Alternative Minimum Tax

Updated for 2018

To calculate the Alternative Minimum Tax (AMT) preference item, use the calculation and the percentages below. The result is the amount that may be treated as a preference item for your AMT.

Investors who hold the funds below directly with American Century Investments® can find the AMT preference item in box 11 of their Form 1099-DIV.


Calculation:

Total Income Distribution X AMT Percentage for the Appropriate Fund

Mutual Funds

Fund Name AMT Percentage
California High-Yield Municipal Fund 0%
California Intermediate-Term Tax-Free Bond Fund 0%
California Tax-Free Money Market Fund1 0%
High-Yield Municipal Fund 8%
Intermediate-Term Tax-Free Bond Fund 0%
Tax-Free Money Market Fund1 20%

Exchange Traded Funds (ETFs)

Fund Name AMT Percentage
American Century® Diversified Municipal Bond ETF - TAXF2 9%

ETF shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns.

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

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. 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.

2

This fund is an actively managed Exchange Traded Fund (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.