With Scholar s Edge, New Mexico s 529 College Savings Plan, You Can Get an Edge When You Save for College.

Transcription

1

2

3 With Scholar s Edge, New Mexico s 529 College Savings Plan, You Can Get an Edge When You Save for College. Edge 1 A 529 Plan that s almost as smart as your child. Edge 2 Potentially save more and borrow less. Edge 3 Potential tax benefits that make saving easier. Edge 4 Choose your own investments.

4 Edge 1 A 529 Plan that s almost as smart as your child.

5 Why should I open a Scholar s Edge 529 College Savings Plan? For the vast majority of families, paying for a child s college education is rarely an all or nothing proposition. Because only a select few students receive full scholarships, most families typically take a three-pronged approach: Savings Financial Aid Student Loans By incorporating a tax-advantaged 529 plan such as Scholar s Edge into your family s overall financial plan, you can take a smart, pragmatic approach toward this important goal. Money you invest in a 529 college savings plan has the opportunity to grow tax free and may also benefit from compounded growth. In other words, your earnings may generate additional earnings and help your account grow faster. And remember, you don t have to save the entire amount, but the more you are able to save in advance, the less you or your child will have to borrow through student loans later. Any U.S. resident who is at least 18 years old can open an account. Once the account is open, anyone can contribute, including grandparents. The money invested in a 529 college savings plan can be used to pay for qualified higher education expenses. With Scholar s Edge you choose: How much you contribute Your investment approach When and how your savings are used

6 Edge 2 A 529 Plan that potentially allows you to save more and borrow less.

7 You have the control As the account owner, the plan is in your name, so you and you alone retain control. If your beneficiary opts out of college, you can change it to another child without penalty. 1 Starting early and saving often gives you an edge toward funding a college education. This chart demonstrates how saving more may lower your total out-of-pocket costs for a 4-year college education. Making smart choices today can have a positive impact on the real cost of college tomorrow. Saving even a modest amount $120K $115,752 $107,678 $100K total estimated cost of a 4-year college education each month in a 529 college savings plan can be an effective strategy to reduce or eliminate your reliance on student loans, which can substantially add to your out-of-pocket costs. Plus, every dollar saved may amount to more than a dollar earned because your investment in a 529 college savings plan has the opportunity to benefit from possible compounded earnings that may also grow tax free over time. Total out-of-pocket cost $90K $60K $30K $5,400 $87,940 $20,520 $60,128 $41,040 How much to contribute? You can create an account with just $25 if you set up a monthly automatic contribution plan, which transfers a set amount per month to your account. 2 Otherwise, the minimum to open an account is $250, or $1,000 should you and your financial advisor opt for Portfolio Allocator. The more you save, the more likely you are to avoid unnecessary debt. 3 $0 Total out-of-pocket cost $0 $25 $95 $190 Monthly amount contributed to a tax-advantaged account Monthly amount contributed to a tax-advantaged account All four scenarios show the out-of-pocket cost based on an estimated $100,000 4-year college education at a public university. These scenarios also assume the receipt of approximately $25,000 in financial aid, which will vary depending upon how much is accumulated in a tax-advantaged account. The loan portion assumed in each column is calculated to include a fixed interest rate of 6.25% to be repaid over 180 months as defined by Sallie Mae (that s like paying off a 15-year mortgage) following graduation with 54 monthly payments of $25 made during college. All savings in the tax-advantaged account depicted in this chart assume 5% monthly compounded growth from the beneficiary s birth until age 18. Source: OppenheimerFunds The hypothetical examples are for illustrative purposes only and do not predict or depict the performance of any specific investment. Actual results may vary. 1. Depending on who the new beneficiary is, there may be gift or generation-skipping tax consequences. Your investment professional can provide more information. See the Plan description and Participation Agreement for more information. Consult your tax advisor about how 529 tax treatment would apply to your situation. 2. Systematic investment plans do not assure a profit nor guarantee against loss in declining markets. Before investing, investors should evaluate their long-term financial ability to participate in such a plan. 3. You can contribute a maximum of $500,000 per beneficiary. All assets, including earnings, under all 529 plan accounts established in any New Mexico-sponsored 529 plan for the benefit of a particular beneficiary must be aggregated when applying this limit. New contributions will not be allowed once this limit is reached. Earnings, however, will continue to accrue.

8 Edge 3 A 529 Plan with potential tax benefits that make saving easier.

9 Another way to save. New Mexico residents can take advantage of state tax deductions when investing in Scholar s Edge. 4 Residents of several other states may also be eligible for a state tax deduction from their own state when investing in Scholar s Edge. 5 Regardless of where your child lives or plans to go to school, you can take advantage of the many benefits of Scholar s Edge. Tax-free gifting. Saving for college with Scholar s Edge may bring a wealth of tax benefits. Investments may grow faster than those in comparable taxable accounts. Withdrawals are free from federal taxes, and from state taxes where applicable, as long as the money is used for qualified higher education expenses. 7 Benefits of tax-free growth Scholar s Edge has gift and estate planning advantages. Parents and grandparents can contribute $15,000 per child in a single year ($30,000 per couple). You can also take advantage of five years worth of tax-free gifts at once. 6 Completed gifts are removed from your estate for tax purposes, so the money goes toward the child s education, not taxes. 6 Tax advantaged (tax-free) account Taxable savings account This hypothetical illustration assumes an initial investment of $10,000 and a 5% annual rate of return. The taxable account assumes a 28% federal and 5% state tax rate. You should consult with your tax advisor to determine if this applies in your state of residence. The illustration does not represent the performance of any specific account or investment and does not reflect any plan fees or sales charges that may apply. If such fees or sales charges were taken into account, returns would have been lower. 4. New Mexico residents who invest in Scholar s Edge can deduct their contributions from their taxable New Mexico income. When it s time to withdraw the funds, New Mexico residents won t owe state taxes as long as the assets are used for qualified higher education expenses. 5. Some states restrict favorable tax treatments to residents who invest in their state s own plan. Before investing through Scholar s Edge, find out if your home state offers any state tax or other benefits that are available only for investments in that state s 529 plan. States that offer tax parity include Arizona, Kansas, Minnesota, Missouri, Montana, and Pennsylvania. Source : August Account owners cannot make another tax-free gift to the same beneficiary for five years from the original contribution. If the account owner dies within five years of the funding date, a prorated portion of the contribution allocable to the remaining years in the five-year period, beginning with the year after the contributor s death, will be included in his or her estate for federal estate purposes. Consult your tax advisor for information about how 529 tax treatment would apply to your situation. 7. If money in a 529 account is used for non-qualified purposes, the earnings portion of the withdrawal will be subject to ordinary federal income tax, plus an additional 10% federal income tax and any applicable state income tax.

10 Edge 4 A 529 Plan that let s you choose your own investments. More options mean more flexibility. Scholar s Edge is a smart option for parents seeking to grow their child s college fund as it offers a suite of distinct investment approaches. With the Age Based, Custom Choice and Portfolio Allocator approaches, you can tailor your portfolio to suit your risk tolerance and growth requirements. Option 1: Age Based Portfolios This approach contains age based portfolios that allow you to closely align your college savings goals with your risk tolerance and return expectations. As your child grows older, the money in the account automatically shifts to increasingly conservative portfolios. 5% 4% 47% 44% 3% 4% 10% 44% 39% 3% 3% 20% 39% 34% 1% 2% 2% 29% 35% 29% 3% Portfolio 100 Portfolio 90 Portfolio 80 Portfolio 70 Ages 0-2 Ages 3-4 Ages 5-6 Ages 7-8 5% 5% 37% 1% 2% 30% 25% 5% 40% 1% 2% 19% 26% 7% 48% 14.5% 9% 21.5% 2% 56% 7% 10% 8% 17% 2% Portfolio 60 Portfolio 50 Portfolio 40 Portfolio 30 Ages 9-10 Ages Ages Ages % 63% 7% 8% 11% 1% 15% 3% 67% 8% 6% 1% Portfolio 20 Portfolio 10 Ages Ages 19+ U.S. Equity Low Volatility Global & International Equity Real Estate MLP Fixed Income Oppenheimer Institutional Government Money Market 9

