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Question 1

12b-1 Fees

Answer 1

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 responding to investor inquiries and providing investors with information.

Question 2

401(k) Plan

Answer 2

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 These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.

Question 3

403(B) Plan

Answer 3

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

Question 4

529 College Savings Plan

Answer 4

A tax-advantaged way to save for future college expenses, such as tuition and housing.

Question 5

8-K

Answer 5

Public companies file Form 8-K, known as the “current report,” to the SEC to announce major events that shareholders should know about, including bankruptcy proceedings, a change in corporate leadership (such as a new director or officer) and preliminary earnings announcements.

Question 6

Annual Report (10K)

Answer 6

A report filed to the SEC by public companies that includes the company’s history, audited financial statements, a discussion of products and services, a review of the organization and its operations, and a discussion of the company’s major markets.

Question 7

Quarterly Reports (10Q)

Answer 7

Each quarter, public companies file reports to the SEC containing unaudited financial statements and information about the company’s operations in the previous three months.

Question 8

Roth 401(k) Plan

Answer 8

An employer-sponsored Roth 401(k) plan is similar to a traditional plan with one major exception. Contributions by employees are not tax deferred but are made with after-tax dollars. Income earned on the account from interest, dividends, or capital gains, is tax-free.

Question 9

Section 1035

Answer 9

This part of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying tax on the income and investment gains in your current account. But you may have to pay surrender charges on your old annuity if you are still within the surrender period.