There are many ways to save for college and many choices to make. The InvestEd 529 Education Savings Plan makes saving simple.

Control, flexibility and transferability

When you open an Ivy Funds InvestEd 529 Plan account, you are the "owner" of the account for the benefit of your selected beneficiary, such as your child, grandchild, niece or nephew. So, if your selected beneficiary chooses not to go to college, you can simply transfer the account to another direct family member of the beneficiary or if you simply want to change the beneficiary you may. Also, any U.S. citizen or resident, including your friends or relatives, can contribute to an Ivy Funds InvestEd 529 Plan account.

High contribution limits, no income restrictions

With the Ivy Funds InvestEd 529 Plan, you can make contributions, until a maximum balance of $412,000 (2014-2015 academic year) is reached for all Program accounts per beneficiary. Plus, there are no income restrictions on the account owner, so you'll remain eligible to maintain your Ivy Funds InvestEd 529 Plan account regardless of your income.

Tax advantages

Earnings in your Ivy Funds InvestEd 529 Plan account grow federal income tax-deferred. And all withdrawals are federal income tax-free if they are applied to qualified higher education expenses, such as tuition, fees, room and board, and books. Please note that state and local taxes may apply. States may offer some tax breaks such as a deduction for contributions or income exemption on withdrawals.This information is based on current tax laws, regulations, rules and interpretations, which are subject to change at any time. Please consult your tax advisor regarding your individual circumstances.

The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency or purpose for or timing of distributions. Taxes are deferred until withdrawal. The earnings portion of a non-qualified withdrawal is subject to a 10% penalty as well as federal and/or state taxes.

Estate planning advantages

Especially important for grandparents or other relatives, contributions to an Ivy Funds InvestEd 529 Plan account are excluded from the donor's taxable estate for federal tax purposes (assuming the donor is not the beneficiary). Thanks to the annual gift tax exclusion, grandparents, other relatives and friends can contribute up to $70,000 ($140,000 for married couples) to each beneficiary and spread the contribution over five years for gift tax purposes, as long as they do not make additional contributions to the same beneficiary during the five years, by making an election on the federal gift tax return. Please remember that if the contributor dies before the end of the five-year period, the portion of the gift allocable to the years remaining in the five-year period would be in the contributor's estate for federal estate tax purposes.

It's easy to get started

You can become Ivy Funds InvestEd 529 Plan with as little as $750, or you can start with only $150 per fund and subsequently, a minimum of $50 per month if you contribute that amount regularly with an automatic investment plan created through the Ivy Funds InvestEd 529 Plan's Automatic Investment Service (AIS). As with any investment, there can be no assurance that periodic purchases using AIS will produce a profit or protect against investment loss in declining markets.

Investors should consider the investment objectives, risks, charges and expenses associated with the InvestEd Plan carefully before investing. This and other information is found in the InvestEd Portfolios prospectus, and the Ivy Funds prospectus, the Ivy Funds InvestEd 529 Plan Program Overview, and the Ivy Funds InvestEd 529 Plan Account Application. Please encourage your clients to read the prospectus carefully before investing. An investor should also consider, before investing whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 college savings plan.

Investment return and principal value will fluctuate, and it is possible to lose money by investing.

The Ivy Funds InvestEd 529 Plan is offered by Waddell & Reed, Inc. as part of the Arizona Family College Savings Program (the "Program"). Waddell & Reed, Inc. is one of multiple financial institutions eligible to offer investments under the Program. Accounts are not insured by the State of Arizona, the Trust, the Arizona Commission for Postsecondary Education, or any other governmental entity, Waddell & Reed, Inc., or any affiliated or related party, and neither the principal deposited nor the investment return is guaranteed by any of the above referenced parties.

The InvestEd Portfolios are managed by Waddell & Reed Investment Management Company, while the Ivy Funds are managed by Ivy Investment Management Company, both of which are affiliates of Waddell & Reed, Inc. InvestEd Portfolios and the Ivy Funds are distributed by Waddell & Reed, Inc., and Ivy Funds Distributor, Inc., respectively.

The Ivy Funds InvestEd 529 Plan offers multiple investment options, including sixteen Individual Fund Portfolios, three Age-Based Portfolios, and three Static Portfolios.

The Age-Based Portfolios are based on a beneficiary's college time horizon and seek an appropriate level of investment risk for that time horizon. Organized as a "fund of funds", the Age-Based Portfolios help diversify your investment among a variety of mutual funds within the Waddell & Reed Advisors Funds family. The Age-Based Portfolios consist of: the Growth Portfolio (ages 0 through 8), the Balanced Portfolio (ages 9 through 15) and the Conservative Portfolio (ages 16 and older). Each portfolio is a series of InvestEd Portfolios, a mutual fund registered under the Investment Company Act of 1940.

The Age-Based Portfolios are designed to invest in mutual funds with greater exposure to equity investments when the named beneficiary is between the ages of 0 through 8, a more balanced exposure to equity and fixed income investments when the named beneficiary is between the ages of 9 through 15, and a greater exposure to fixed income securities when the beneficiary reaches the age of 16 and is closer to commencing his or her postsecondary education. The balance in an Ivy Funds InvestEd 529 Plan account is automatically exchanged to a different Age-Based Portfolio within approximately thirty (30) days of the beneficiary's 9th and 16th birthdays.

