Glossary
I
- Index Fund
An index fund is a passively managed mutual fund that tries to track the performance of a market index, such as the S&P 500. See also: Passive Management.
- IRA
An Individual Retirement Account (IRA) is a retirement plan for investors. There are two types of IRAs. The traditional IRA invests either before-tax money or after-tax money, deferring taxes on the before-tax contributions and earnings until the individual reaches age 59-1/2. Distributions from a traditional IRA are taxable except for return of any after-tax contributions. The Roth IRA invests after-tax money, with tax-deferred earnings. Distributions from a Roth IRA are tax-free if they are a return of contributions or if the individual has reached age 59-1/2.
- IRS
The IRS is the Internal Revenue Service of the United States, responsible for collecting taxes and enforcing U.S. tax law.
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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.
For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.
Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.
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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.
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Not FDIC-Insured. No Bank, State or Federal Guarantee. May Lose Value.