Category: Investor Definitions

529 plan document that has detailed information about the 529 plan; often called a disclosure statement, disclosure document, program description, or offering document.

A type of 529 plan that lets an account owner open an investment account to save for the account beneficiary’s qualified higher education expenses or tuition for elementary or secondary public, private, or religious schools.

A person who establishes an account for a student to save money for qualified higher education expenses or tuition for elementary or secondary public, private, or religious schools; also called the account holder or the saver.

A current or future student for whom the 529 account is established.

A type of tax-deferred retirement savings program available to employees of public schools, certain non-profits, and some members of the clergy.

An employer-sponsored retirement savings plan that gives employees a choice of investment options, typically mutual funds. Employees who participate in a traditional 401(k) plan have a portion of their pre-tax salary invested directly in the option or options they choose. These contributions and any earnings from the 401(k) investments are not taxed until they are… Continue reading 401(K) PLAN

12b-1 Fees are fees paid out of fund assets to cover the costs of marketing and selling fund shares. “Distribution fees” include fees to compensate brokers and others who sell fund shares, and to pay for advertising, and printing and mailing prospectuses to new investors. “Shareholder Service Fees” are fees that cover the cost of… Continue reading 12b-1 Fees