AllianceBernstein Coverdell
Education Savings Account

Overview

A
pplication

Transfer of Assets Form

Automatic Investment Form
Investment Products Offered
• Are Not FDIC Insured
• May Lose Value
• Are Not Bank Guaranteed
The AllianceBernstein Coverdell Education
Savings Account (ESA)
An AllianceBernstein Coverdell ESA is a great way to save for a child’s education.
It offers tax savings and investment flexibility. Unlike Section 529 college savings plans,
withdrawals from a Coverdell ESA can be used for qualified education expenses for
elementary and secondary school expenses as well as for college expenses.
A Coverdell ESA—formerly known as an education
IRA—is a tax-advantaged education savings account
that you can establish for a child under the age of
18. Total contributions to a Coverdell ESA for a child
can be up to $2,000* per year. While contributions
are made with after-tax dollars, distributions used
to pay qualifying education expenses are tax-free
at the federal level. States may also exempt such
distributions from state income tax.
Who Can Contribute
Joint Filers
Single Filers
Eligibility Requirements
The beneficiary (the child for whom the contribution is being made) must be under the age of
18 when the contribution is made, unless the
beneficiary has special needs (physical, mental or
emotional conditions), as determined by the Internal
Revenue Service (IRS). The depositor (the individual
making the contribution) must meet certain income
requirements (see next column) in order to be
eligible to make a full or partial contribution to
an ESA. Anyone, including the beneficiary, may
contribute to an ESA established on the beneficiary’s behalf. The depositor does not have to be
related to the beneficiary.
Contributions
The total contributions to all ESAs for a beneficiary
cannot exceed $2,000* per year, regardless of how
many investors contribute to the accounts. Investors
may establish ESAs for as many beneficiaries as they
wish. Individuals may make a contribution for the
year as late as the tax-filing deadline for the given
year, not including extensions (usually April 15). Any
If Your Modified
Adjusted Gross
Income Is:
You Are
Eligible for:
$190,000 or less
Full contribution
$190,001 to $220,000
Partial contribution
More than $220,000
No contribution
$95,000 or less
Full contribution
$95,001 to $110,000
Partial contribution
More than $110,000
No contribution
excess contributions made to the account must be
withdrawn before June 1 of the tax year following
the year in which the contributions were made, to
avoid penalties.
The Economic Growth and Tax Relief Reconciliation
Act of 2001 made several changes to ESAs that
became effective in 2002. Those changes include,
among other things: increasing the annual contribution limit for a beneficiary from $500 to $2,000;
making distributions for qualified elementary and
secondary education expenses federal-income-tax
free; and allowing contributions for a specific year
to be made up to the due date of the contributor’s
federal income tax return for that year (not including
extensions). These changes were scheduled to
expire on December 31, 2012 but Congress made
them permanent with the passage of the American
Taxpayer Relief Act of 2012. If you need more information, please consult your tax advisor.
This is not, and you should not consider it to be, legal or tax advice. The tax rules are complicated, and their impact on a particular individual
may differ depending on the individual’s specific circumstances. Please consult with your legal or tax advisor regarding your specific situation.
*This limit does not apply to beneficiaries with special needs, as determined by the IRS.
1
Distributions
Distributions for qualified higher education,
elementary and secondary expenses are federalincome-tax free. Earnings on distributions that
are not used for the beneficiary’s qualified
education expenses will be subject to income tax
and a 10% penalty. Any remaining balance in
an ESA must generally be paid to the beneficiary
within 30 days of his or her 30th birthday. (This
limit does not apply to beneficiaries with special
needs, as determined by the IRS.) Alternatively,
the beneficiary of the ESA can be changed to a
member of the family of the previous beneficiary.
An ESA can be rolled over to a 529 plan but cannot
be rolled over to an IRA, such as a Traditional, Roth,
SEP or SIMPLE IRA.
Qualifying education expenses also include
elementary and secondary education expenses.
In addition to tuition, fees, books, supplies,
equipment and room and board, qualifying
elementary and secondary education expenses
may include tutoring, computer equipment,
Internet access and software to be used by the
beneficiary during the years he or she is in school.
Benefits of a Coverdell ESA:

ithdrawals that are used to pay the
W
beneficiary’s qualified education expenses are
completely tax free at the federal level.

ualified education expenses include elementary
Q
and secondary school expenses, as well as
post-secondary and college expenses.

Y ou have complete freedom to choose the
investments you put into the account.

Y ou can change the beneficiary without penalty
if certain conditions are met.

Y ou can contribute to a 529 plan and a Coverdell
ESA in the same year for the same beneficiary.
Qualifying Education Expenses
For the purposes of a Coverdell ESA, qualifying
education expenses include tuition, fees, books,
supplies and equipment required for enrollment or
attendance at an accredited post-secondary school
(college) that is eligible to participate in the federal
student-aid program. For students enrolled at least
half-time, qualifying education expenses include
room and board.
2
Information You’ll Need to Fill Out Your Forms
This brochure contains the following forms (please read the instructions carefully):
 Education Savings Account Application
 Transfer of Assets Form