11 Option 2: Custom Choice This approach allows you and your financial advisor to design an investment strategy that is more tailored to your needs and your risk tolerance. You can mix and match any combination of available portfolios with any of the Individual Fund Portfolios listed on the next page. 5% 4% 10% 16% 16% 7% 12% 5% 13% 6% 6% 3% 3% 1% 1% 2% 3% 4% 7% 11% 9% 13% 15% 15% 4% 4% 5% 3% 3% 3% 6% 5% 4% 2% 8% 14% 7% 10% Portfolio 100 Portfolio 90 Portfolio 80 Portfolio 70 Portfolio 60 13% 10% 4% 3% 1% 4% 5% 4.5% 7.5% 7% 5% 2% 2% 7% 8% 8% 7% 13% 11% 3.5% 2.5% 3% 4% 2% 3% 7.5% 6% 1% 2% 5% 4.5% 6% 9% 6% 7% 7% 9% 12% 3% 2% 5% 3% 5% 2.5% 3.5% 4.5% 5% 5% 5% 6% 1% 2% 7.5% 7% 10% 7% 1% 2% 8% 11% 5% 2% 3% 5% 4% 3% 4.5% 5% 5% 9% 5.5% 7% 11% 7% 10% 2% 4% 5% 1.5% 1% 1.5% 6% 6% 4% 5% 3% 2% 3.5% 1%.5% 7% 8% 1% 4% 7.5% 9% 7.5% 7% 12% 7% 2% 3% 4% 4% 2% 1% 3% 10% 8% 10% 10% 10% 5% 7% 7% 13%.5%.5% 1% 2% 1% 1% 4% 2% 1% 1.5%.5% 2% 15% 8% 1% 13% 6% 12% 13% 13% 4% Portfolio 50 Portfolio 40 Portfolio 30 Portfolio 20 Portfolio 10 5% 6% 5% 20% 15% 25% 10% 25% 15% 10% 15% 20% 5% 20% 4% 5% 95% Low Duration Fixed Income Portfolio Fixed Income Portfolio Capital Preservation Portfolio U.S. Equity Oppenheimer Value Fund T. Rowe Price Blue Chip Growth Fund Oppenheimer Main Street Fund Oppenheimer Main Street Mid Cap Fund Oppenheimer Main Street Small Cap Fund Low Volatility Oppenheimer Capital Income Fund Money Market Oppenheimer Institutional Government Money Market Portfolio 10 Global and International Equity Oppenheimer Developing Markets Fund Oppenheimer International Growth Fund Oppenheimer Global Fund Oppenheimer Global Value Fund Real Estate Oppenheimer Real Estate Fund MLP Oppenheimer SteelPath MLP Select 40 Fund Fixed Income American Century Diversified Bond Fund Oppenheimer Total Return Bond Fund Oppenheimer International Bond Fund Oppenheimer Limited-Term Bond Fund Oppenheimer Limited-Term Government Fund Oppenheimer Senior Floating Rate Fund MainStay MacKay High Yield Corporate Bond Fund 8 American Century Short Duration Inflation Protected Fund New York Life Insurance Company Funding Agreement 8. Prior to February 28, 2018, the Fund was named MainStay High Yield Corporate Bond Fund.

12 Individual Fund Portfolios You can choose from any of the Individual Fund Portfolio options listed below along with any of the Age Based and Custom Choice Portfolios and customize your investment allocation even further. 9 Choose from any of the Individual Fund Portfolio options below. U.S. Equity Portfolios Oppenheimer Discovery Portfolio Oppenheimer Dividend Opportunity Portfolio Oppenheimer Value Portfolio T. Rowe Price Blue Chip Growth Portfolio Oppenheimer Main Street Portfolio Oppenheimer Main Street Mid Cap Portfolio Oppenheimer Main Street Small Cap Portfolio Global and International Equity Portfolios Oppenheimer International Small-Mid Company Portfolio Oppenheimer Global Opportunities Portfolio Oppenheimer International Diversified Portfolio Oppenheimer International Growth Portfolio Oppenheimer Developing Markets Portfolio Oppenheimer Global Portfolio Oppenheimer Global Value Portfolio Multi Asset Portfolios Oppenheimer Capital Income Portfolio Oppenheimer Global Allocation Portfolio U.S. Fixed Income Portfolios Oppenheimer Total Return Bond Portfolio Oppenheimer Limited Term Government Portfolio Oppenheimer Senior Floating Rate Portfolio American Century Diversified Bond Portfolio MainStay MacKay High Yield Corporate Bond Portfolio 11 Oppenheimer Limited Term Bond Portfolio American Century Short Duration Inflation Protected Portfolio Global and International Fixed Income Portfolios Oppenheimer Global Strategic Income Portfolio Oppenheimer International Bond Portfolio Alternative Portfolios Oppenheimer Gold and Special Minerals Portfolio Oppenheimer Real Estate Portfolio Oppenheimer SteelPath MLP Select 40 Portfolio Money Market Portfolio Oppenheimer Institutional Government Money Market Portfolio Once you invest in a portfolio, your money will remain in that portfolio until you instruct the plan to move it to another portfolio or approach. None of these portfolios is designed to provide any particular total return over any period or investment time horizon. You should work with your financial advisor to determine which portfolios are appropriate to your situation. There is always the potential to lose money when you invest in securities. Each underlying investment has its own risks. For example, the prices of small-cap stocks are generally more volatile than large company stocks. There are special risks inherent to international investing, including currency, political, social and economic risks. Investments in growth stocks may be more volatile than other securities. With value investing, if the marketplace does not recognize that a security is undervalued, the expected price increase may not occur. Fixed income investing entails credit and interest rate risks. When interest rates rise, bond prices generally fall, and the underlying investment s or account s value can fall. Diversification does not guarantee a profit or protect against loss. Derivative instruments, investments whose values depend on the performance of an underlying security or asset, interest rate, index or currency, entail potentially higher volatility and risk of loss compared to traditional stock or bond investments. 10. Prior to September 28, 2016, the Portfolio s name was Oppenheimer Institutional Money Market Portfolio. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. 11. Prior to February 28, 2018, the Portfolio was named MainStay High Yield Corporate Bond Portfolio.

13 Option 3: Portfolio Allocator This approach allows you and your financial advisor to craft your own asset allocation by choosing any of the various Individual Fund Portfolios listed on the previous page that include options from OppenheimerFunds, MainStay and American Century. With so many attractive options, you ll be able to tailor your account specifically to suit your investment preferences. In addition to a wide selection of investment options, Portfolio Allocator automatically rebalances the account on a quarterly basis to conform to your original asset allocations. This is important because even though the underlying funds will fluctuate in value, your account won t stray from your chosen allocations, as determined by you and your advisor, for very long, if at all, unless you make changes to them. Portfolio Allocator Choose any of the various individual fund portfolios available. Portfolio allocator rebalances every quarter.

14 Choose to pay less for college, and start saving today. Contact your financial advisor to see how Scholar s Edge may fit into your overall financial plan. Visit ScholarsEdge529.com for more information. OppenheimerFunds OppenheimerFunds offers investment portfolios in every major asset class through a variety of vehicles including retirement and college saving plans. Our staff of over 2,000 employees includes more than 170 investment professionals, who are committed to serving the needs of the individual, institutional investors and financial advisors who entrust us as the stewards of their capital. The Right Way to Invest We are dedicated to serving the needs of our investors. While markets may change, we believe The Right Way to Invest for our clients remains constant. It is rooted in four simple, but Look to the Long Term We focus on delivering long-term results through active management and seeing opportunities where others may not. Invest with Experience Our portfolio managers are some of the industry s most tenured and successful, guiding portfolios through multiple market cycles. Take Intelligent Risks We recognize that investment rewards are rarely achieved without using risk in an intelligent way. Our deep understanding of risk dynamics helps us as we seek to manage portfolios in line with clients expectations. important principles. Make Global Connections We understand the interconnect edness of worldwide markets and have a proven history of finding rewarding opportunities from across the globe for investors.

