Neuberger Berman Municipal Fund Announces Monthly Distribution of $0.05417 per Share

Neuberger Berman Municipal Fund has announced a distribution declaration of $0.05417 per share of common stock. The distribution is payable on August 15, 2025, and has a record date of July 31, 2025. The Fund seeks to provide income exempt from regular federal income tax. Distributions may be subject to the federal alternative minimum tax for some shareholders.

Neuberger Berman Municipal Fund (NYSE American: NBH) has announced a monthly distribution of $0.05417 per share of common stock, payable on August 15, 2025. The record date is set for July 31, 2025. The Fund aims to provide income exempt from regular federal income tax, although distributions may be subject to the federal alternative minimum tax (AMT) for some shareholders [1].

The distribution can include net investment income, realized capital gains, and return of capital. The final determination of the distribution's tax characteristics will be made at year-end 2025. It is important for shareholders to note that while the distributions are exempt from regular federal income tax, they may still be subject to AMT [1].

For those who may be subject to AMT, it is crucial to understand the implications. The AMT is a different way of calculating tax obligations, designed to ensure that high earners pay an appropriate amount of federal income tax. If a taxpayer's income exceeds the AMT exemption amount, they must calculate both their ordinary income tax and AMT and pay the higher of the two [3].

AMT calculations can be complex, but shareholders can use tools like the AMT calculator provided by Carta to estimate their potential tax bill. The AMT exemption amount for 2025 is $137,000 for married filing jointly and $88,100 for single filers, which may phase out at higher income levels [3].

Investors should consult with a tax professional to understand how exercising stock options might impact their tax liability. If ISOs are exercised and not sold in the same year, the spread between the price paid for the options and their market value when exercised is counted as income for AMT purposes. However, if shares are sold in the same year they are exercised, the spread counts as regular income [3].

In summary, Neuberger Berman Municipal Fund's monthly distribution offers a tax-advantaged income stream, but shareholders should be aware of potential AMT implications. Consulting with a tax professional can help investors understand their specific tax obligations and plan accordingly.

References:
[1] https://www.stocktitan.net/news/NBH/neuberger-berman-municipal-fund-announces-monthly-pmrl2lvolly0.html
[2] https://www.marketscreener.com/quote/stock/EXTENDICARE-INC-1409949/news/Extendicare-Inc-Declares-Cash-Dividend-for-the-Month-of-July-2025-Payable-on-August-15-2025-50513059/
[3] https://carta.com/learn/equity/stock-options/taxes/amt/