Automatic Investment Form
Complete, copy and return the applications and forms that apply to you. Retain the Disclosure Statement and Custodial Agreement
along with copies of your application and forms for your records.
Fund Numbers/Share Class
Fund Numbers/Share Class
Initial
Sales Charge
Asset-Based
Sales Charge
Initial
Sales Charge
Asset-Based
Sales Charge
A
C
A
C
AB Asset Allocation/Multi-Asset Funds
Emerging Markets Multi-Asset Portfolio
AB Alternative Funds
99
300
Wealth Strategies
162
363
096
396
AB All Market Total Return Portfolio
175
375
Select US Long/Short Portfolio
130
330
Conservative Wealth Strategy
187
387
Unconstrained Bond Fund
124
324
Wealth Appreciation Strategy
151
351
AB Fixed Income Funds
AB US Equity Funds
Taxable Bond Funds
Core
AB Income Fund
028
287
AB Relative Value Fund
094
394
Bond Inflation Strategy
116
306
Core Opportunities Fund
102
302
Credit Long/Short
128
328
Select US Equity Portfolio
132
376
Global Bond Fund
055
355
High Income Fund
166
366
Growth
All Market Income
156
856
High Yield
144
319
Concentrated Growth Fund
033
333
Intermediate Bond Portfolio
104
304
Discovery Growth Fund
044
344
Limited Duration High Income Portfolio
137
393
Growth Fund
031
331
Short Duration Portfolio
189
389
Large Cap Growth Fund
078
378
Small Cap Growth Fund
026
326
136
336
Discovery Value Fund
157
357
Equity Income Fund
009
309
Value Fund
153
353
Value
Cash Management
AB Government Exchange Reserves
AB Multi-Manager Select Retirement Funds
AB Multi-Manager Select Retirement Allocation Fund
2215
2415
AB Multi-Manager Select Retirement 2010
2216
2416
AB Multi-Manager Select Retirement 2015
2217
2417
AB International/Global Equity Funds
AB Multi-Manager Select Retirement 2020
2218
2418
Core
AB Multi-Manager Select Retirement 2025
2219
2419
AB Multi-Manager Select Retirement 2030
2220
2420
AB Asia Ex-Japan Equity Portfolio
165
865
AB Sustainable Global Thematic Fund
082
382
AB Multi-Manager Select Retirement 2035
2221
2421
Blended Style International Portfolio
164
364
AB Multi-Manager Select Retirement 2040
2222
2422
Concentrated International Growth Portfolio
190
890
AB Multi-Manager Select Retirement 2045
2223
2423
Global Core Equity
147
847
AB Multi-Manager Select Retirement 2050
2224
2424
International Strategic Core
021
821
AB Multi-Manager Select Retirement 2055
2225
2425
112
312
Global Real Estate Investment Portfolio
110
310
International Value Fund
159
359
Growth
International Growth Fund
Value
3
All Market Real Return
Global Risk Allocation Fund
AllianceBernstein Coverdell Education Savings
Account Application

Please print clearly in blue or black ink.

Keep a completed copy for your records.
a completed and signed application to AllianceBernstein Investor Services, Inc., P.O. Box 786003,
San Antonio, TX 78278-6033; for overnight delivery, send to 8000 IH 10 W, 4th Floor, San Antonio, TX 78230.
Send

Please make checks payable to AllianceBernstein.

For help filling out this application, call Customer Service at (800) 221 5672, 8:30 a.m. to 7:00 p.m. (ET), Monday–Friday.
1. Beneficiary (Student/Child) Information
Last Name
First Name
MI
Address
City
ZIP Code
Social Security Number of Beneficiary (required to open account)
Date of Birth (MM/DD/YYYY)*
State
Daytime Phone Number
2. Responsible Individual Information (Parent/Legal Guardian)
Please check one:
Mother
Last Name*
Father
Guardian
First Name*
MI*
State
ZIP Code
Mailing Address
City
Residential Street Address* (must provide if mailing address is a Post Office Box)
City
State
Home Phone Number
Daytime Phone Number
Social Security Number of Responsible Individual*
Date of Birth (MM/DD/YYYY)*
*Required by law
ESAAPP0517 | Page 1 of 3
ZIP Code
3. E-Delivery Options
You can now choose to receive your account statements (and periodic important updates) in a quick, convenient, and earth-friendly way. All
information will be stored online for easy viewing and retrieval.
Email Address
Choose which information you would like to receive via email:
A
ll my quarterly statements
and my year-end statement.
A
ll my quarterly statements, but I prefer
my year-end statement be printed and
mailed to me.
My prospectus, annual
report, and related
compliance materials.
My tax forms and relevant tax
resources and information.
Note: If e-Delivery is not selected, all documents will be printed on paper and sent by US Mail. (Standard delivery times apply.)
4.Depositor (Person contributing funds, if different from Responsible Individual)
Last Name*
First Name*
MI*
Address*
City
ZIP Code
Social Security Number of Depositor*
Date of Birth (MM/DD/YYYY)*
State
Daytime Phone Number
Relationship
5. Account Information
Please check one of the following:
Open a new account with the check enclosed for $__________________________.
Transfer an existing Coverdell Education Savings Account to an AllianceBernstein Coverdell Education Savings Account.
(Complete and return the Transfer of Assets form.)
T ransfer an existing Coverdell Education Savings Account to another qualified family member.
(Complete and return the Transfer of Assets form.)
The following fee is enclosed with this application:
$25 annual. My AllianceBernstein ESA accounts total less than $25,000.
– or – Deduct annually from my account balance.
No fee. My AllianceBernstein ESA accounts total more than $25,000.
6. Fund Selection and Contribution Information
Refer to page 3. (Attach a separate sheet if necessary.)
Indicate Three- or FourDigit Fund Number
Fund Name and
Class of Shares
Indicate either the tax year
for the current contribution OR
write “rollover” or “transfer”
Indicate either the amount of the current
contribution OR, if a check is not enclosed,
the percentage of rollover or transfer
The minimum initial investment per Fund is $2,000. Minimum is waived if a $150 Automatic Contribution Plan is established. Please refer
to the Coverdell ESA Automatic Investment Form located in this brochure.
*Required by law
ESAAPP0517 | Page 2 of 3
7. Reduced Sales Charges (Class A Only)
A. Rights of Accumulation
To qualify for a reduced sales charge, list your account numbers or Taxpayer Identification Number of other AllianceBernstein funds that you, your
spouse or minor children already own. (Attach a separate sheet if necessary.)
Account Number
Relationship
Account Number
Relationship
B. Statement of Intent
I want to reduce my sales charge by agreeing to invest the following amount over a 13-month period. If the full amount indicated is not
purchased within 13 months, I understand that an additional sales charge must be paid from my account.
$100,000
$250,000
$500,000
$1,000,000
AllianceBernstein Mutual Funds will use the higher of cost or current NAV of the investor’s existing investments as well as those of accounts with
which it is combined via Rights of Accumulation toward the fulfillment of the Statement of Intent.
8. Financial Advisor Information
Please ask your Financial Advisor for this information.
Name of Firm
Branch Office Address
Telephone Number
Name of Financial Advisor
Branch Office Code
Financial Advisor Number
Branch Manager or Back Office Signature (Required)
9. Certification and Signature
I hereby establish an AllianceBernstein Coverdell Education Savings Account under Section 530 of the Internal Revenue Code of 1986, as amended,
on behalf of the above-named beneficiary, with Ascensus Trust Company as Custodian, incorporating the provisions of the accompanying IRS Form
5305-EA. I have received, read and understand the Disclosure Statement, Custodial Agreement and current prospectus of each Mutual Fund designated above for investment. I understand that this Coverdell Education Savings Account will not become effective until accepted by the Custodian.
I certify under the penalty of perjury that the Social Security numbers of the beneficiary and responsible individual shown above are correct.
AllianceBernstein is required by law to obtain, verify and record certain personal information from you or persons on your behalf in order
to establish the account. Required information includes name, date of birth, permanent residential address and Social Security number or
Taxpayer Identification Number. We may also ask to see other identifying documents. If you do not provide the information, AllianceBernstein
may not be able to open your account. By signing below, you agree to provide this information and confirm that this information is true and
correct. If we are unable to verify your identity, or that of another person(s) authorized to act on your behalf, or if we believe we have identified potentially criminal activity, we reserve the right to take action as we deem appropriate, which may include closing your account.
Responsible Individual’s Signature
Date
Note: In addition to the signature of the Responsible Individual, if a Depositor is listed in section 4, the Depositor must sign below.
I join in the certification and agreement described in this Section 9 and delegate my rights and obligations under the Custodial Agreement
to the Responsible Individual.
Depositor’s Signature
ESAAPP0517 | Page 3 of 3
Date
This page has been intentionally left blank
AllianceBernstein Coverdell Education Savings Account
Transfer of Assets Form