15 IMPORTANT NOTICE TO NEW MEXICO TAXPAYERS As a result of recent federal tax law changes, the definition of Qualified Higher Education Expenses under Section 529 of the Internal Revenue Code have been expanded to include tuition expenses for K-12 Schools. K-12 Schools are elementary or secondary public, private or religious schools. Effective January 1, this change in the federal tax law permits Account Owners to withdraw up to $10,000 for tuition expenses from a 529 college savings account for K-12 Schools free of federal taxes. This limitation applies on a per-student basis, rather than a per-account basis. Although an individual may be the designated beneficiary of multiple accounts, that individual may receive a maximum of $10,000 in distributions free of federal tax, regardless of whether the funds are distributed from multiple accounts. The recent federal tax law changes also permit transfers from a 529 account to an account in a Qualified ABLE Program made before January 1, 2026, without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. ABLE accounts are subject to an annual contribution limit (currently $15,000). Transfers from a 529 account that cause the ABLE account to exceed the $15,000 limit will be subject to federal tax. This provision applies to 529 to ABLE transfers made after December 22, Under current New Mexico tax law, contributions to the New Mexico 529 plans by a New Mexico individual taxpayer may be deducted for New Mexico individual income tax purposes. In certain circumstances, the amounts deducted may be recaptured in subsequent years. Despite the new federal law changes for tuition expenses for K-12 Schools, it is possible that such K-12 tuition expenses will not constitute Qualified Higher Education Expenses under the New Mexico tax code, thereby resulting in a recapture of any deduction related to amounts distributed for such K-12 tuition expenses. In addition, amounts previously deducted for New Mexico income tax purposes will be recaptured if they are distributed from a New Mexico 529 plan account to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualified Withdrawal for federal tax purposes). Account Owners who are New Mexico taxpayers should consult their own tax advisors before making withdrawals from a New Mexico 529 plan for K-12 tuition expenses or transferring funds from a New Mexico 529 Plan to a Qualified ABLE Program.

16 Choose to pay less for college, and start saving today. Contact your financial advisor to see how Scholar s Edge may fit into your overall financial plan. Visit ScholarsEdge529.com for more information. This material is provided for general and educational purposes only and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or tax advisor regarding your specific legal, investment or tax situation. Scholar s Edge is operated as a qualified tuition program offered by The Education Trust Board of New Mexico and is available to all U.S. residents. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager for Scholar s Edge, and OppenheimerFunds Distributor, Inc. is the distributor of Scholar s Edge. Some states offer favorable tax treatment to their residents only if they invest in the state s own plan. Investors should consider before investing whether their or their designated beneficiary s home state offers any state tax or other benefits that are only available for investments in such state s qualified tuition program, such as financial aid, scholarship funds, and protection from creditors. Any state-based benefit offered with respect to a particular 529 College Savings Plan should be one of the many appropriately weighted factors considered in making an investment decision. You should consult with your tax or other advisor to learn more about how state-based benefits (including any limitations) would apply to their specific circumstances. In addition, some states may offer an income tax deduction to any qualified tuition programs. These securities are neither FDIC insured nor guaranteed and may lose value. Before investing in a plan, investors should carefully consider the investment objectives, risks, charges and expenses associated with municipal fund securities. The Plan Description and Participation Agreement contain this and other information about Scholar s Edge and may be obtained by asking your financial advisor, visiting ScholarsEdge529.com or calling SAVE ( ). Investors should read these documents carefully before investing. Account owners do not invest in, and do not have ownership or other rights relating to, the underlying investments. The underlying investments of Scholar s Edge are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. Scholar s Edge is distributed by OppenheimerFunds Distributor, Inc., Member FINRA, SIPC. 225 Liberty Street, New York, NY Scholar s Edge and the Scholar s Edge logo are registered trademarks of The Education Trust Board of New Mexico used under license. SE April 27, 2018

17 SCHOLAR S EDGE Enrollment Application Instructions Print clearly in all CAPITAL LETTERS using blue or black ink. When requested, please color in circles completely. Complete this form to establish a Scholar s Edge account. n Please read the Plan Description and Participation Agreement prior to investing. You can obtain a copy at scholarsedge529.com If you have any questions, please call us at SAVE (7283) Monday through Friday from 6:00am to 6:00pm, Mountain Time. Please mail or fax the completed form and any required documents to the following address: Scholar s Edge P.O. Box Denver, CO Fax: Financial Advisor Information Financial advisor s name (first, middle initial, last) n Branch number Firm name n Dealer and Representative ID number(s) Street address Street address 2 City n State n Zip n Fax number Daytime phone number address BIN number 2 Account Type Important Information About Opening a New Account To help the government fight the funding of terrorism and money laundering activities, we are required by federal law to obtain, verify and record certain personal information that identifies each person prior to opening an account. This information includes the applicant s name and date of birth, street address, Social Security Number (SSN) or Tax Identification Number (TIN). If you are establishing an account using a Power of Attorney on behalf of an Account Owner, please call us at SAVE (7283) for instructions about how to properly establish the account. SE Page 1 of 12

18 2 Account Type (continued) Please fill out Section A if your chosen Account Type is Individual or UGMA/UTMA. A. Individual or UGMA/UTMA Custodian Individual UGMA/UTMA Please indicate the state that governs the UGMA or UTMA The Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA) are types of custodial accounts that are set up by an adult on behalf of a minor. All the money and assets (e.g. mutual funds, stocks, bonds, Certificates of Deposit, etc.) in these types of accounts are turned over to the beneficiary s control at the age of 18 to 21 (depending on the state in which the account was opened). Name (first, middle initial, last) of Account Owner or UGMA/UTMA Custodian n Social Security or Taxpayer ID Number of Account Owner/Custodian (Required) Date of Birth (mm/dd/yyyy) Male Female U.S. Citizen/Resident Alien (Nonresident aliens are not eligible to participate in the Plan.) Street address (No P.O. Boxes) City n State n Zip Daytime phone number address n Evening phone number Mailing address (if different from above) City n State n Zip Please fill out Section B if your Account Type is a Trust, 501(c)(3), Partnership or Corporation. B. Trusts, 501(c)(3), Partnerships or Corporations (Check one.) Trust (Please include copies of the title and signature pages of the Trust Document.) 501(c)(3) (Please include a copy of the ruling Determination Letter from the IRS.) Partnership (Please include a copy of the Partnership Agreement.) Corporation (Please include a copy of the Articles of Incorporation, certified by the Secretary of State or other government entity.) Country of Incorporation/ Organization Name of Trust, 501(c)(3), Partnership or Corporation n Date of Trust (if applicable) United States (Entity must be incorporated/organized in the U.S. to be eligible to participate in the Plan.) Social Security Number/U.S. Taxpayer ID Number n Daytime phone number n address Street address (No P.O. Boxes) City n State n Zip Mailing address (if different from above) City n State n Zip SE Page 2 of 12

19 2 Account Type (continued) Trustee/Partner/Officer Information Federal law requires that we obtain your name, street address, date of birth and Taxpayer Identification number prior to opening the account. This Trust, 501(c)(3), Partnership or Corporation entity account may have one or more authorized representatives. To list additional Trustees/ Partners/Officers, attach a separate sheet. Name of Trustee/Partner/Officer (first, middle initial, last) Street address of Trustee/Partner/Officer (No P.O. Boxes) n Social Security Number/U.S. Taxpayer ID Number (Required) n Date of Birth (mm/dd/yyyy) City n State n Zip Mailing address (if different from above) City n State n Zip Name of Trustee/Partner/Officer (first, middle initial, last) n Social Security Number/U.S. Taxpayer ID Number (Required) Street address of Trustee/Partner/Officer (No P.O. Boxes) n Date of Birth (mm/dd/yyyy) City n State n Zip Mailing address (if different from above) City n State n Zip 3 Designated Beneficiary Information All information in this section is REQUIRED. The Designated Beneficiary is the individual whose Qualified Higher Education Expenses will be paid from this Account. Designated Beneficiary s name (first, middle initial, last) Social Security or Taxpayer ID Number n Date of Birth (mm/dd/yyyy) n Relationship to Account Owner Male Female U.S. Citizen/Resident Alien (Nonresident aliens are not eligible to participate in the Plan.) Check here if the address is the same as the Account Owner. Street address (No P.O. Boxes) City n State n Zip SE Page 3 of 12

20 4 Successor Account Owner You may name a Successor Account Owner for this Account. The Successor Account Owner must be at least 18 years of age. In the event of your death or disability, ownership of all assets in the Account will be transferred to the Successor Account Owner. A Successor Account Owner will assume all rights with respect to the Account that the previous Account Owner had. Enforceability of a Successor Account Owner designation may vary by state. A transfer to a Successor Account Owner may have tax consequences. Consult your tax professional for more information. Successor Account Owner s name (first, middle initial, last) 5 Unit Class Please select only one Unit Class per account. If you do not choose a Unit Class, your investment will be made in Class A Units. If funding via payroll deduction Class A Units must be selected. Each Unit Class has a different fee and expense structure. Please refer to the Plan Description and Participation Agreement for complete details. If you wish to establish more than one Unit Class, you must open another account within the Plan. Class A Unit Class C Unit 6 Portfolio Selection Choose Your Portfolios Indicate as a percentage how you would like your Contributions to be deposited across the Age Based Portfolios, Custom Choice Portfolios and/or Individual Fund Portfolios. If you wish to open only a Portfolio Allocator account, proceed directly to Section IV. When opening an account with any combination of Age Based Portfolios, Custom Choice Portfolios and/or Individual Fund Portfolios your total initial allocation must add up to 100%. If you are also opening a Portfolio Allocator Account (Section IV), you will be assigned a separate account number. Your combination of Portfolios selected must also have a total initial allocation totalling 100%. I. Age Based Your investment Portfolio will automatically change over time based on your Designated Beneficiary s age. Age Based Portfolio Initial Allocation % State/Local Government or 501(c)(3) Organizations: If you choose an Age Based option, please indicate the specific Portfolio in which you would like your Contributions to be deposited. Please see the Plan Description and Participation Agreement for detailed information. Age Based Portfolio selected (501(c)(3) only): SE Page 4 of 12

