Investment Professionals - Reference Guide

Reference Guide
The information contained in this Reference Guide is intended to provide you with quick and convenient access to the answers to some of the most frequently asked questions about the EdVest program. For more detailed explanations please read the Program Description and Participation Agreement or call one of our representatives at 1-888-338-3789.

Select from the following:

Setting Up the Account
Residency Requirements	None.
Social Security Numbers	Both the account owner and the beneficiary must have valid U.S. Social Security Numbers.
Investment Options	On the original application, the account owner must choose their investment option. Federal law generally allows them to redirect existing investments once per calendar year or any time if there is a change in the designated beneficiary. Note: For calendar year 2009, an account owner may change investment direction twice without a change in designated beneficiary.
Annual Fees	EdVest has a $20 annual maintenance fee which will be waived if: the Account Owner or Beneficiary is a Wisconsin resident, the account balance is greater than $25,000, or the account has an Automatic Investment Plan (AIP) that has been active for the 12 previous months or since account opening.
Successor Account Owners	The account owner may name a successor account owner to assume control of the account in the event of the original account owner's death. This must be designated on the original application or submitted to Wells Fargo in writing.
Changing Beneficiary	The account owner may change the designated beneficiary at any time without paying the additional 10% federal income tax, provided that the new beneficiary is a member of the family of the current beneficiary.

Contributions
Minimum	$250 initial deposit required Waived if setting up an AIP or payroll direct deposit (PDD) of at least $15 per month
Maximum	$330,000 Contributions are permitted if the aggregate balance (market value) of all EdVest accounts for a single beneficiary does not exceed the limit.
Additional contributions	Subsequent contributions must be at least $15.
Methods of contributing	Check, AIP, PDD, EFT, or federal wire.
Rollover contributions (from another state's 529 plan)	Rollovers are permitted without an additional 10% federal tax if the money is being transferred into the account of a new designated beneficiary who is a member of the family of the beneficiary of the original account. Proper documentation will be required. A rollover can also be made once every 12 months for the same beneficiary.
Education Savings Accounts (formerly known as Education IRAs)	Contributions can be made to both accounts without penalty.
EdVest State Tax Deduction	Contributors may deduct up to $3,000 in contributions per dependent, grandchild, great-grandchild, niece, or nephew from their WI state taxable income every year.

Investment Options
Investment Options	At the time of enrollment, the account owner may choose between the Fixed Allocation and Enrollment-Based Options. This option may be changed up to the annual investment change limit or any time if there is a change in the designated beneficiary.
Underlying mutual funds	The portfolios include underlying investments managed by Wells Fargo Funds Management, LLC, Legg Mason Capital Management, Inc., Robert W. Baird & Co. Incorporated, and The Vanguard Group.
Fixed Allocation Options	The account owner may choose among ten fixed allocation portfolios that are available through a financial advisor: Legg Mason Aggressive Portfolio Vanguard Stock Index Portfolio Wells Fargo Aggressive Portfolio Wells Fargo Moderate Portfolio Vanguard Balanced Portfolio Wells Fargo Balanced Portfolio Wells Fargo Conservative Portfolio Wells Fargo Bond Portfolio Baird Bond Portfolio Wells Fargo Money Market Portfolio
Enrollment-Based Options	The account owner may choose among three enrollment-based tracks: Aggressive Growth, Moderate Growth, or Conservative Growth. Contributions to the Enrollment-Based options are invested in a portfolio based upon the number of years until the beneficiary will be enrolled in higher education, as reported on the account application. Portfolios for beneficiaries with more years to enrollment will be invested in portfolios with more aggressive/equity-based investments. As time passes, the investments automatically move to progressively more conservative portfolios.
Portfolio Allocations	See Investment Options
Investment Direction	Generally, account owners are allowed to change their investment option once per calendar year or any time if there is a change in the designated beneficiary. However, for calendar year 2009, an account owner may change investment direction twice without a change in designated beneficiary. The ongoing money management will be the responsibility of the Wisconsin College Savings Program Board, the Wisconsin State Treasurer, and Wells Fargo. For tuition unit investments, the ongoing money management will be the responsibility of the Wisconsin College Savings Program Board, the Wisconsin State Treasurer, and the State of Wisconsin Investment Board.