Please print clearly in blue or black ink.

Keep a completed copy for your records.
a completed and signed application to AllianceBernstein Investor Services, Inc., P.O. Box 786003,
San Antonio, TX 78278-6033; for overnight delivery, send to 8000 IH 10 W, 4th Floor, San Antonio, TX 78230.
Send

Please make checks payable to AllianceBernstein.

For help filling out this application, call Customer Service at (800) 221 5672, 8:30 a.m. to 7:00 p.m. (ET), Monday–Friday.
1.Beneficiary (Student/Child) Information (When transferring funds from one student’s account to another,
list the name of the individual receiving the funds in this section.)
Last Name
First Name
MI
Address
City
State
Social Security Number of Beneficiary
Date of Birth (MM/DD/YYYY) Daytime Phone Number
ZIP Code
2. Responsible Individual Information (Parent/Legal Guardian)
Please check one:
Mother
Father
Guardian
Last Name
First Name
MI
Address
City
State
Social Security Number of Responsible Individual
Date of Birth (MM/DD/YYYY) Daytime Phone Number
ZIP Code
3. Account Information
Please check one of the following:
T ransfer from an existing Coverdell Education Savings Account maintained with another custodian or trustee to an AllianceBernstein
Coverdell Education Savings Account.
Transfer AB Coverdell Savings Account number __________________________ from the Custodian or Trustee listed in Section 5 to the
Beneficiary listed in Section 1.
ESATRANSFER0517 | Page 1 of 3
4. Fund Selection and Contribution Information
Please refer to page 3 of the brochure for the information necessary to complete this section. (Attach a separate sheet if necessary.)
Indicate Three- or FourDigit Fund Number
Fund Name and
Class of Shares
Indicate either the tax year
for the current contribution OR
write “rollover” or “transfer”
Indicate either the amount of the current
contribution OR, if a check is not enclosed,
the percentage of rollover or transfer
Minimum initial investment per Fund is $2,000. Transfer proceeds that do not meet the Fund minimums will be returned to the remitter.
The undersigned Responsible Individual acknowledges having sole responsibility for the foregoing investment choices and having received
and read a current prospectus for each fund selected.
5. Current Custodian or Trustee Information
Name of Current Custodian or Trustee
Contact Person
Phone Number
Address
State
City
ZIP Code
This authorization instructs my current Trustee/Custodian to transfer:
All of the Coverdell Education Savings Account funds held in account number _________________________ to AllianceBernstein at the
address below.
— or —
Part of the Coverdell Education Savings Account funds ($________________ or __________%)
held in account number ____________________________________ to AllianceBernstein at the address below.
Please send all funds to AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6033;
for overnight delivery, send to 8000 IH 10 W, 4th Floor, San Antonio, TX 78230.
ESATRANSFER0517 | Page 2 of 3
6. Certification and Signature
By signing below, I authorize and direct the current Custodian or Trustee to make the transfer specified on this form.
Responsible Individual’s (Parent/Guardian) Signature
Date
If required by your present Custodian, please provide Medallion Signature Guarantee Stamp here:*
7. Acceptance by New Custodian
To Custodian or Trustee: AllianceBernstein will accept the transfer described above.
Please include the following information on the check (to be completed by AllianceBernstein):
Reference Number and Account Number
AllianceBernstein Employee to contact for additional information:
Name
Title
Authorized Signature
Date
Phone Number
*A Medallion Signature Guarantee is a guarantee that a signature is true and correct. The Medallion Signature Guarantee is available at a financial institution that is an eligible
guarantor, including banks, brokers, dealers, credit unions, national securities exchanges and savings associations.
ESATRANSFER0517 | Page 3 of 3
This page has been intentionally left blank
AllianceBernstein Coverdell Education Savings Account
Automatic Investment Form

Please print clearly in blue or black ink.

