AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner practitioner and have performed fee only investment management and financial planning services for the past 11 years.
Richard Matta writes on 2008-04-16 17:56:07
ETFs are mutual funds. More specifically, Code section 403(b)(7) requires that all assets be invested in "regulated investment company stock". A "regulated investment company" is defined by reference to Code section 851(a). It is my understanding that most ETFs meet the definition under section 851(a). Try to track down a prospectus and it should give the answer. That said, I don't think the IRS has ever addressed the issue directly.