The Static Portfolios option offers three actively managed portfolios allowing you to stay in the portfolio of your chosen risk tolerance, whether it be growth, balanced or conservative, regardless of beneficiary’s college time horizon.

Individual Mutual Funds

IASEX Asset Strategy Documents Track Fund
IVBEX Bond Documents Track Fund
ICFEX Core Equity Documents Track Fund
ICVEX Cundill Global Value Documents Track Fund
IDIEX Dividend Opportunities Documents Track Fund
IIBEX Global Income Allocation Documents Track Fund
IGNEX Global Natural Resources Documents Track Fund
IVHEX High Income Documents Track Fund
IICEX International Core Equity Documents Track Fund
ILCEX Large Cap Growth Documents Track Fund
IVLEX Limited-Term Bond Documents Track Fund
IMCEX Mid Cap Growth Documents Track Fund
IVEXX Money Market Documents Track Fund
IREEX Real Estate Securities Documents Track Fund
ISTEX Science and Technology Documents Track Fund
ISGEX Small Cap Growth Documents Track Fund

Growth Portfolio

0 - 8 YEARS OLD

65 - 100% equity funds

0 - 35% bond & income-producing

The range of Growth Portfolio net assets invested in equity funds will be from 65% to 100%; correspondingly, the range of net assets invested in bond and income-producing funds will be from 35% to 0%.

View Portfolio Detail Page
Underlying Fund Minimum Maximum Quarterly Profile
Ivy International Core Equity 0% 60%
WRA Core Investment Fund 0% 60%
WRA Dividend Opportunities Fund 0% 60% DOWNLOAD
WRA Value Fund 0% 40% DOWNLOAD
WRA Cash Management 0% 35%
WRA International Growth Fund 0% 30% DOWNLOAD
WRA Vanguard Fund 0% 30% DOWNLOAD
WRA New Concepts Fund 0% 25% DOWNLOAD
WRA Bond Fund 0% 25% DOWNLOAD
WRA Government Securities Fund 0% 25% DOWNLOAD
WRA High Income Fund 0% 25% DOWNLOAD
WRA Global Bond Fund 0% 25% DOWNLOAD
WRA Small Cap Fund 0% 20% DOWNLOAD

Balanced Portfolio

9 - 15 YEARS OLD

40 - 75% equity funds

25 - 60% bond & income-producing

The range of Balanced Portfolio net assets invested in equity funds will be from 40% to 75%; correspondingly, the range of net assets invested in bond and income-producing funds will be from 25% to 60%.

View Portfolio Detail Page
Underlying Fund Minimum Maximum Quarterly Profile
Ivy International Core Equity 0% 40%
WRA Cash Management 0% 60% DOWNLOAD
WRA Dividend Opportunities Fund 0% 50% DOWNLOAD
WRA Core Investment Fund 0% 40% DOWNLOAD
WRA Value Fund 0% 30% DOWNLOAD
WRA Bond Fund 0% 30% DOWNLOAD
WRA Government Securities Fund 0% 30% DOWNLOAD
WRA International Growth Fund 0% 25% DOWNLOAD
WRA Vanguard Fund 0% 25% DOWNLOAD
WRA High Income Fund 0% 25% DOWNLOAD
WRA Global Bond Fund 0% 25% DOWNLOAD
WRA New Concepts Fund 0% 20% DOWNLOAD

Conservative Portfolio

16+ YEARS OLD

0 - 40% equity funds

60 - 100% bond & income-producing

The range for the Conservative Portfolio net assets invested in equity funds will be from 0% to 40%; correspondingly, the range of net assets invested in bond and income-producing funds will be from 60% to 100%.

View Portfolio Detail Page
Underlying Fund Minimum Maximum Quarterly Profile
WRA Cash Management 0% 100%
WRA Government Securities Fund 0% 40% DOWNLOAD
WRA Core Investment Fund 0% 40% DOWNLOAD
WRA Dividend Opportunities Fund 0% 40% DOWNLOAD
WRA Value Fund 0% 30% DOWNLOAD
WRA Global Bond Fund 0% 40% DOWNLOAD
WRA Bond Fund 0% 40% DOWNLOAD
WRA High Income Fund 0% 20% DOWNLOAD
Q. What if my child (or Designated Beneficiary) receives a scholarship?
Q. What if my child doesn't go to college?
Q. Does the Ivy Funds InvestEd 529 Plan offer estate-planning benefits?
Q. I'm invested in another 529 plan. Can I transfer my account to an Ivy Funds InvestEd 529 Plan?
Q. Are the Ivy Funds InvestEd 529 Plan investments guaranteed?
Q. Can I still contribute to my Designated Beneficiary's Coverdell Education Savings Account?
Q. Do I have to select a college now?
Q. Can I borrow money against my Ivy Funds InvestEd 529 Plan account?
Q. Can my spouse and I set up a joint account?
Q. Can organizations establish Ivy Funds InvestEd 529 Plan scholarship programs?
Q. Who manages the Ivy Funds InvestEd 529 Plan?
Q. Is there a minimum amount I must invest to open an Ivy Funds InvestEd 529 Plan account?
Q. How do I make a withdrawal from my Ivy Funds InvestEd 529 Plan account?