21 6 Portfolio Selection (continued) II. Custom Choice Portfolios Your investment choice changes only on your instruction to the Program Manager. Custom Choice Portfolios Initial Allocation Portfolio 100 % Portfolio 90 % Portfolio 80 % Portfolio 70 % Portfolio 60 % Portfolio 50 % Portfolio 40 % Portfolio 30 % Portfolio 20 % Portfolio 10 % Low Duration Fixed Income Portfolio % Fixed Income Portfolio % Capital Preservation Portfolio % III. Individual Fund Portfolios Selecting any combination of the Individual Fund Portfolios allows you and your financial advisor to craft your own asset allocation to suit your investment preferences. As with any customized investment program, it is important that your financial advisor understands your longterm objectives and risk tolerance before constructing an asset allocation. Your investment choice changes only on your instruction to the Program Manager. Individual Fund Portfolios U.S. Equity Portfolios Oppenheimer Discovery Portfolio % Oppenheimer Dividend Opportunity Portfolio % Oppenheimer Value Portfolio % T. Rowe Price Blue Chip Growth Portfolio % Oppenheimer Main Street Portfolio % Oppenheimer Main Street Mid Cap Portfolio % Oppenheimer Main Street Small Cap Portfolio % Global and International Equity Portfolios Oppenheimer International Small-Mid Company Portfolio % Oppenheimer Global Opportunities Portfolio % Oppenheimer International Diversified Portfolio % Oppenheimer International Growth Portfolio % Oppenheimer Developing Markets Portfolio % Oppenheimer Global Portfolio % Oppenheimer Global Value Portfolio % U.S. Fixed Income Portfolios Oppenheimer Total Return Bond Portfolio % Oppenheimer Limited Term Government Portfolio % Oppenheimer Senior Floating Rate Portfolio % American Century Diversified Bond Portfolio % MainStay MacKay High Yield Corporate Bond Portfolio 1 % Oppenheimer Limited Term Bond Portfolio % American Century Short Duration Inflation Protected Portfolio % 1. Prior to February 28, 2018, the Portfolio was named MainStay High Yield Corporate Bond Portfolio. SE Page 5 of 12

22 6 Portfolio Selection (continued) Global and International Fixed Income Portfolios Oppenheimer Global Strategic Income Portfolio % Oppenheimer International Bond Portfolio % Alternative Portfolios Oppenheimer Gold and Special Minerals Portfolio % Oppenheimer Real Estate Portfolio % Oppenheimer SteelPath MLP Select 40 Portfolio % Multi Asset Portfolios Oppenheimer Capital Income Portfolio % Oppenheimer Global Allocation Portfolio % Money Market Portfolio Oppenheimer Institutional Government Money Market Portfolio % Total 100 % Please select a minimum of two Portfolios. The required minimum initial Contribution to a Portfolio Allocator Account is $1,000. If you select Portfolio Allocator Portfolios in addition to any combination of Portfolios in the sections above you will be assigned a separate account number. Selecting any combination of the Individual Fund Portfolios allows you and your financial advisor to craft your own asset allocation to suit your investment preferences. As with any customized investment program, it is important that your financial advisor understands your longterm objectives and risk tolerance before constructing an asset allocation. IV. Portfolio Allocator By choosing Portfolio Allocator, your account may be rebalanced quarterly back to the allocation selected below. Please read the Plan Description and Participation Agreement for further information on the Portfolio Allocator features. Only the Portfolios below are eligible for rebalancing. Individual Fund Portfolios Initial Allocation U.S. Equity Portfolios Oppenheimer Discovery Portfolio % Oppenheimer Dividend Opportunity Portfolio % Oppenheimer Value Portfolio % T. Rowe Price Blue Chip Growth Portfolio % Oppenheimer Main Street Portfolio % Oppenheimer Main Street Mid Cap Portfolio % Oppenheimer Main Street Small Cap Portfolio % Global and International Equity Portfolios Oppenheimer International Small-Mid Company Portfolio % Oppenheimer Global Opportunities Portfolio % Oppenheimer International Diversified Portfolio % Oppenheimer International Growth Portfolio % Oppenheimer Developing Markets Portfolio % Oppenheimer Global Portfolio % Oppenheimer Global Value Portfolio % U.S. Fixed Income Portfolios Oppenheimer Total Return Bond Portfolio % Oppenheimer Limited Term Government Portfolio % Oppenheimer Senior Floating Rate Portfolio % American Century Diversified Bond Portfolio % MainStay MacKay High Yield Corporate Bond Portfolio 1 % Oppenheimer Limited Term Bond Portfolio % American Century Short Duration Inflation Protected Portfolio % SE Page 6 of 12

23 6 Portfolio Selection (continued) Global and International Fixed Income Portfolios Oppenheimer Global Strategic Income Portfolio % Oppenheimer International Bond Portfolio % Alternative Portfolios Oppenheimer Gold and Special Minerals Portfolio % Oppenheimer Real Estate Portfolio % Oppenheimer SteelPath MLP Select 40 Portfolio % Multi Asset Portfolios Oppenheimer Capital Income Portfolio % Oppenheimer Global Allocation Portfolio % Money Market Portfolio Oppenheimer Institutional Government Money Market Portfolio % Total 100 % All future Contributions will be allocated in the same manner as your initial investment selection shown above. To make any changes, please sign on to scholarsedge529.com or call a Customer Service Representative at SAVE (7283). 7 Initial Purchase (More than one option may be selected) The required minimum initial Contribution to an Age Based, Custom Choice or Individual Fund Portfolio Account is $250. The required minimum initial Contribution to a Portfolio Allocator Account is $1,000. If you choose to open both an Age Based, Custom Choice or Individual Fund Portfolio account and a Portfolio Allocator account, both minimum requirements must be met. The minimum initial Contribution is waived for Accounts to which Contributions are made through an Automatic Investment Plan (AIP) or payroll deductions provided that the $25 monthly minimum Contribution per Portfolio is met. This waiver does not apply to a Portfolio Allocator Account. Check: $ Checks should be made payable to Scholar s Edge FBO (Name of your Designated Beneficiary). Third-party checks are subject to review. We do not accept money orders. One-time Electronic Funds Transfer via Automated Clearing House (ACH) One-time electronic transfer from your bank account. Complete banking instructions in Section 8. Amount: $ Automatic Investment Plan (AIP) Scheduled, recurring purchases from your bank account. Complete banking instructions in Section 8. (A minimum of $25 per Portfolio is required.) Amount: $ Frequency: Monthly Quarterly Timing: Purchase on the on the 10th of the month.) day of the month. (If not provided, the purchase will occur Payroll Deduction Enclose an Employee Payroll Deduction Form. You can obtain this form by calling SAVE (7283) or by downloading the form at scholarsedge529.com Before electing the Payroll Deduction option, you should verify that your employer is currently processing Contributions through payroll direct deposit. If your employer is not currently set up to process Contributions through payroll direct deposit, you should confirm your employer offers such a service and is able to meet the Program Manager s operational and administrative requirement. If your employer is interested in establishing the payroll deduction option, please have the appropriate personnel fill out the Employer Authorization Form, which can be downloaded at scholarsedge529.com Rollover/Transfer from another Section 529 Account or from a Coverdell Education Savings Account/Qualified U.S. Savings Bond Enclose Scholar s Edge Change of Trustee/Rollover Form. You can obtain this form by calling SAVE (7283) or by downloading the form at scholarsedge529.com SE Page 7 of 12