Keep a completed copy for your records.
a completed and signed application to AllianceBernstein Investor Services, Inc., P.O. Box 786003,
San Antonio, TX 78278-6033; for overnight delivery, send to 8000 IH 10 W. 4th Floor, San Antonio, TX 78230.
Send

For help filling out this application, call Customer Service at (800) 221 5672, 8:30 a.m. to 7:00 p.m. (ET), Monday–Friday.
1. Beneficiary (Student/Child) Information
Last Name
First Name
MI
Address
City
State
Social Security Number of Beneficiary
Date of Birth (MM/DD/YYYY)
Daytime Phone Number
ZIP Code
2. Responsible Individual Information (Parent/Legal Guardian)
Please check one:
Mother
Father
Guardian
Last Name
First Name
MI
Address
City
State
Social Security Number of Responsible Individual
Date of Birth (MM/DD/YYYY)
Daytime Phone Number
ZIP Code
3. Automatic Investment Information
A. Please check one of the following:
Please make automatic investments to my existing AllianceBernstein Coverdell Education Savings Account.
Account Number
E stablish a new account with an automatic investment plan (complete and attach an AllianceBernstein Coverdell Education Savings
Account application).
B. Withdraw from my bank account via EFT*
I authorize AllianceBernstein to draw on my bank account for contributions to my Coverdell ESA fund account(s) as indicated below.
For existing accounts, the automatic investment minimum is $50 per month. For new accounts with no initial investment, the automatic
investment minimum is $150 per month.
Note: All contribution amounts will be treated as current-year contributions.
1. Fund Number
Beginning Date (MM/DD)
Amount
Frequency
2. Fund Number
Beginning Date (MM/DD)
Amount
Frequency
3. Fund Number
Beginning Date (MM/DD)
Amount
Frequency
Frequency
M = Monthly
Q = Quarterly
*Electronic Funds Transfer. Your bank must be a member of the National Automated Clearing House Association (NACHA).
ESAAUTOINVAPP0517 | Page 1 of 2
A = Annually
4. Bank Information
Note: Your financial institution must be a US bank.
Checking Account
Your Bank Account Number Your Bank’s ABA Routing Number
Savings Account
Account Type (check one)
Please Tape a Preprinted Voided Check Here.
The above services cannot be established without a preprinted voided check. If you are using a savings account, rather than a checking account,
please attach a preprinted deposit slip. The check or deposit slip provided must be an original (copies cannot be accepted) and must include the
following: Bank Routing Number, Bank Account Number and Bank Account Registration (name and address of account holder). If you are unable
to provide these items, please submit a letter from your bank (on bank letterhead) confirming your account information.
For EFT transactions, the Fund requires signatures of
bank account owners exactly as they appear on bank
records. If the registration at the bank differs from that
on the AllianceBernstein mutual fund, all owners of the
bank account must authorize the draft by signing below:
Bank Account Registration
ABA Routing #
Check #
Signature
(All account owners must sign)
Date (MM/DD/YYYY)
Signature Date (MM/DD/YYYY)
Bank Account #
5.Signature
Authorized Account Owner Signature
Date
If owner on bank account differs from the person registered on the AllianceBernstein account, the bank account owner’s signature must be
Medallion Signature Guaranteed.
Authorized Signature of Bank Account Owner
Date
If required, provide Medallion Signature Guarantee Stamp here:*
*A Medallion Signature Guarantee is a guarantee that a signature is true and correct. The Medallion Signature Guarantee is available at a financial institution that is an eligible
guarantor, including banks, brokers, dealers, credit unions, national securities exchanges and savings associations.
ESAAUTOINVAPP0517 | Page 2 of 2
AllianceBernstein Coverdell Education Savings Account
Disclosure Statement
This Disclosure Statement is provided so that you are informed and understand the nature of Coverdell Education Savings Accounts (“ESAs,” formerly
known as “Education Individual Retirement Accounts”) in general, and of an
AllianceBernstein Coverdell Education Savings Account (an “AllianceBernstein
ESA”), in particular. An AllianceBernstein ESA that is established on the date
you receive this Disclosure Statement, or less than seven days thereafter, may
be revoked at any time within seven days after the date the AllianceBernstein
ESA is established. An AllianceBernstein ESA established seven days or more
after the date of receipt of this Disclosure Statement may not be revoked.
Mailing or delivering a notice of revocation to AllianceBernstein Investor
Services, Inc. within the seven-day period of establishment can effect a
revocation. The postmark date of first-class mail, properly addressed and
mailed postage-paid in the United States, is considered the mailing date (or,
if sent by certified or registered mail, the date of certification or registration).
A proper revocation is to be mailed or delivered to the following address:
AllianceBernstein Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6033
If during the seven-day period described above, a material adverse change
in the information set forth in this Disclosure Statement or a material change
in the governing instrument used in establishing the AllianceBernstein ESA
becomes effective, you are entitled to revoke the AllianceBernstein ESA on or
before a date not less than seven days after the date on which you received
such amendment under the same revocation procedure set forth above.
Upon revocation in accordance with the foregoing procedures, the entire
amount you contributed to the AllianceBernstein ESA will be returned to you.
1. Coverdell Education Savings Accounts—General Description
A Coverdell Education Savings Account (“ESA”) is a trust or custodial account
that is created or organized in the United States exclusively for the purpose
of paying “qualified higher education expenses” and “qualified elementary
education expenses” (collectively sometimes referred to herein as “qualified
expenses”) of the designated beneficiary of the account (referred to herein
as the “child” or “student”). Parents, grandparents, other family members,
a child himself or herself, friends or any other individual may contribute to
the child’s ESA, provided that total contributions for a particular taxable
year do not exceed $2,000 and that the contributions are made before the
child attains age 18. However, contributions can be made for a beneficiary
older than age 18 who has special needs (including a learning disability), as
determined under regulations prescribed by the Internal Revenue Service.
Amounts deposited in the account grow tax-free until distributed, and the
child will not owe federal income tax on any withdrawal from the account if
the child’s qualified expenses for the year of the withdrawal equal or exceed
the amount withdrawn. If the child does not need the money for education,
the account balance can be rolled over to an ESA of a qualifying member of
the child’s family (see Section 4 below) who can use it for his or her qualified
expenses. Amounts withdrawn from an ESA that exceed the child’s qualified higher education expenses in the year of the withdrawal are generally
subject to federal income tax and to an additional federal tax of 10 percent.
There are two federal income tax credits relating to education: the Hope
Scholarship Credit and the Lifetime Learning Credit. An eligible taxpayer
can claim one of these credits for a student’s education expenses even if a
student receives a tax-free withdrawal from an ESA for a particular tax year,
as long as the withdrawal is not used for the same expenses for which a
credit was claimed. In addition, certain other tax benefits available for education expenses are reduced by an amount equal to any payments from an ESA
attributable to its investment appreciation in the ESA.
2. Qualified Higher Education Expenses and Qualified Elementary
and Secondary Education Expenses
“Qualified higher education expenses” are expenses for tuition, fees, books,
