Account Types and Share Classes

Account Types

Regular Accounts
Individual or Joint Individual accounts have one owner while a joint account has more than one owner. Joint account owners can simplify transactions by authorizing just one of the owners to make transactions in writing or by telephone. Otherwise, all joint owners must sign.

UGMA or UTMA The Uniform Gifts to Minors Act and Uniform Transfer to Minors Act allow you to invest on a minor's behalf while serving as the account custodian. The minor's Social Security number is used for tax purposes.

Trusts An account in the name of an established trust. You must have the name of the trust, each trustees' name, and the date of the trust agreement to open a trust account.

Other Account Types
Transfer on Death This account allows you to name a beneficiary so that upon the death of the account owner(s), ownership passes directly to the beneficiary.

Power of Attorney Select this account type to include the name of the Power of Attorney (POA), in the registration and authorize the POA and account owner to act on the account.

Executor/Estate Select this account type to establish the account of an individual appointed by will or by the court to administer a descendant's estate.

Guardian or Conservator A Guardian or Conservator is a court-appointed fiduciary that has care of the person or property of another. The Guardian or Conservator controls the investment and ownership remains with the person who is incapable of carrying out his/her financial affairs.

Retirement Accounts for Individuals
IRA Individual Retirement Accounts (IRAs) allow eligible individuals to shield their investment income and capital gains from current income tax. IRAs let you plan now for a secure retirement and are a great way to invest over time because your funds grow tax-deferred.

Roth IRA Unlike a traditional IRA, contributions are not tax deductible. Instead, Roth IRAs allow eligible individuals to grow assets potentially tax free, so that when you take distributions, you may have to pay no federal income tax on them.

Coverdell Education Savings Account Unlike other IRAs, the Coverdell Education Savings Account is not a retirement account at all. Instead, it is an account you establish specifically for expenses — and it comes with very attractive advantages of tax deferred growth and tax free withdrawals for eligible individuals or entities. Contributions to a Coverdell Education Savings Account are not tax deductible. They are made with after-tax dollars for a child, but any growth of the account is tax deferred. And when the money is withdrawn and used for tuition, room, board, books, or other college supplies, it is tax-free.

Retirement Accounts for Small Business Owners
SEP-IRA Simplified Employee Pension (SEP) is one of the best ways a self-employed individual or small business can provide retirement benefits. A SEP is actually a type of retirement plan in which you, the employer, make contributions to an Individual Retirement Account (IRA) for yourself and your employees. SEP-IRA contributions made to the accounts of eligible employees, including yourself, are deductible as legitimate business expenses for federal tax purposes (within limits established by the Internal Revenue Service code). Any earnings produced in a SEP-IRA are tax-deferred. You and your employees pay no federal taxes on these earnings until you begin withdrawing money from your account.

Move your Investments to Federated
Transfers To transfer funds from an IRA with another financial institution to a new Federated account, please contact Contact Us.

Rollovers Rollovers To request a Direct Rollover from your employer's qualified retirement plan or 403(b) plan to an IRA, please Contact Us.

Share Classes
Class A Shares  — Typically require payment of a sales charge at the time of purchase (front end).

Class B Shares  — Typically have deferred sales charges.  You pay the sales charge when you sell the fund and the amount of the sales charge declines each year.

Class C Shares  — Typically don't have a front end sales charge or a deferred sales charge.  Instead you pay  a high annual expense with Class C shares.  There can be a contingent deferred sales load if the shares are sold within a short time of the purchase.  Effective February 1, 2007, Federated C shares have a 1% contingent deferred sales charge for one year.

Class F Shares  — The customer pays a 1% load and Federated advances 1% at the same time of the sale, for a total broker payout of 2%.  The customer is subject to a 1% redemption fee for four years.

Class R Shares  — Please note: Class R Shares of the Federated Kaufmann Fund — are only offered for sale to and may be purchased by former shareholders of the Kaufmann Fund and their immediate family members; and through the financial intermediary relationships that existed for the Kaufmann Fund. The Kaufmann Fund is the Fund's predecessor.