IMPORTANT TAX INFORMATION - Form 1099-DIV Insert - 2025 Madison Funds

Sep 19, 2026

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Provides important 2025 federal tax guidance for recipients of Form 1099-DIV distributions and reinvestments related to Madison Funds. Explains how ordinary dividends may be treated as qualified dividends, the holding-period rules, and how capital gain distributions are taxed at 0%, 15%, or 20% depending on taxable income thresholds. Covers foreign taxes, foreign tax credit vs. itemized deduction treatment, and income derived from U.S. Government obligations, including notes to consult tax advisers and retain the insert for tax return preparation.

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Distributions of Ordinary Dividends

Qualified dividends and holding period rules

Distributions from Capital Gains

Tax rates and income thresholds

Special higher-rate exceptions

Foreign Taxes

Foreign tax credit vs. itemized deduction

Income Derived from U.S. Government Obligations

Exemption and category percentages

00317590 IMPORTANT TAX INFORMATION Enclosed is your Form 1099-DIV with respect to your investment in one or more of the Madison Funds. This insert provides you with important tax information relating to the distributions you received or reinvested in 2025. Because tax laws vary among states, you should consult your personal tax adviser about the specific rules in the states in which you pay income taxes and how the enclosed information relates to the preparation of your tax returns. This letter is for informational purposes only and has not been furnished to the Internal Revenue Service. Please retain this information for preparation of your tax returns. Distributions of Ordinary Dividends As a result of the Jobs and Growth Tax Relief Reconciliation Act of 2003 a portion of the total ordinary dividends (Box 1aon Form 1099-DIV) paid by your fund during 2025 may be designated as qualified dividends (Box 1b on Form 1099-DIV) . Qualified dividends are dividends received by your fund (and paid to shareholders) from domestic corporations or qualified foreign corporations that the fund has also met the required holding period (the fund must hold the security for greater than 60 days during the 121-day period beginning 60 days before the ex-dividend date) . Qualified dividends are taxed at the lower long-term capital gain tax rates. For the individual to report the amount of qualified dividends in Box 1b as qualified dividend income the shareholder must also satisfy the holding period requirement mentioned above with respect to his/her mutual fund shares. If the holding period requirement is not satisfied, the qualified dividends will be taxed as ordinary dividend income. Distributions from Capital Gains Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0% . For taxable years beginning in 2025, the tax rate on most net capital gain is no higher than 15% formost individuals. A capital gains rate of 0% applies if your taxable income is less than or equal to: 􀁸 $48,350 for single and married filing separately. 􀁸 $96,700 for married filing jointly and qualifying surviving spouse; and 􀁸 $64,750 for head of household. A capital gains rate of 15% applies if your taxable income is: 􀁸 more than $48,350 but less than or equal to $533,400 for single. 􀁸 more than $48,350 but less than or equal to $300,000 for married filing separately. 􀁸 more than $96,700 but less than or equal to $600,050 for married filing jointly and qualifying surviving spouse; and 􀁸 more than $64,750 but less than or equal to $566,700 for head of household. However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate. There are a few other exceptions where capital gains may be taxed at rates greater than 20%: 1. The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate. 2. Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate. 3. The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate. Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates. The amount of total capital gain distributions are shown in Box 2a of Form 1099-DIV. If applicable, amounts taxed at 28%(gain on collectibles) are shown in Box 2d and amounts taxed at 25%(unrecaptured Section 1250 gain) are shown in Box 2b of Form 1099-DIV. Madison Funds 2025 00317590 IMPORTANT TAX INFORMATION Foreign Taxes You are allowed to claim a tax credit or an itemized deduction on your federal income tax return for your share of foreign taxes paid by a mutual fund during 2025. In most cases, you will receive more benefit by claiming a tax credit. The amount reported in Box 7 of Form 1099-DIV represen

FAQs

What tax information does this insert provide for Madison Funds in 2025?

It provides tax information relating to distributions you received or reinvested in 2025 and explains how those amounts may be treated for federal tax purposes when reporting your Form 1099-DIV-related items.

How do qualified dividends differ from ordinary dividends?

Qualified dividends are a portion of total ordinary dividends that meet specific holding-period requirements and are generally taxed at lower long-term capital gain tax rates; if the holding period is not satisfied, they are taxed as ordinary dividends.

How are capital gain distributions taxed, and what rates may apply?

Net capital gains are taxed at rates that depend on overall taxable income, including potential 0%, 15%, and 20% rates. Certain exceptions may produce higher maximum rates for specific types of gains.

What should investors consider when claiming foreign taxes?

Investors may claim a tax credit or itemized deduction for foreign taxes paid by a mutual fund, but holding-period requirements and limits may affect whether the foreign taxes qualify for the credit or must be treated as itemized deductions. The insert advises consulting tax advisers and reviewing Form 1116 instructions.

Sep 19, 2026

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