1. The earnings portion of any non-qualified withdrawals (i.e., generally those not used for qualified higher education expenses) is subject to a federal tax and possibly state tax. In addition, the earnings portion of a non-qualified withdrawal is subject to an additional federal penalty in the form of an additional 10% tax on the earnings portion of the withdrawal. The 10% penalty does not generally apply to certain distributions made after the death or disability of the designated beneficiary or after the receipt of certain scholarships.

2. There may be federal gift or generation skipping transfer tax consequences if the new designated beneficiary is a member of a younger generation than the prior designated beneficiary.

3. Although the U.S. Department of Education has advised several 529 plans regarding the treatment of accounts in 529 plans for financial aid purposes, the treatment is subject to change by regulations, legislation or otherwise. Specific educational institutions may also treat 529 plan investments in a different manner. Accounts for which the designated beneficiary is also the account owner may be treated as if it were an asset of the parent for financial aid purposes.

4. The tax treatment and state law probate treatment of the designation of a successor account owner and the transfer of ownership to such successor is not certain and may vary depending on the particular facts and state law involved.

Investors should consider the investment objectives, risks, charges and expenses associated with the InvestEd Plan carefully before investing. This and other information is found in the InvestEd Portfolios prospectus, and the Ivy Funds prospectus, the Ivy Funds InvestEd 529 Plan Program Overview, and the Ivy Funds InvestEd 529 Plan Account Application. Please encourage your clients to read the prospectus carefully before investing. An investor should also consider, before investing whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 college savings plan.

Investment return and principal value will fluctuate, and it is possible to lose money by investing.

The Ivy Funds InvestEd 529 Plan is offered by Waddell & Reed, Inc. as part of the Arizona Family College Savings Program (the "Program"). Waddell & Reed, Inc. is one of multiple financial institutions eligible to offer investments under the Program. Accounts are not insured by the State of Arizona, the Trust, the Arizona Commission for Postsecondary Education, or any other governmental entity, Waddell & Reed, Inc., or any affiliated or related party, and neither the principal deposited nor the investment return is guaranteed by any of the above referenced parties.

The InvestEd Portfolios are managed by Waddell & Reed Investment Management Company, while the Ivy Funds are managed by Ivy Investment Management Company, both of which are affiliates of Waddell & Reed, Inc. InvestEd Portfolios and the Ivy Funds are distributed by Waddell & Reed, Inc., and Ivy Funds Distributor, Inc., respectively.

Interested in opening an Ivy Funds InvestEd 529 Plan account?
Investing is about making wise decisions. It begins with selecting a skilled financial advisor who will partner with you to determine the right investments -- ones that have demonstrated themselves over time through many market cycles -- to help you meet your long-term goals. Ivy Funds InvestEd 529 Plan offers these kinds of investments. Talk to your advisor today about setting up an Ivy Funds InvestEd 529 Plan account.

Already an Ivy Funds InvestEd 529 Plan account holder or need additional information?
If you have questions, comments or concerns about your Ivy Funds InvestEd 529 Plan account, please contact our client services department.

Toll-free Phone Number
1.800.777.6472
Automated account access and fund information are available 24 hours a day. Client service representatives are available 7:30 a.m. to 7 p.m. CST, Monday through Friday.

Toll-free Fax
1.800.532.2749

Email
E-mail your comments or questions

Postal Address
InvestEd Client Services
Post Office Box 29217
Shawnee Mission, KS 66201-9217

Investors should consider the investment objectives, risks, charges and expenses associated with the InvestEd Plan carefully before investing. This and other information is found in the InvestEd Portfolios prospectus, and the Ivy Funds prospectus, the Ivy Funds InvestEd 529 Plan Program Overview, and the Ivy Funds InvestEd 529 Plan Account Application. Please encourage your clients to read the prospectus carefully before investing. An investor should also consider, before investing whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 college savings plan.

Investment return and principal value will fluctuate, and it is possible to lose money by investing.

The Ivy Funds InvestEd 529 Plan is offered by Waddell & Reed, Inc. as part of the Arizona Family College Savings Program (the "Program"). Waddell & Reed, Inc. is one of multiple financial institutions eligible to offer investments under the Program. Accounts are not insured by the State of Arizona, the Trust, the Arizona Commission for Postsecondary Education, or any other governmental entity, Waddell & Reed, Inc., or any affiliated or related party, and neither the principal deposited nor the investment return is guaranteed by any of the above referenced parties.

The InvestEd Portfolios are managed by Waddell & Reed Investment Management Company, while the Ivy Funds are managed by Ivy Investment Management Company, both of which are affiliates of Waddell & Reed, Inc. InvestEd Portfolios and the Ivy Funds are distributed by Waddell & Reed, Inc., and Ivy Funds Distributor, Inc., respectively.