24 8 Bank Account Information Bank account information is required to establish an Automatic Investment Plan or to make an Electronic Funds Transfer from your bank account. You must include a voided check (no starter checks) or a preprinted savings slip for a savings account. (Please do not tape or staple it to this application.) If your 529 account and bank account have different ownership, please fill out the Signature Guarantee in section 13. Your bank account will be debited approximately two business days prior to the date(s) you select or the next business day following a weekend or holiday. Please allow 10 days to process debit(s) from your account. Please choose which type of account you will be debiting. Indicate account type: Checking Savings I authorize OFI Private Investments Inc. (OFIPI) to debit and/or credit my bank account for purchases and redemptions of Units of the Portfolio(s) specified. I understand that if I redeem Units that have been purchased through a direct link from my bank account to my Account within the last 10 days, my redemption proceeds of those Units may be delayed up to 10 days to determine that the purchase payment has cleared the bank. I agree that OFIPI is purchasing and redeeming such Units voluntarily at my request and shall not be liable for any loss arising from any delay in processing or failure to process such purchases and/or redemptions. I understand that this service does not constitute an offer to sell Units of any Portfolio. If I change banks, I agree to notify OFIPI promptly in writing. I agree to give adequate notice (normally 15 days) to terminate this service. I understand that if a transaction cannot be made because of insufficient funds or Unit balance or because either account has been closed, this service will be cancelled and I agree to return promptly any amount overpaid to me from a redemption of Units purchased with that payment. I understand that any of the features and privileges described herein may be modified, suspended or cancelled by OFIPI or the Plan at any time without notice and that all services described herein are subject to the terms of the Plan Description and Participation Agreement, which I acknowledge I have received and read. Please print and sign exactly as your name appears on your plan account. Name of Bank Account Owner n Name of Bank Account Owner Signature of Bank Account Owner n Signature of Bank Account Owner SE Page 8 of 12

25 9 Reduced Sales Charge Letter of Intent A Letter of Intent is an investor s statement in writing to the Program Distributor of his or her intention to purchase a specified value of Class A and Class C Units in all of his or her Accounts in the Plan during a 13-month period. The Letter permits certain Account Owners to reduce the sales charge rate that applies to their purchases of Class A Units if they purchase Class A or Class C units of the Plan or shares of other Oppenheimer funds. Account Owners may also count the value of assets in other advisor-sold Section 529 Plans (within or outside of New Mexico) that are managed by OFI Private Investments Inc. or its affiliates and purchases of Class A, B and C shares of mutual funds advised by OppenheimerFunds, Inc. (except for Class A shares of Oppenheimer Government Money Market Fund, Inc. and Oppenheimer Government Cash Reserves for which no initial sales charge is paid). Please check the Letter of Intent dollar amount: $50,000 $100,000 $250,000 $500,000 $1,000,000 Rights of Accumulation Rights of Accumulation permit certain Account Owners to combine the value of assets in their Accounts within the Plan (regardless of the Unit Class selected) to reduce the initial sales charge applicable to the purchase of Class A Units. Account Owners may also count the value of assets in other advisor-sold Section 529 Plans (within or outside of New Mexico) that are managed by OFI Private Investments Inc. or its affiliates and purchases of Class A, B and C shares of mutual funds advised by OppenheimerFunds, Inc. (except for Class A shares of Oppenheimer Government Money Market Fund, Inc. and Oppenheimer Government Cash Reserves for which no initial sales charge is paid). Provide the account numbers eligible for reduced sales charges in the space provided below. Account Numbers SE Page 9 of 12

26 10 Third Party Access Please grant (name of party to whom you are granting account access) permission to request information regarding my 529 college savings plan account. I understand the party named above will not be able to transact on the account in any way and that the permission I grant will remain in effect until such time that I revoke the permission. 11 Account Profile Information The following information is being requested for internal purposes. Your responses will be kept confidential. If you have any questions regarding our privacy policy, call SAVE (7283) or visit our website at scholarsedge529.com. 1. How did you hear about Scholar s Edge? (You may select more than one.) News story Internet search Program representative/event Other Friend, family or colleague Financial advisor Employer 2. What aspect(s) of Scholar s Edge are most appealing to you? Tax advantages Flexibility Estate planning Affordability Professional money management 3. Indicate your education level (Select highest level completed.) High school Master s degree Some college Doctorate Associate s degree Professional Bachelor s degree 4. Annual household income $0 $24,999 $25,000 $39,999 $40,000 $74, Indicate the owner s ethnicity White Asian American African American Other $75,000 $99,999 $100,000 $249,999 Over $250,000 Hispanic/Latino Native American SE Page 10 of 12

27 12 Acknowledge and Consent By signing below, I certify and acknowledge the following: n The information contained in this form and in any required documentation is true, complete and correct. I have received, read and agree to the terms set forth in the Plan Description and Participation Agreement. I agree that OFI Private Investments Inc. (OFIPI) may use this information to attempt to verify my identity. OFIPI is requesting a copy of the Articles of Incorporation, Partnership document, Trust agreement or other similar documents solely for the purpose of verifying the identity of the Account Owner as required by federal law. OFIPI is not assuming any responsibility for monitoring, maintaining, interpreting or enforcing any terms or provisions of those documents. n I, the Account Owner, am 18 years of age or older. PLEASE NOTE: Your contribution may be transferred to the appropriate state if no activity occurs, or if statements of your account activity prove undeliverable, within the time period specified by state law. Account Owner, Trustee, Partner or Officer signature REQUIRED. Signature n Date (mm/dd/yyyy) n Title (if the account is held by a trust, corporation, estate or other entity) Signature n Date (mm/dd/yyyy) n Title (if the account is held by a trust, corporation, estate or other entity) Signature n Date (mm/dd/yyyy) n Title (if the account is held by a trust, corporation, estate or other entity) Mail initial deposits and future contributions to: Scholar s Edge P.O. Box Denver, CO Signature Guarantee Your signature(s) must correspond in every particular instance, without alteration, with your name(s) as printed on the current account registration. Acknowledgment of signature by a notary public is NOT acceptable. Please affix signature stamp with appropriate signature, title of officer and date. A signature guarantee is a warranty by a participant in a Securities Transfer Association Signature Guarantee Program that the signature is genuine and that the person signing is competent and authorized to sign. Many domestic banks or trust companies, credit unions, brokers, dealers, national securities exchanges, registered securities associations, clearing agencies or savings associations participate in such programs. A signature guarantee is required if you are adding third party bank account information. Affix Stamp Here Signature of Guarantor n Title n Date SE Page 11 of 12

28 IMPORTANT NOTICE TO NEW MEXICO TAXPAYERS As a result of recent federal tax law changes, the definition of Qualified Higher Education Expenses under Section 529 of the Internal Revenue Code have been expanded to include tuition expenses for K-12 Schools. K-12 Schools are elementary or secondary public, private or religious schools. Effective January 1, this change in the federal tax law permits Account Owners to withdraw up to $10,000 for tuition expenses from a 529 college savings account for K-12 Schools free of federal taxes. This limitation applies on a per-student basis, rather than a per-account basis. Although an individual may be the designated beneficiary of multiple accounts, that individual may receive a maximum of $10,000 in distributions free of federal tax, regardless of whether the funds are distributed from multiple accounts. The recent federal tax law changes also permit transfers from a 529 account to an account in a Qualified ABLE Program made before January 1, 2026, without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. ABLE accounts are subject to an annual contribution limit (currently $15,000). Transfers from a 529 account that cause the ABLE account to exceed the $15,000 limit will be subject to federal tax. This provision applies to 529 to ABLE transfers made after December 22, Under current New Mexico tax law, contributions to the New Mexico 529 plans by a New Mexico individual taxpayer may be deducted for New Mexico individual income tax purposes. In certain circumstances, the amounts deducted may be recaptured in subsequent years. Despite the new federal law changes for tuition expenses for K-12 Schools, it is possible that such K-12 tuition expenses will not constitute Qualified Higher Education Expenses under the New Mexico tax code, thereby resulting in a recapture of any deduction related to amounts distributed for such K-12 tuition expenses. In addition, amounts previously deducted for New Mexico income tax purposes will be recaptured if they are distributed from a New Mexico 529 plan account to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualified Withdrawal for federal tax purposes). Account Owners who are New Mexico taxpayers should consult their own tax advisors before making withdrawals from a New Mexico 529 plan for K-12 tuition expenses or transferring funds from a New Mexico 529 Plan to a Qualified ABLE Program. Account Owners who are New Mexico taxpayers should consult their own tax advisors before making withdrawals from a New Mexico 529 plan for K-12 tuition expenses or transferring funds from a New Mexico 529 Plan to a Qualified ABLE Program. Scholar s Edge is operated as a qualified tuition program offered by The Education Trust Board of New Mexico and is available to all U.S. residents. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager for Scholar s Edge and OppenheimerFunds Distributor, Inc. is the distributor of Scholar s Edge. Scholar s Edge is distributed by OppenheimerFunds Distributor, Inc. Member FINRA, SIPC 225 Liberty Street, New York, NY Scholar s Edge and the Scholar s Edge logo are registered trademarks of The Education Trust Board of New Mexico used under license. SE April 27, 2018 Page 12 of 12

