New cost basis reporting rules
In October 2010, the Treasury Department and the IRS released mandatory cost basis regulations that were enacted as a result of the Economic Stabilization Act of 2008. The new regulations require brokers and mutual fund companies to provide cost basis reporting to the IRS for mutual fund shares acquired after January 1, 2012. Please note that retirement, education savings, and money market accounts are not affected by these new regulations.
Putnam allows shareholders to select the cost basis method for future purchases and sales. If you did not choose a method previously, Putnam's default method is Average Cost.
If you would like to continue using the Average Cost reporting method, you do not need to take any action. If you would like to use a different cost basis accounting method, you can change it online via the “My Accounts” section at putnam.com/individual or you may complete the Cost Basis Election Form and return it to Putnam. You may change the method that applies to your shares on a prospective basis at any time.
The example below assumes a single purchase of shares using the Average Cost method:
For more information about the regulations change and the different cost basis accounting methods available to shareholders, please see our Cost Basis Q&A. Please call Putnam with any questions at 1-800-225-1581.