SIIT Small Cap II Fund 1 0.00% SIIT Long Duration Credit Fund 1 3.46% SIIT Extended Market Index Fund 1 0.05% 6 1 Due to certain statutory limitations, shareholders of these funds that are residents of California, Connecticut or New York are not permitted to exclude the portion of ordinary income that represents direct U.S. government obligations from their state income taxes. Please consult your tax advisor. 2 Liquidated April 28, 2017
SIIT S&P 500 Index Fund 1 0.04% SIIT Limited Duration Bond Fund 1 24.51% SIIT Emerging Markets Equity Fund 1 0.00% SIIT Intermediate Duration Credit Fund 1 3.72% SIT International Equity Fund 1 0.00% SIT Emerging Markets Debt Fund 1 0.00% SIT International Fixed Income Fund 1 0.00% SIT Emerging Markets Equity Fund 1 0.00% STET Tax Free Fund 0.00% STET Institutional Tax Free Fund 0.00% STET Intermediate-Term Municipal Fund 0.00% STET Short Duration Municipal Fund 0.00% STET Pennsylvania Municipal Bond Fund 0.00% STET Massachusetts Municipal Bond Fund 0.00% STET New Jersey Municipal Bond Fund 0.00% STET New York Municipal Bond Fund 0.00% STET Tax-Advantaged Income Fund 3.01% STET California Municipal Bond Fund 0.00% SDIT Government Fund 1 62.79% SDIT Government II Fund 100.00% SDIT Short-Duration Government Fund 1 12.03% SDIT GNMA Fund 1 0.00% SDIT Treasury Fund 1 58.76% SDIT Treasury II Fund 99.98% SDIT Ultra Short Duration Bond Fund 1 3.98% SIMT S&P 500 Index Fund 1 0.04% SIMT Large Cap Growth Fund 1 0.00% SIMT Small Cap Value Fund 1 0.00% SIMT High Yield Bond Fund 1 0.00% SIMT Large Cap Value Fund 1 0.00% SIMT Core Fixed Income Fund 1 19.94% SIMT U.S. Fixed Income Fund 1 25.28% SIMT Small Cap Growth Fund 1 0.00% SIMT Mid-Cap Fund 1 0.00% SIMT Tax-Managed Large Cap Fund 1 0.00% SIMT Tax-Managed Small/Mid Cap Fund 1 0.00% 1 Due to certain statutory limitations, shareholders of these funds that are residents of California, Connecticut or New York are not permitted to exclude the portion of ordinary income that represents direct U.S. government obligations from their state income taxes. Please consult your tax advisor. 7
SIMT U.S. Managed Volatility Fund 1 0.00% SIMT Real Estate Fund 1 0.00% SIMT Global Managed Volatility Fund 1 0.00% SIMT Enhanced Income Fund 1 0.81% SIMT Tax-Managed Managed Volatility Fund 1 0.00% SIMT Real Return Fund 99.89% SIMT Multi-Strategy Alternative Fund 1 0.16% SIMT Large Cap Fund 1 0.00% SIMT Multi-Asset Accumulation Fund 1 0.00% SIMT Multi-Asset Income Fund 1 0.20% SIMT Multi-Asset Inflation Managed Fund 1 0.00% SIMT Multi-Asset Capital Stability Fund 1 7.02% SIMT Small Cap Fund 1 0.00% SIMT Long/Short Alternative Fund 1 0.82% SIMT Dynamic Asset Allocation Fund 1 0.00% SIMT Conservative Income Fund 1 0.02% SAAT Conservative Strategy Fund 1 7.80% SAAT Moderate Strategy Fund 1 6.94% SAAT Aggressive Strategy Fund 1 1.37% SAAT Core Market Strategy Fund 1 6.10% SAAT Market Growth Strategy Fund 1 3.65% SAAT Defensive Strategy Fund 1 11.29% SAAT Conservative Strategy Allocation Fund 1 0.00% SAAT Moderate Strategy Allocation Fund 1 0.00% SAAT Tax-Managed Aggressive Strategy Fund 1 0.00% SAAT Core Market Strategy Allocation Fund 1 0.00% SAAT Market Growth Strategy Allocation Fund 1 0.00% SAAT Defensive Strategy Allocation Fund 1 0.00% Tactical Offensive Equity Fund 0.00% Tactical Offensive Fixed Income Fund 16.00% SEI Catholic Values Equity Fund 0.00% SEI Catholic Values Fixed Income Fund 20.60% New Covenant Growth Fund 0.00% New Covenant Balanced Growth Fund 7.15% New Covenant Balanced Income Fund 10.07% New Covenant Income Fund 13.20% 1 Due to certain statutory limitations, shareholders of these funds that are residents of California, Connecticut or New York are not permitted to exclude the portion of ordinary income that represents direct U.S. government obligations from their state income taxes. Please consult your tax advisor. 8
Foreign Tax Credit Explanation SEI TAX GUIDE Foreign Tax Credit and Foreign Source Income SIIT World Equity Ex-U.S. Fund, SIIT Screened World Equity Ex-U.S. Fund and SIIT Emerging Markets Equity Fund qualified for and elected to pass through foreign tax credits to its shareholders. Accordingly, you are entitled to claim a foreign tax credit or take an itemized deduction on your federal income tax return for your share of the taxes indicated in Box 6 of your Form 1099-DIV. To be eligible to claim a foreign tax credit, you must have held your shares for more than 15 days within a 31-day period beginning 15 days before the distribution date. The maximum credit a taxpayer may use is generally limited to the percentage of U.S. tax that equals the taxpayer s foreign source taxable income as a percentage of worldwide taxable income. If you are unable to use the foreign tax credit, you