29 SCHOLAR S EDGE Change of Trustee/ Rollover Form 1 Instructions Print clearly in all CAPITAL LETTERS using blue or black ink. When requested, please color in circles completely. Please use this form for the following: n Rollover assets from another Section 529 Plan, Coverdell Education Savings Account, or Qualified Savings Bonds n Transfer assets from another New Mexico 529 Program If you have any questions, please call us at SAVE (7283) Monday through Friday from 6:00am to 6:00pm, Mountain Time. Please mail the completed form with any required documents to the following address: Scholar s Edge P.O. Box Denver, CO Scholar s Edge Account Information If you have not established an account, you must complete and enclose an Enrollment Application, which you can either download from Scholarsedge529.com or by talking with your advisor. n Account number Social Security or Taxpayer ID Number Account Owner s first name n Middle initial n Last name Street address or P.O. Box number City n State n Zip n Account Owner s address Phone number Beneficiary s first name n Middle initial n Last name Special note should be taken when selecting a new Designated Beneficiary as multiple rollovers for a beneficiary within a 12-month period or the designation of a beneficiary who is not a Qualified Family Member may result in additional taxes or penalties. See the Plan Description for potential tax consequences and other considerations. Beneficiary s Social Security or Taxpayer ID Number n Beneficiary s date of birth Is the beneficiary named above different from the beneficiary on your current Section 529 Plan College Savings Account? Yes No SE Page 1 of 8

30 3 Instructions to Current/Resigning Trustee A. Indicate the source of your Rollover/Transfer (check one): Section 529 College Savings plan outside of New Mexico New Mexico sponsored 529 plan (allowed twice per calendar year) Coverdell Education Savings Account Qualified Savings Bonds Please check with current Program Manager to see if they require a Signature Guarantee. B. Indicate whether this is an Indirect Rollover or a Direct Rollover request (Check one and complete additional information as requested for a Direct Rollover. Note that a Direct Rollover is only permissible for assets held in The Education Plan or another Section 529 College Savings plan account.) Indirect Rollover: I am enclosing a check representing the rollover proceeds. Direct Rollover: I am requesting and instructing Scholar s Edge to act on my behalf to obtain funds directly from the trustee of my current Section 529 College Saving Program Account. For a Direct Rollover, please fill in the information requested below, and include a copy of your current account statement. Your current Program Manager may require additional information. Name of Current Program Manager n Account Number Street Address or P.O. Box number of the processing department of Current Program Manager City n State n Zip Program phone number n State Sponsor (if applicable) Full Account Partial Account Portfolio % or $ Portfolio % or $ Portfolio % or $ SE Page 2 of 8

31 3 Instructions to Current/Resigning Trustee (continued) C. Indicate which portion of the Rollover or Transfer is attributable to contributions (cost basis), and which is attributable to earnings. Otherwise, your entire Rollover or Transfer is required to be treated as earnings which may be taxable upon withdrawal. For further details, please call your Program Manager. $ Total Amount of Rollover/Transfer $ Base Contribution or Cost Basis of Rollover/Transfer $ Earnings Portion of Rollover/Transfer D. Please indicate below if you would like your rollover dollars allocated differently than your Elected Investment Allocation. I. Age Based Portfolio Initial Allocation % II. Custom Choice Portfolios Portfolio 100 % Portfolio 90 % Portfolio 80 % Portfolio 70 % Portfolio 60 % Portfolio 50 % Portfolio 40 % Portfolio 30 % Portfolio 20 % Portfolio 10 % Low Duration Fixed Income Portfolio % Fixed Income Portfolio % Capital Preservation Portfolio % SE Page 3 of 8

32 3 Instructions to Current/Resigning Trustee (continued) III. Individual Fund Portfolios U.S. Equity Portfolios Oppenheimer Discovery Portfolio % Oppenheimer Dividend Opportunity Portfolio % Oppenheimer Value Portfolio % T. Rowe Price Blue Chip Growth Portfolio % Oppenheimer Main Street Portfolio % Oppenheimer Main Street Mid Cap Portfolio % Oppenheimer Main Street Small Cap Portfolio % Global and International Equity Portfolios Oppenheimer International Small-Mid Company Portfolio % Oppenheimer Global Opportunities Portfolio % Oppenheimer International Diversified Portfolio % Oppenheimer International Growth Portfolio % Oppenheimer Developing Markets Portfolio % Oppenheimer Global Portfolio % Oppenheimer Global Value Portfolio % U.S. Fixed Income Portfolios Oppenheimer Total Return Bond Portfolio % Oppenheimer Limited Term Government Portfolio % Oppenheimer Senior Floating Rate Portfolio % American Century Diversified Bond Portfolio % MainStay MacKay High Yield Corporate Bond Portfolio 1 % Oppenheimer Limited Term Bond Portfolio % American Century Short Duration Inflation Protected Portfolio % Global and International Fixed Income Portfolios Oppenheimer Global Strategic Income Portfolio % Oppenheimer International Bond Portfolio % Alternative Portfolios Oppenheimer Gold and Special Minerals Portfolio % Oppenheimer Real Estate Portfolio % Oppenheimer SteelPath MLP Select 40 Portfolio % Multi Asset Portfolios Oppenheimer Capital Income Portfolio % Oppenheimer Global Allocation Portfolio % Money Market Portfolio Oppenheimer Institutional Government Money Market Portfolio % Total 100 % 1. Prior to February 28, 2018, the Portfolio was named MainStay High Yield Corporate Bond Portfolio. SE Page 4 of 8

33 3 Instructions to Current/Resigning Trustee (continued) IV. Portfolio Allocator By choosing Portfolio Allocator, your account may rebalance quarterly back to your Elected Investment Allocation. If you choose to allocate your rollover dollars in a different manner, please be aware these dollars may rebalance back to your Elected Investment Allocation at quarter end. If you wish to update your Elected Investment Allocation, please call SAVE (7283). Please read the Plan Description and Participation Agreement for further information on the Portfolio Allocator features. Only the Portfolios below are eligible for rebalancing. If you don t have an existing Portfolio Allocator account, please select a minimum of two portfolios. The required minimum initial Contribution to a Portfolio Allocator Account is $1,000. If you re selecting Portfolio Allocator for the first time, you will be assigned a separate account number. U.S. Equity Portfolios Oppenheimer Discovery Portfolio % Oppenheimer Dividend Opportunity Portfolio % Oppenheimer Value Portfolio % T. Rowe Price Blue Chip Growth Portfolio % Oppenheimer Main Street Portfolio % Oppenheimer Main Street Mid Cap Portfolio % Oppenheimer Main Street Small Cap Portfolio % Global and International Equity Portfolios Oppenheimer International Small-Mid Company Portfolio % Oppenheimer Global Opportunities Portfolio % Oppenheimer International Diversified Portfolio % Oppenheimer International Growth Portfolio % Oppenheimer Developing Markets Portfolio % Oppenheimer Global Portfolio % Oppenheimer Global Value Portfolio % U.S. Fixed Income Portfolios Oppenheimer Total Return Bond Portfolio % Oppenheimer Limited Term Government Portfolio % Oppenheimer Senior Floating Rate Portfolio % American Century Diversified Bond Portfolio % MainStay MacKay High Yield Corporate Bond Portfolio 1 % Oppenheimer Limited Term Bond Portfolio % American Century Short Duration Inflation Protected Portfolio % Global and International Fixed Income Portfolios Oppenheimer Global Strategic Income Portfolio % Oppenheimer International Bond Portfolio % Alternative Portfolios Oppenheimer Gold and Special Minerals Portfolio % Oppenheimer Real Estate Portfolio % Oppenheimer SteelPath MLP Select 40 Portfolio % Multi Asset Portfolios Oppenheimer Capital Income Portfolio % Oppenheimer Global Allocation Portfolio % Money Market Portfolio Oppenheimer Institutional Government Money Market Portfolio % Total 100 % SE Page 5 of 8