supplies and equipment required for the student’s enrollment or attendance
at an “eligible educational institution” as well as amounts contributed to a
“qualified tuition program.” A student may make a tax-free withdrawal from
an ESA to pay qualified higher education expenses even if the student is not a
full-time student. If the student is enrolled at an eligible educational
institution as at least a half-time student (i.e., enrolled for at least half the
full-time academic workload for the course of study the student is pursuing
as determined under the standards of the educational institution he or she
is attending), the student’s qualified higher education expenses also include
the room and board expenses up to the amount applicable to the student in
calculating the cost of attendance for federal financial aid programs under
Section 472 of the Higher Education Act of 1965. Almost all accredited public
or private colleges, universities, vocational schools and other postsecondary
educational institutions are eligible educational institutions. Qualified higher
education expenses also include contributions to a “qualified tuition program”
(sometimes called a “529 plan”) from the ESA for the student’s benefit.
Qualified elementary and secondary education expenses are expenses for
tuition, fees, academic tutoring, special-needs services in the case of a
special-needs beneficiary, books, supplies and other equipment that are
incurred in connection with the enrollment or attendance of the beneficiary
as an elementary or secondary school student at a public, private or religious
school. Such expenses also include expenses for room and board, uniforms,
transportation and supplementary items that are required by the school. In
addition, expenses for the purchase of any computer technology or equipment if these items are to be used by the student and his or her family during
any of the years the student is in school are also considered qualified elementary and secondary expenses.
3. Contributions to an ESA
Contributions to an ESA may only be made in cash and are not deductible
for federal income tax purposes. The contributions may be placed in a single
ESA or in multiple ESAs. Subject to the aggregate $2,000-per-year limit for
all contributors, any individual may in each calendar year contribute up to
$2,000 to a child’s ESA provided the contributor’s federal modified adjusted
gross income (“MAGI”) for the contributor’s corresponding taxable year is
no more than $95,000 ($190,000 for married taxpayers filing jointly). The
$2,000 maximum contribution per child is gradually reduced for individuals
with MAGI between $95,000 and $110,000 (between $190,000 and
$220,000 for married taxpayers filing jointly). To figure the contribution limit,
multiply $2,000 by a fraction: the numerator is your MAGI minus $95,000
($190,000 in the case of a joint return); the denominator is $15,000 ($30,000
in the case of a joint return). Subtract the result from $2,000. This is the
amount you can contribute.
Beginning with contributions for tax year 2002, contributions to an ESA for a
year may be made up to the due date of the contributor’s federal income tax
return for that year (not including extensions).
4. Rollover Contributions to and from an ESA
Assets in an ESA can be rolled over to another ESA established for the
benefit of the same child or a qualifying member of that child’s family, or
the designated beneficiary of an existing ESA can be changed to a qualifying
member of the child’s family. An amount is rolled over if it is paid to another
ESA on a date within 60 days after the date of the withdrawal and no
other rollover had been made from the source ESA within 12 months of the
withdrawal. It may be more convenient to change the designated beneficiary
of an ESA from one child to another if the full amount of the ESA is to be
held for the benefit of a single new designated beneficiary. Such a rollover
or change does not trigger a tax, provided the new designated beneficiary
is a qualifying member of the child’s family who has not attained age 30 as
of the date of the rollover or change. Qualifying family members include the
designated beneficiary’s children and their descendants, stepchildren and
their descendants, siblings and their children.
5. Investment and Holding of Contributions
Contributions to an ESA, and the earnings thereon, are to be invested in
investments that AllianceBernstein Investments, Inc. makes available for
that purpose, including mutual funds for which AllianceBernstein L.P. acts
as investment advisor. The responsible individual (or an investment advisor
properly appointed by the responsible individual with respect to the investment of all or a portion of the assets of the AllianceBernstein ESA) must
specify the actual investments from among these alternatives. No part of
the assets of an ESA may be invested in life-insurance contracts. Except as
provided in Section 4 above, the assets in an AllianceBernstein ESA are held
in a custodial account exclusively for the benefit of the child. The balance
in the AllianceBernstein ESA represents a separate account, which is clearly
identified as an ESA for the benefit of the child and generally may not be
commingled for investment with property of any other individual.
6. Federal Income Tax Treatment
When an amount is withdrawn from a student’s ESA, the withdrawal will
be free from federal income tax to the extent the amount withdrawn does
not exceed the student’s qualified expenses (see Section 2 above) in the
calendar year in which the withdrawal is made. If a withdrawal is made from
an ESA (and not properly rolled over) and the designated beneficiary does
not have qualified expenses during the taxable year at least equal to the
amount withdrawn, a portion of the withdrawal will be subject to federal
income tax. This taxable portion is the amount withdrawn in excess of the
qualified education expenses that represents earnings that have accumulated
tax-free in the account. The taxable portion of a withdrawal is also subject to
an additional tax of 10 percent. This additional tax, however, does not apply
to withdrawals made on account of the designated beneficiary’s death or
disability (as defined). Neither does this additional tax apply to the taxable
portion of any withdrawals made in a year a student receives a scholarship,
provided the withdrawal does not exceed the amount of the scholarship. The
additional tax also does not apply to withdrawals, which are returns of excess
contributions and earnings thereon. The responsible individual for an ESA is
required to maintain a record of the amounts contributed to the ESA.
7. Mandatory Distributions
Any remaining balance in an ESA is required to be distributed to the designated beneficiary of the ESA within 30 days of his or her attaining age 30.
However, this age 30 distribution requirement does not apply to a beneficiary
who has special needs (including a learning disability), as determined under
regulations prescribed by the Internal Revenue Service. The balance in an ESA
also is required to be distributed to the estate of the designated beneficiary
within 30 days of his or her death. Since it is not clear as to how the rules
regarding rollovers and changes of beneficiaries apply to these mandatory
distributions, to the extent possible, rollovers or changes of beneficiaries
should be considered prior to a designated beneficiary’s attaining age 30.
8. Penalties for Excess Contributions
If more than $2,000 is contributed to all ESAs of which the same child is the
designated beneficiary for a calendar year, the amount over $2,000 is an
“excess contribution.” An excess contribution is subject to a 6 percent excise
tax for each year it remains in the account, unless the excess contribution
(and any earnings attributable to it) is withdrawn from the child’s account (or
accounts) before June 1 of the year following the year in which the contribution was made.
9. Prohibited Transactions
The assets of an ESA are not permitted to be used in certain transactions with