Withdrawals
Qualified expenses	Qualified higher education expenses currently include tuition, fees, and the cost of books, supplies and equipment required for the enrollment or attendance of a beneficiary at an eligible institution of higher education. Qualified higher education expenses also include expenses for special needs services in the case of a special needs beneficiary, who incurs such expenses in connection with enrollment or attendance at an eligible educational institution. Qualified expenses also include the purchase of computer technology, equipment, or Internet access and related services paid for or incurred in 2009 or 2010, if such technology, equipment, or services are to be used by the beneficiary and their family during any of the years the beneficiary is enrolled at an Eligible Educational Institution.
Room and Board Limitations	Beneficiaries must be enrolled at least half-time at a post-secondary institution for room and board expenses to be considered an eligible education expense. If the beneficiary lives in housing operated by the educational institution, the cost cannot exceed what is normally assessed for most of its residents. The limit for room and board is based on a stated "cost of attendance" provided by each institution. This allows for more realistic distributions in areas where the cost of living is higher.
Eligible institutions	Account assets may be used at any eligible post-secondary school in the country or abroad as long as the institution is eligible to participate in the U.S. Department of Education student financial aid programs. See www.fafsa.ed.gov for a complete listing.
How to make a withdrawal	Account withdrawals may be initiated by filling out a Distribution Form. Certain withdrawals may be initiated over the phone or online. Investors may authorize telephone and Internet withdrawals on a new account application or with the Account Change Request Form.
For Scholarships	If the designated beneficiary receives a qualified scholarship, the earnings portion of the withdrawal will not be subject to the additional 10% federal tax. The account owner should keep proof of receipt of the scholarship for their tax reporting purposes.
For Death or Disability of Beneficiary	In the event that the beneficiary dies or becomes disabled, the account owner may request, in writing, the return of the account balance. Proper documentation must be provided. The earnings portion of the withdrawal will be taxed, but will not be subject to the additional 10% federal income tax.

Taxation
Tax deferred growth	Wisconsin does not charge state income tax on EdVest account earnings. Account earnings also grow federal tax deferred.
Tax-free qualified withdrawals	There is no Wisconsin State income tax on qualified withdrawals from EdVest. Qualified withdrawals are also federal tax free.
Non-qualified withdrawals	The earnings portion of withdrawals for non-qualified expenses is subject to federal and state taxes. In addition, non-qualified withdrawals are subject to a 10% additional federal income tax on the earnings portion of the withdrawal.
Wisconsin State Tax Deduction	Contributors may deduct up to $3,000 in contributions per dependent, from their Wisconsin state taxable income every year. Grandparents, great-grandparents, aunts, and uncles can claim this deduction as well.
Gift tax benefits	An individual may contribute up to $65,000 in a single year without being subject to the federal gift tax for those contributions. The gift can be treated as a series of five equal annual gifts of $13,000 per year on the next federal tax return after the gift is made. This requires that no further gifts be made to the same individual over the five-year period. The five-year averaging election is made on the Federal Gift Tax Return, Form 709.
Estate tax benefits	Contributions to the account are considered completed gifts for federal gift and estate tax purposes and are considered removed from the contributor's estate. However, if the account owner elects to take the annual gift tax exclusion over five years and dies before the five-year period elapses, then the contribution amounts allocable to the calendar years after the date of death are included in the account owner's estate.

Advisor Compensation (for accounts opened through a licensed financial advisor)
The following table shows the upfront commission, annual trail payments and contingent deferred sales charges that apply if a client purchases shares of the EdVest program through a financial advisor. For Class C shares, the upfront commission includes an advance of the first year's annual trail payment. The contingent deferred sales charge is charged on the purchase price of the shares and is paid to Wells Fargo Funds Distributor, LLC (WFFD) and used to offset the upfront commission that WFFD pays to the selling agent. The annual trail payment is paid to WFFD, and WFFD pays a portion to the selling agent, as described in the table. WFFD retains that portion of the annual trail payment that is not paid to a selling agent.

Advisor Class Shares Up-Front Sales Charge Dealer Concession Contingent Deferred Sales Charge Annual Trail Payment Charged to Investor Portion of Annual Trail Payment Paid to Selling Agent

Class A
5.75% for equities
4.50% for bonds and coservative
2.00% for Money Market 5.00% for equities
4.00% for bonds and conservative
1.75% for Money Market
None

0.25%

0.25%

Breakpoint Schedule

Class B³
None N/A
6 Year¹

0.95%

0.25%

CDSC Phase-Out Schedule

Class C
None 1.00%
1 Year²

1.00%

1.00%

Advisor Class Shares	Up-Front Sales Charge	Dealer Concession	Contingent Deferred Sales Charge	Annual Trail Payment Charged to Investor	Portion of Annual Trail Payment Paid to Selling Agent
Class A	5.75% for equities 4.50% for bonds and coservative 2.00% for Money Market	5.00% for equities 4.00% for bonds and conservative 1.75% for Money Market	None	0.25%	0.25%
Breakpoint Schedule
Class B³	None	N/A	6 Year¹	0.95%	0.25%
CDSC Phase-Out Schedule
Class C	None	1.00%	1 Year²	1.00%	1.00%

An investment in the Money Market Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Money Market Portfolio seeks to preserve the value of your investment at $10.00 per share, it is possible to lose money by investing in it.

EdVest 529 portfolio investments involve risks, including the possible loss of principal. Consult a program description for additional information on risks.