still may be able to claim the amount as an itemized deduction. If your total creditable foreign taxes paid are not more than $300 ($600 if married filing jointly) and you meet all of the other requirements, you may be eligible to elect to claim a foreign tax credit, without regard to the foreign limitation and without filing Form 1116. If your total creditable foreign taxes paid are more than $300 ($600 if married filing jointly), you will be required to compute the foreign limitation and complete Form 1116. To calculate the foreign tax credit limitation, you will need to know your foreign source income and foreign qualifying dividend income from all sources. Please use the worksheet below to obtain your fund s pertinent information and aggregate it with similar information from other investments you own. SIIT World Equity Ex-U.S. Fund (A) Foreign Source Income Input Total Ordinary Dividends from this Fund s Form 1099-DIV, Box 1a x Factor (Use the factor as disclosed on this line) (B) Foreign Qualifying Dividend Income (ii) x 0.83 (ii) x 0.51 Foreign Source Income and Foreign Qualifying Dividend Income to be used for Foreign Tax Credit Limitation + (ii) + (ii) SIIT Screened World Equity Ex-U.S. Fund Input Total Ordinary Dividends from this Fund s Form 1099-DIV, Box 1a x Factor (Use the factor as disclosed on this line) (A) Foreign Source Income (B) Foreign Qualifying Dividend Income (ii) x.88 (ii) x.78 Foreign Source Income and Foreign Qualifying Dividend Income to be used for Foreign Tax Credit Limitation + (ii) + (ii) SIIT Emerging Markets Equity Fund Input Total Ordinary Dividends from this Fund s Form 1099-DIV, Box 1a x Factor (Use the factor as disclosed on this line) (A) Foreign Source Income (B) Foreign Qualifying Dividend Income (ii) x 0.51 (ii) x 0.24 Foreign Source Income and Foreign Qualifying Dividend Income to be used for Foreign Tax Credit Limitation + (ii) + (ii) 9
Foreign Tax Credit and Foreign Source Income The SIT Emerging Markets Equity Fund and SIT International Equity Fund qualified for and elected to pass through foreign tax credits to its shareholders. Accordingly, you are entitled to claim a foreign tax credit or take an itemized deduction on your federal income tax return for your share of the taxes indicated in box 6 of your Form 1099-DIV. To be eligible to claim a foreign tax credit, you must have held your shares for more than 15 days within a 31-day period beginning 15 days before the distribution date. The maximum credit a taxpayer may use is generally limited to the percentage of U.S. tax that equals the taxpayer s foreign source taxable income as a percentage of worldwide taxable income. If your total creditable foreign taxes paid are not more than $300 ($600 if married filing jointly) and you meet all of the other requirements, you may be eligible to elect to claim a foreign tax credit, without regard to the foreign limitation and without filing Form 1116. If your total creditable foreign taxes paid are more than $300 ($600 if married filing jointly), you will be required to compute the foreign limitation and complete Form 1116. To calculate the foreign tax credit limitation, you will need to know your foreign source income and foreign qualifying dividend income from all sources. Please use the worksheet below to obtain your fund s pertinent information and aggregate it with similar information from other investments you own. If you are required to report foreign tax information by country on Form 1116, please contact investor services. SIT Emerging Markets Equity Fund Input Total Ordinary Dividends from this Fund s Form 1099-DIV, Box 1a x Factor (Use the factor as disclosed on this line) (A) Foreign Source Income (B) Foreign Qualifying Dividend Income (ii) x 0.67 (ii) x 0.44 Foreign Source Income and Foreign Qualifying Dividend Income to be used for Foreign Tax Credit Limitation + (ii) + (ii) SIT International Equity Fund (A) Foreign Source Income Input Total Ordinary Dividends from this Fund s Form 1099-DIV, Box 1a x Factor (Use the factor as disclosed on this line) (B) Foreign Qualifying Dividend Income (ii) x 0.84 (ii) x 0.74 Foreign Source Income and Foreign Qualifying Dividend Income to be used for Foreign Tax Credit Limitation + (ii) + (ii) 10
If you have a question for the Internal Revenue Service (IRS), you can contact the IRS directly at 800-TAX-1040, or visit its website at irs.gov Neither SEI nor its affiliates provide tax advice. Please note that any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor. Custody services provided by SEI Private Trust Company (SPTC), a federally chartered limited purpose savings association and wholly owned subsidiary of SEI Investments Company. 2008-2018 SEI 18e768-ADV 104750 (02/18)