related parties, so-called prohibited transactions. Prohibited transactions include
pledging assets of an ESA as collateral. If a prohibited transaction occurs, the
amount involved will be subject to federal income and penalty taxes.
10. Reports to the Internal Revenue Service
The designated beneficiary may be required to file a form with his or her
federal income tax return for any tax year in which the 6 percent excess
contribution tax referred to above is owed or in any tax year a withdrawal is
made from the ESA that is not used for qualifying higher education expenses.
11. Financial Information
Growth in value of mutual fund shares and any other investments held in an
AllianceBernstein ESA can be neither guaranteed nor projected.
12. Custodial Fees
The current charge for an AllianceBernstein ESA with an account balance
of $25,000 or less is a $25 annual maintenance fee. A portion of the fee
is remitted to AllianceBernstein Investor Services, Inc. to compensate that
organization for its services with respect to the AllianceBernstein ESA. The
fee may be modified from time to time.
13. Charging of Taxes, Fees and Expenses
Any income or other taxes assessed against or with respect to an
AllianceBernstein ESA, reasonable administrative expenses of the custodian
and the custodian’s compensation, to the extent not paid directly, may, in
the discretion of the custodian, be charged against and paid from the assets
of the AllianceBernstein ESA. If an investment advisor has been properly
appointed, the compensation of an investment advisor and any other direct
investment-related expenses of the custodial account may also be charged
against and paid from the assets of the custodial account.
14. Miscellaneous
Additional information about ESAs is provided in IRS Publication 970, which
is available online at www.irs.gov.
AllianceBernstein Coverdell Education Savings Account
Custodial Agreement
Form 5305-EA (Rev. October 2010) under Section 530 of Internal Revenue Code
The Depositor whose name appears on the Application is establishing a
Coverdell Education Savings Custodial Account under section 530 for the
benefit of the designated beneficiary whose name appears on the Application
exclusively to pay for the qualified elementary, secondary and higher education expenses, within the meaning of section 530(b)(2) of such designated
beneficiary. The Depositor has assigned the custodial account the sum
indicated on the Application. The Depositor and the Custodian make the
following agreement:
Article I
The custodian may accept additional cash contributions provided the
designated beneficiary has not attained the age of 18 as of the date such
contributions are made. Contributions by an individual contributor may be
made for the tax year of the designated beneficiary by the due date of the
beneficiary’s tax return for that year (excluding extensions). Total contributions that are not rollover contributions described in section 530(d)(5) are
limited to $2,000 for the tax year. In the case of an individual contributor, the
$2,000 limitation for any year is phased out between modified adjusted gross
income (AGI) of $95,000 and $110,000. For married individuals filing jointly,
the phase-out occurs between modified AGI of $190,000 and $220,000.
Modified AGI is defined in section 530(c)(2).
Article II
No part of the custodial account funds may be invested in life-insurance
contracts, nor may the assets of the custodial account be commingled with
other property except in a common trust fund or a common investment fund
(within the meaning of section 530(b)(1)(D)).
Article III
1.Any balance to the credit of the designated beneficiary on the date on
which he or she attains age 30 shall be distributed to him or her within 30
days of such date.
2. Any balance to the credit of the designated beneficiary shall be distributed
within 30 days of his or her death unless the designated death beneficiary
is a family member of the designated beneficiary and is under the age of
30 on the date of death. In such case, that family member shall become the
designated beneficiary as of the date of death.
Article IV
The depositor shall have the power to direct the custodian regarding the
investment of the above-listed amount assigned to the custodial account
(including earnings thereon) in the investment choices offered by the custodian. The responsible individual, however, shall have the power to redirect the
custodian regarding the investment of such amounts, as well as the power to
direct the custodian regarding the investment of all additional contributions
(including earnings thereon) to the custodial account. In the event that the
responsible individual does not direct the custodian regarding the investment
of additional contributions (including earnings thereon), the initial investment direction of the depositor also will govern all additional contributions
made to the custodial account until such time as the responsible individual
otherwise directs the custodian. Unless otherwise provided in this agreement,
the responsible individual also shall have the power to direct the custodian
regarding the administration, management and distribution of the account.
Article V
The “responsible individual” named by the depositor shall be a parent or
guardian of the designated beneficiary. The custodial account shall have only
one responsible individual at any time. If the responsible individual becomes
incapacitated or dies while the designated beneficiary is a minor under state
law, the successor responsible individual shall be the person named to succeed
in that capacity by the preceding responsible individual in a witnessed writing
or, if no successor is so named, the successor responsible individual shall
be the designated beneficiary’s other parent or successor guardian. Unless
otherwise directed by checking the option below, at the time that the designated beneficiary attains the age of majority under state law, the designated
beneficiary becomes the responsible individual. If a family member under the
age of majority under state law becomes the designated beneficiary by reason
of being a named death beneficiary, the responsible individual shall be such
designated beneficiary’s parent or guardian.
Notwithstanding the previous paragraph, the responsible individual shall
continue to serve as the responsible individual for the custodial account
after the designated beneficiary attains the age of majority under state law
and until such time as all assets have been distributed from the custodial
account and the custodial account terminates. If the responsible individual
becomes incapacitated or dies after the designated beneficiary reaches the
age of majority under state law, the responsible individual shall be the designated beneficiary.
Article VI
The responsible individual may change the beneficiary designated under
this agreement to another member of the designated beneficiary’s family
described in section 529(e)(2) in accordance with the custodian’s procedures.
Article VII
1. T he depositor agrees to provide the custodian with all information necessary to prepare any reports required by section 530(h).
2. The custodian agrees to submit to the Internal Revenue Service (IRS) and
responsible individual the reports prescribed by the IRS.
Article VIII
Notwithstanding any other articles, which may be added or incorporated, the
provisions of Articles I through III will be controlling. Any additional articles
inconsistent with section 530 and the related regulations will
be invalid.
Article IX
This agreement will be amended as necessary to comply with the provisions
of the Code and the related regulations. Other amendments may be made
with the consent of the depositor and the custodian whose signatures
appear below.
Article X
Article X may be used for any additional provisions. If no other provisions
will be added, draw a line through this space. If provisions are added, they
must comply with applicable requirements of state law and the Internal
Revenue Code.
Article XI
1. Investments. Subject to Article IV, the responsible individual has exclusive
