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© SEI 2022 For Intermediary Use Only. Do Not Distribute. 8 C. How does SPTC handle the Income Re-allocation process? SPTC is provided Income Re-allocation 'factors' by the asset issuer. The factor gives a breakdown by dividend on how the dividend's income is reported from a taxability perspective. Certain assets never need to perform Income Re-allocation, some will only do it on one dividend for the year, and some assets may re-allocate all dividends for the year. The underlying holdings of the asset can factor into how likely it is to re-allocate income. D. Why was an updated 1099DIV issued to the account owner? Sometimes asset issuers make corrections to the original Income Re-allocation information provided to SPTC. If a correction is made, SPTC will issue a corrected 1099 to the client with the updated Income Re- allocation information. SPTC will hold tax forms for final Income Re-allocation factors, but if the asset issuer makes a correction after they have finalized their factors, SPTC must update the tax form. E. Does Income Re-allocation show in the account? No. Income Re-allocation occurs directly in the tax system in February and does not update any postings in the system. As such, Income Re-allocation is indicated on the applicable tax forms issued and will not be reported on the accounts transactions or the investor's statements. F. How is the Income Re-allocation amount calculated? Example: Original dividend: payable 9/15/22, 2% on 10,000 shares = $200 Income Re-allocation announcement on 2/10/23 for 20% of original dividend on 9/15/22 to be reported as Federally Tax Exempt income and 80% to be reported as taxable income. The original dividend was reported as $200 taxable income. After the factors are applied, only $160 is considered taxable and the remaining $40 is reported as Federal Tax exempt income This Income Re-allocation will show on the 1099DIV tax information section but the account and investor statement will continue to report the dividend as $200 of taxable income. 6. Questions regarding Widely Held Fixed Investment Trusts (WHFITS): A. What asset classes are considered WHFIT's? Common WHFIT classes include: Mortgage Backed Security Pools or MBS assets. Unit Investment Trust or UIT assets and Commodity Trust. Real Estate Mortgage Investment Conduit (REMIC) Royalty Trust and Holding Company Depository Receipts (HOLDERS Trust) B. For accounts that hold WHFIT's, when will the tax forms be available? Generally, the asset issuer will not provide finalized reporting information until early March. As a result, accounts that hold WHFIT's will not receive a finalized 1099 until March 15. C. What are the general additional reporting requirements for WHFIT's? Regulations on WHFIT's require that additional written information be provided to holders of these assets in order to complete their individual tax returns. This information will be included with the final 1099 mailed from SEI Private Trust Company. This additional information includes items of gross income, items of expense, information on asset sales and dispositions, redemptions and sales of WHFIT units of the trust, and bond premium and market discount within the trust. Tax liability may be based on an amount greater than the cash received. Income from these assets reported on the 1099 will not match the asset's income in the account's transactions.

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