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Tax Implications of 2015 Dividend

Expected Tax Implications 
$0.75 cash dividend paid on Universal American Corp. common stock on October 26, 2015

A portion of the dividend paid on October 26, 2015 is a return of capital for federal tax purposes and is not currently taxable. The return of capital portion reduces the holder’s basis in their Universal American stock.

The breakdown is as follows:

63.3% - Return of capital

36.7% - Qualified dividend

For example, if you owned 100 shares of Universal American Corp. common stock on the record date, October 19, 2015, you received a $75 distribution. Of that distribution, $27.525 is taxable as a qualified dividend and $47.475 is a return of capital that reduces your basis in each share of stock by 47.475 cents.

Please see your personal tax advisor to determine how this information should be used on your personal tax return. This information is meant as general information only.

 

Mandatorily Redeemable Preferred Stock:

Expected Tax Implications 
2015 cash dividends paid on Universal American Corp. Mandatorily Redeemable Preferred Stock

All of the distributions paid during 2015 were qualified dividends for federal tax purposes.

For example, if you owned 100 shares of Universal American Corp. mandatorily redeemable preferred stock on the record date of all four payments made in 2015, you received total distributions of $212.50. The entire $212.50 in distributions is currently taxable.

Please see your personal tax advisor to determine how this information should be used on your personal tax return. This information is meant as general information only.