responsibility for and control over the investment of the custodial account,
including additional contributions thereto, provided that the account
may be invested only in shares of investment companies for which
AllianceBernstein L.P. acts as investment advisor. Investments are to be
directed in a manner acceptable to AllianceBernstein Investor Services, Inc.
(“Services”) either by the depositor or the responsible individual, as applicable. In the absence of applicable investment instructions, the responsible
individual hereby instructs that the account, or portion thereof for which
there are no such instructions, be (i) held uninvested or (ii) returned to the
depositor or responsible individual, as applicable. The Custodian reserves
the right to refuse to accept any contribution to the account in a form
other than cash. If an investment company held in the custodial account
is liquidated as provided by law and the responsible individual fails to give
instructions to Services regarding an alternative investment prior to such
liquidation, the responsible individual hereby instructs that the liquidation
proceeds be invested in shares of the AllianceBernstein Exchange Reserves
(a money-market fund), or any successor thereto. This Agreement is
subject to the provisions of the prospectuses of each investment held in
the custodial account to the extent applicable including, but not limited
to, provisions that permit any fund to close an account that has a balance
below the level specified in such prospectus (a “small balance fund
account”). If a fund closes a small balance fund account, the Custodian
may distribute the proceeds from the liquidation of such account to the
responsible individual.
2. Investment Advisors. Services may permit the responsible individual to
delegate investment responsibility for assets of the custodial account to a
third person. Services and the custodian shall follow the directions of such
a person only if Services receives written notice in a form satisfactory to it
of the delegation specifically setting forth such person’s authority. Services
may withdraw its permission for the appointment of any such person at
any time for any reason.
3.
Materials, Voting. The Custodian or Services shall forward to the
responsible individual all papers it receives relating to any investment
in the custodial account. The Custodian shall vote any investment in
accordance with the written instructions of the responsible individual
or a person duly appointed by the responsible individual. Absent such
instructions, the Custodian, Services or one of its affiliates shall vote any
shares of an investment company for which AllianceBernstein L.P. acts as
investment advisor (for, against or abstain) in the same proportion as all
shares of that investment company for which timely voting instructions
have been received.
4.
Distributions. The custodian shall only make distributions from the custodial account on the written directions of the responsible individual, and
only in such form, manner and amounts as are specified in such directions,
provided they are acceptable in form to Services. Neither the custodian
nor Services shall be responsible for the purpose or propriety of any
distribution from the custodial account. The custodian shall have no right,
except if properly directed, to liquidate assets in the custodial account to
make any distribution.
Beneficiary. A change in a beneficiary designation in accordance with
5.
Article VI shall be by written notice to Services in a form satisfactory to it.
Fees and Expenses. The custodian has the right to charge an annual
6.
fee and other designated fees (e.g., for transfers or distributions) for its
services and to be reimbursed for its expenses. All expenses incurred by
the custodian or Services in the performance of their duties hereunder,
including fees for legal services rendered to them, and the custodian’s
compensation not paid directly by the depositor, responsible individual
or a beneficiary, may, in the discretion of the custodian or Services, be
charged against and paid from the custodial account. The compensation
of any person the responsible individual appoints in accordance with
Section 2 of this Article and any other direct investment-related expenses
of the custodial account shall, if the responsible individual so directs by
written notice to the custodian in form satisfactory to the custodian, or
pursuant to a written agreement between Services and such appointee at
the written direction of the appointee, be charged against and paid from
the assets of the custodial account. Notwithstanding any provision of this
Agreement to the contrary, the custodian may liquidate sufficient permissible investments from the custodial account to pay any such expenses,
including compensation.
Removal of Custodian. Services may remove the custodian effective after
7.
at least 30 days’ prior written notice to the custodian, which shall designate a successor trustee or custodian. Upon receipt by the custodian and
Services of written acceptance of such appointment by the successor, the
removal of the custodian shall be effective, and the custodian shall, within
30 days of the effective date of the successor’s appointment, transfer and
deliver to the successor all assets of the custodial account and all records
pertaining thereto, provided that the custodian may reserve such assets as
it may deem advisable for the payment of its compensation and expenses
and for the payment of all liabilities that are a charge on or against the
custodial account or the custodian. Any balance of such reserve remaining
after the payment of all such items shall be paid over to the successor.
Resignation of Custodian. The custodian may resign at any time effective
8.
after at least 30 days’ prior written notice to the depositor and Services.
After receiving such notice, Services may appoint a successor trustee
or custodian. Upon receipt by the custodian of the successor’s written
acceptance of its appointment, the custodian shall act in the manner
provided for in Section 7 of this Article as regards the transfer of assets
to the successor and may reserve assets as permitted therein. In the event
before the custodian’s resignation becomes effective, either the depositor,
or the depositor’s beneficiary if the depositor is deceased, has not directed
the transfer of the custodial account to another custodian or to a trustee,
or Services does not appoint a successor under this Agreement that has
accepted its appointment, the custodian may terminate the custodial
account by distributing all assets of the account in cash or in kind to the
depositor or beneficiary, as applicable, subject to the custodian’s right
to reserve funds as referred to in Section 7 of this Article. Neither the
custodian nor Services shall be liable for any tax that results from any
distribution pursuant to this Section 8.
Transfers. The custodian, upon written direction of the responsible indi9.
vidual and after submission to the custodian or Services of such documents
as either of them may require, shall, subject to the custodian’s right to
reserve assets as referred to in Section 7 of this Article, transfer the assets
in the custodial account to the trustee or custodian of a successor Coverdell
Education Savings Account described in section 530 of the Code for the
benefit of the designated beneficiary or a member of his or her family.
10.Successors. This Agreement shall apply to any successor custodian as if
the successor were the initial custodian. The custodian and Services shall
not be liable for any actions or failures to act on the part of any successor
custodian or trustee. If the custodian is merged with another organization, or if the business of the custodian of which its services under this
Agreement is a part is acquired by another organization, that other organization shall automatically be the custodian if such organization satisfies
the applicable requirements of the Code.
11.A mendments. Notwithstanding any provision of this Agreement to the