34 4 Signatures I authorize OppenheimerFunds to act on my behalf in contacting the current 529 Plan Program Manager to facilitate the transfer of assets. I hereby certify that (1) the information provided herein is accurate, (2) the Designated Beneficiary on the Scholar s Edge account is a member of the family of the Designated Beneficiary in the current program (as defined in the Plan Description and Participation Agreement), or (3) this Rollover does not change the Beneficiary, and is the only Rollover for the Beneficiary within the past 12 months, and if applicable, (4) my contributions of rollover proceeds from another account is within 60 days of receiving the refund. I understand that if I fail to provide the required information mentioned in Section 3C, the entire amount of the rollover contribution will be treated as earnings that may be taxable upon withdrawal. Signature of Account Owner, Custodian, Trustee, Partner, or Officer n Date Signature of Co-Trustee, Partner or Officer n Date Signature Guarantee (Call your Program Manager to determine if a signature guarantee is required.) A Signature Guarantee may be obtained from any eligible guarantor institution, as defined by the Securities and Exchange Commission. These institutions include banks, savings associations, credit unions and brokerage firms. The words SIGNATURE GUARANTEED must be stamped or typed near the signature(s) being guaranteed. The guarantee must appear with the printed name, title, and signature of an officer and the name of the guarantor institution. A NOTARY PUBLIC STAMP OR SEAL IS NOT ACCEPTABLE. Affix medallion stamp here Signature Guarantee s first name (if required) n Middle initial n Last name Title n Signature Guarantee n Date Before you mail, have you Completed a Scholar s Edge Account Application, if you are opening a new account? Included documents from your current Program Manager, if required? Written a check payable to Scholar s Edge for an Indirect Rollover? Signed, and obtained a Signature Guarantee, if needed, for Section 4? 5 For OppenheimerFunds use only The Program Manager of Scholar s Edge will complete this acceptance agreement. As Program Manager of Scholar s Edge, we will accept the rollover/transfer requested. Authorized Program Manager s Signature n Date SE Page 6 of 8

35 SE Page 7 of 8

36 IMPORTANT NOTICE TO NEW MEXICO TAXPAYERS As a result of recent federal tax law changes, the definition of Qualified Higher Education Expenses under Section 529 of the Internal Revenue Code have been expanded to include tuition expenses for K-12 Schools. K-12 Schools are elementary or secondary public, private or religious schools. Effective January 1, this change in the federal tax law permits Account Owners to withdraw up to $10,000 for tuition expenses from a 529 college savings account for K-12 Schools free of federal taxes. This limitation applies on a per-student basis, rather than a per-account basis. Although an individual may be the designated beneficiary of multiple accounts, that individual may receive a maximum of $10,000 in distributions free of federal tax, regardless of whether the funds are distributed from multiple accounts. The recent federal tax law changes also permit transfers from a 529 account to an account in a Qualified ABLE Program made before January 1, 2026, without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. ABLE accounts are subject to an annual contribution limit (currently $15,000). Transfers from a 529 account that cause the ABLE account to exceed the $15,000 limit will be subject to federal tax. This provision applies to 529 to ABLE transfers made after December 22, Under current New Mexico tax law, contributions to the New Mexico 529 plans by a New Mexico individual taxpayer may be deducted for New Mexico individual income tax purposes. In certain circumstances, the amounts deducted may be recaptured in subsequent years. Despite the new federal law changes for tuition expenses for K-12 Schools, it is possible that such K-12 tuition expenses will not constitute Qualified Higher Education Expenses under the New Mexico tax code, thereby resulting in a recapture of any deduction related to amounts distributed for such K-12 tuition expenses. In addition, amounts previously deducted for New Mexico income tax purposes will be recaptured if they are distributed from a New Mexico 529 plan account to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualified Withdrawal for federal tax purposes). Account Owners who are New Mexico taxpayers should consult their own tax advisors before making withdrawals from a New Mexico 529 plan for K-12 tuition expenses or transferring funds from a New Mexico 529 Plan to a Qualified ABLE Program. Scholar s Edge is operated as a qualified tuition program offered by The Education Trust Board of New Mexico and is available to all U.S. residents. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager for Scholar s Edge and OppenheimerFunds Distributor, Inc. is the distributor of Scholar s Edge. Scholar s Edge is distributed by OppenheimerFunds Distributor, Inc. Member FINRA, SIPC 225 Liberty Street, New York, NY Scholar s Edge and the Scholar s Edge logo are registered trademarks of The Education Trust Board of New Mexico used under license. SE April 27, 2018 Page 8 of 8

37 Supplemental Ownership Information Form For Corporate Entity Accounts Instructions In accordance with Federal regulations, OppenheimerFunds is required to collect information about individuals associated with certain entities at the time of account opening. This requirement generally applies to legal entities that are required to file registration documents with their respective Secretary of State or similar office. Provide this completed form and any accompanying account opening documentation to OppenheimerFunds Services. Upload Forms: Fax: oppenheimerfunds.com/upload USA PATRIOT Act requirements To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means for you: When you open an account, we need to capture certain information that allows us to verify your identity. The information on this form needs to be provided for all individuals who will be the registered owner or co-owner of an account or will be signing on behalf of a legal entity that will own the account. Regular Mail: Overnight Mail: P.O. Box S. Tucson Way Denver, CO Centennial, CO Corporate entity information Type of entity Please select one: S Corporation C Corporation Estate Partnership LLC: Please also indicate C Corporation, Partnership, S Corporation Trust Other Entity: Please indicate the type of business Check if appropriate: I am an exempt recipient as defined under U.S. federal income tax regulations. Name of Trust/Trust agreement date, corporation, estate, partnership, or other entity Tax Identification Number of legal entity BO Page 1 of 3

38 2 Account ownership Fill out the information in the table below for the following individuals (note that it is your responsibility to inform OppenheimerFunds of updates to the information in the table): A. If applicable: Trustee, executor, or first/second authorized signer (for trusts and corporations, this form must be signed by all trustees or corporate officers whose signatures are required under their trust agreement or corporate bylaws). B. Control person: Provide the name of an individual with significant responsibility to control, manage, or direct the legal entity customer (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer). C. Beneficial owners: Provide the names of all individuals who own directly or indirectly 25% or more of the legal entity for which this account is being established. If no individual meets this definition, please reflect NONE. If appropriate, an individual listed under this section may also be listed as the Control person. Full Name/Title Physical Address* Date of Birth Social Security Number** Daytime Phone # % Ownership Trustee, executor or first authorized signer Trustee, executor or second authorized signer Control person 25% or more Owner 25% or more Owner 25% or more Owner 25% or more Owner *We cannot accept a P.O. Box as a residential address; APO/FPO addresses are accepted. ** Foreign persons can provide a passport number, alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence that bears a photograph or similar safeguard (a photocopy of the foreign identification document must accompany this form). If the entity for which this account is being established is owned or controlled by another legal entity, these same requirements apply for individuals associated with that other legal entity. BO Page 2 of 3

39 3 Signature Signature of authorized representative The individual who signs this form certifies on behalf of the legal entity identified that: I am an authorized representative of the entity, and I understand that OppenheimerFunds Services will use this document for the purpose of verifying the identity of the beneficial owners and control person as required by federal law. I hereby certify, to the best of my knowledge, that the information provided in the table above is complete and correct. Should this form be signed electronically, I acknowledge and agree that such electronic signature is valid evidence of my consent to be legally bound by this form and such subsequent terms as may govern this form. The electronic image of this form is considered to be the true, complete, valid, authentic and enforceable record of the form, admissible in judicial or administrative proceedings to the same extent as if the documents and records were originally generated and maintained in printed form. I agree not to contest to the admissibility or enforceability of the electronic copy of this form. Please note that any OppenheimerFunds-affiliated entity reserves the right and discretion to require additional documentation to process this form. Printed Name Date (mm/dd/yyyy) X Signature Title BO May 2, 2018 Page 3 of 3