contrary, the depositor and responsible individual delegate to Services
authority to amend this Agreement (including retroactive amendments) by
written notice to the responsible individual, provided that no amendment
shall cause or permit any part of the custodial account to be diverted
to purposes other than for the exclusive benefit of the designated
beneficiary, and no amendment shall be made that would disqualify this
Agreement from complying with any applicable provision of the Code.
12.Reliance and Responsibilities. The custodian and Services may conclusively
rely upon as proper and accurate, and are to have no liability in acting
upon, or omitting to take any action based upon, any direction, election,
instruction, request or information concerning the custodial account
that the custodian or Services, as applicable, believes to be genuine and
from the depositor, responsible individual, any individual contributing to
the custodial account, parent or guardian or another authorized person.
Before taking or omitting to take any such action, the custodian or
Services may request such proof of authority or other documentation as it
deems necessary or appropriate. Neither the custodian nor Services shall
be responsible for any losses, taxes, penalties, costs, expenses or other
liabilities of the depositor, responsible individual, any individual contributing to the custodial account, parent or guardian, or any other person
that result from any action or failure to act of such persons. The depositor,
the responsible individual and the responsible individual’s successors and
assigns, and the designated beneficiary, as applicable, shall reimburse the
custodian and Services for any such amount the depositor or Services may
incur in connection with any such action or failure and shall indemnify the
custodian and Services, and each of their affiliates, successors and assigns,
against and hold them harmless from, all claims against, and liabilities of,
the custodian or Services with respect to the custodial account (including
all attorneys’ fees and other expenses incurred in defending against any
such claims or liabilities) except those arising from the custodian’s or
Service’s own bad faith, gross negligence or willful misconduct. Neither
the custodian nor Services has any duty to determine whether contributions or distributions comply with this Agreement or the Internal Revenue
Code of 1986 as amended, to take any action other than as specified in
this Agreement or such Code, or to defend or engage in any suit with
respect to this Agreement or the custodial account.
13.Restrictions. No interest in the custodial account shall be sold, transferred,
pledged or subject to levy of any kind.
14.Agents. Either the custodian or Services may hire agents to perform
duties hereunder.
15.Notices, Addresses. Any notice to be given to the custodian or Services
shall be considered given if received by the custodian or Services at
AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX
78278 or such other address as the custodian or Services, as applicable,
shall provide to the depositor, or the depositor’s beneficiary, as applicable.
Any notice to be given to the depositor or a beneficiary shall be considered given when mailed to the depositor’s or beneficiary’s last address
provided to the custodian or Services.
16.A pplicable Law. This agreement is governed by the applicable provisions
of the Code and the laws of the State of North Dakota. If any part of this
agreement is held to be illegal or invalid, the rest of the agreement shall
not be affected. Any failure by anyone to enforce any provision of this
agreement shall not waive that provision.
A Message from Ascensus Trust Company, the Custodian of Your Account
We may collect nonpublic personal information about our
customers from the following sources:
n
n
Information we receive from you on applications or other
forms, such as name, address, age, Social Security number
and name of beneficiary; and
Information about your transactions with us, our affiliates,
and others, such as the purchase and sale of securities and
account balances.
Privacy Notice
AllianceBernstein and its affiliates (collectively “AllianceBernstein”)
understand the importance of maintaining the confidentiality of their
clients’ nonpublic personal information. Nonpublic personal information is personally identifiable financial information about our clients
who are natural persons. To provide financial products and services
to our clients, we may collect information about clients from a variety
of sources, including: (1) account documentation, including applications or other forms, which may include information such as a client’s
name, address, phone number, social security number, assets, income
and other household information, (2) client transactions with us and
others, such as account balances and transactions history, and (3)
information from visitors to our websites provided through online
forms, site visitorship data and online information-collecting devices
known as “cookies.”
It is our policy not to disclose nonpublic personal information about
our clients, or former clients (collectively “clients”), except to our
affiliates, or to others as permitted or required by law. From time to
time, we may disclose nonpublic personal information that we collect
about our clients to non-affiliated third parties, including those that
perform transaction processing or servicing functions, those that
provide marketing services for us or on our behalf pursuant to a joint
marketing agreement or those that provide professional services to us
under a professional services agreement, all of which require the third
We do not disclose nonpublic personal information about
our present or former customers to third parties except as
permitted by law.
We restrict access to nonpublic personal information about our
customers to employees and service providers involved in administering and servicing accounts. We maintain physical, electronic
and procedural safeguards that comply with federal standards to
guard the nonpublic personal information of our customers.
party provider to adhere to our privacy policy. We have policies and
procedures to safeguard nonpublic personal information about our
clients that include restricting access to nonpublic personal information and maintaining physical, electronic and procedural safeguards
which comply with applicable standards.
It is also our policy to prohibit the sharing of our clients’ personal information among our affiliated group of investment, brokerage, service
and insurance companies for the purpose of marketing their products
or services to clients, except as permitted by law. This information
includes, but is not limited to, a client’s income and account history.
We have policies and procedures to ensure that certain conditions are
met before an AllianceBernstein affiliated company may use information
obtained from another affiliate to solicit clients for marketing purposes.
A Word About Risk
While the Funds invest principally in equity or fixed-income securities,
in order to achieve their investment objectives, the Funds may at times
use certain types of investment derivatives, such as options, futures,
forwards and swaps. These involve risks different from, and, in certain
cases, greater than the risks presented by more traditional investments. As each Fund pursues unique investment strategies, the risks
associated with investments in each Fund differ. These risks are fully
discussed in the prospectuses.
Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before
investing. For copies of our prospectus, or summary prospectus, which contains this and other information, visit us
online at www.abglobal.com or contact your AllianceBernstein Investments representative. Please read the prospectus
and/or summary prospectus carefully before investing.
AllianceBernstein Investments, Inc. is an affiliate of AllianceBernstein L.P. and is a member of FINRA.
The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.
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