40 Scholar s Edge Supplement dated March 26, 2018 to Plan Description dated February 26, 2018 This Supplement amends the Plan Description and Participation Agreement dated February 26, 2018 (the Plan Description ). You should read this Supplement in conjunction with the Plan Description and retain it for future reference. Capitalized terms not otherwise defined in this Supplement have the meanings assigned to them in the Plan Description. Underlying Investments and Target Allocations The following information replaces the information for the Low Duration Fixed Income Portfolio and the Fixed Income Portfolio appearing in the table titled Age Based and Custom Choice Portfolios on pages 24 and 25 of the Plan Description. Underlying Investments 1 and Target Allocations Custom Choice Portfolios Age Based Portfolios Low Duration Fixed Income Portfolio Fixed Income Portfolio Oppenheimer Value Fund 0.0% 0.0% T. Rowe Price Blue Chip Growth Fund Oppenheimer Main Street Fund Oppenheimer Main Street Mid Cap Fund Oppenheimer Main Street Small Cap Fund Oppenheimer Capital Income Oppenheimer Developing Markets Fund Oppenheimer International Growth Fund Oppenheimer Global Fund Oppenheimer Global Value Fund Oppenheimer Real Estate Fund Oppenheimer Steel Path MLP Select American Century Diversified Bond Fund Oppenheimer Total Return Bond Fund Oppenheimer International Bond Fund

41 Oppenheimer Limited-Term Bond Fund Oppenheimer Limited-Term Government Fund Oppenheimer Senior Floating Rate Fund MainStay High Yield Corporate Bond Fund American Century Short Duration Inflation Protected Oppenheimer Institutional Government Money Market Fund NYLIM Funding Agreement Total Equity 0.0% 0.0% Total Alternatives Total Fixed Income/Short-Term Marketable Securities Stable Value Investment Portfolios that invest in Oppenheimer mutual funds purchase Class I shares or Class L shares in the case of Oppenheimer Institutional Government Money Market Fund. Portfolios that invest in the Main Stay High Yield Corporate Bond Fund purchase Class I shares. Portfolios that invest in the American Century funds purchase Institutional class shares. 2. Oppenheimer Capital Income Fund is a multi-asset fund that invests in both equity and fixed income securities. Allocations are based on an approximate ratio of 35% equity and 65% fixed income. 3. A Portfolio s investment in the Oppenheimer Institutional Government Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. 4. Effective February 28, 2018, the fund will be renamed Mainstay MacKay High Yield Corporate Bond Fund. SE

42 Scholar's Edge Participation Agreement February 26, 2018 ARTICLE I INTRODUCTION This Participation Agreement describes the terms and conditions of Scholar s Edge (the Plan ) within The Education Plan Trust of New Mexico ( Trust ), as authorized by N.M. Stat. Ann. Sec K-3 et seq. ( Statute ), which has been designed to comply with the requirements of a qualified tuition program under Section 529 of the Internal Revenue Code of 1986, as amended ( Code ). The Plan is established and maintained pursuant to New Mexico state law so that persons may save in a tax-advantaged manner for the purpose of meeting the Qualified Higher Education Expenses of the Designated Beneficiary at Eligible Education Institutions. As a result of federal tax law changes signed into law on December 22, 2017, the definition of Qualified Higher Education Expenses has been expanded to include tuition expenses for K-12 Schools. K-12 Schools are elementary or secondary public, private, or religious schools. Effective January 1, 2018, this expansion of Qualified Higher Education Expenses, permits Account Owners to withdraw up to $10,000 for tuition expenses from a 529 college savings account for K-12 Schools free of federal income taxes. This limitation applies on a per-student basis, rather than a per-account basis. Although an individual may be the designated beneficiary of multiple accounts, that individual may receive a maximum of $10,000 in distributions free of federal tax, regardless of whether the funds are distributed from multiple accounts. Before using the Plan to save for tuition expenses at K-12 Schools, or making withdrawals from the Plan for tuition expenses at K-12 Schools, Account Owners should consider that the Investment Portfolios within the Plan were designed for college savers (e.g., persons saving for undergraduate and graduate school) not saving for tuition expenses at K-12 Schools, and therefore Account Owners should take into account their investment horizon before making contributions to the Plan. Under current New Mexico tax law, contributions to the New Mexico 529 plans by a New Mexico individual taxpayer may be deducted for New Mexico individual income tax purposes. In certain circumstances, the amounts deducted may be recaptured in subsequent years. Despite the new federal law changes for tuition expenses for K-12 Schools, it is possible that such K-12 tuition expenses will not constitute Qualified Higher Education Expenses under the New Mexico tax code, thereby resulting in a recapture of any deduction related to amounts distributed for such K-12 tuition expenses. In addition, amounts previously deducted for New Mexico income tax purposes will be recaptured if they are distributed from a New Mexico 529 plan account to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualified Withdrawal for federal tax purposes). Account Owners who are New Mexico taxpayers should consult their own tax advisors before making withdrawals from a New Mexico 529 plan for K-12 tuition expenses or transferring funds from a New Mexico 529 Plan to a Qualified ABLE Program. The recent federal tax law changes also permit transfers from a 529 account to an account in a Qualified ABLE Program made before January 1, 2026, without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. ABLE accounts are subject to an annual contribution limit (currently $15,000). Transfers from a 529 account that cause the ABLE account to exceed the $15,000 limit will be subject to federal tax. This provision applies to 529-to-ABLE transfers made after December 22, As of the date of this Plan Description, the IRS has not issued regulations on the recent tax law changes. Therefore, the information presented is based on a good faith interpretation of the statutory language. If, and when, material updates become available we will update the Plan s website and this Plan Description. The Account Owner, not the Plan or the Program Manager, will be responsible for any losses or taxes arising from the use of the Plan for tuition expenses at K-12 Schools. Please consult with your tax advisor for more information. New Mexico state laws and the federal tax laws are subject to change, and none of The Education Trust Board of New Mexico ( Board or, when applicable, the Trustee ), the Trust, OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., (the Program Manager ) or its affi liates makes any representations that such state laws or federal tax laws will not be changed or repealed.

43 Once an application ( Enrollment Application ) for an Account is completed by the applicant ( Account Owner ) and the minimum initial Contribution required to fund an Account is made by the Account Owner and both are accepted by the Board or an agent designated by the Board, a Confi rmation will be delivered to the Account Owner. Account assets will be held, subject to the Statute and the Code, for the exclusive benefi t of the Account Owner and the benefi ciary designated by the Account Owner ( Designated Benefi ciary ). The Trustee has engaged the Program Manager to provide administrative, investment management, recordkeeping, and related services to the Board and the Trust in connection with the Plan. OppenheimerFunds Distributor, Inc. (the Program Distributor ) is the sole distributor of the Plan and provides marketing services to the Board. The Enrollment Application signed by the Account Owner and returned to the Program Manager or an agent designated by the Program Manager, this Participation Agreement and the Plan disclosure statement ( Plan Description ), as each may be amended and supplemented from time to time, constitute the contract between the Account Owner, the Trust, and the Board governing the Account. The Board may modify this Participation Agreement at any time to the extent necessary to assure compliance with applicable state or federal laws or regulations or to preserve the favorable tax treatment of the Plan or the favorable tax treatment of interests of Account Owners or Designated Benefi ciaries therein. The Statute and any rules adopted by the Board ( Program Rules ) are available for inspection at the Board s offi ce. Any Account Owner or other interested party may receive a copy of the Statute and the Program Rules from the Program Manager upon request. Nothing in this Participation Agreement shall be interpreted as a promise or guarantee that a Designated Beneficiary: (1) will be admitted to any educational institution ; (2) will be allowed to continue enrollment at any institution after admission; (3) will graduate or receive a degree from any institution ; (4) will have his/her Qualified Higher Education Expenses covered in full by amounts invested by an Account Owner; (5) will be treated as a state resident of any state for tuition or any other purpose; (6) will receive any particular treatment under applicable federal or state financial aid programs; or (7) will receive any part of or treatment from financial aid programs of any institution. In addition, nothing in the Participation Agreement shall be interpreted as a promise or guarantee of income on, or protection of principal of, any Account. See Article III of this Participation Agreement. Capitalized terms used but not defi ned in this Participation Agreement shall have the same meaning as in the Plan Description, as amended and supplemented from time to time. ARTICLE II PARTICIPATION IN THE PLAN 1. Establishing an Account. In order to participate in the Plan, an Account Owner must designate on the Enrollment Application the name, address, Taxpayer Identification number ("TIN") and the date of birth of the Designated Beneficiary. The Account Owner must also (i) provide the Account Owner s TIN, a valid United States address and date of birth and (ii) indicate the Portfolio(s) selected, and provide such other information as may be required by the Board from time to time. Acceptable forms of TINs include social security numbers ( SSN ), Individual Taxpayer Identification Numbers ( ITIN ) and Employer Identification Numbers ( EIN ) depending on the account registration type. The Account Owner must be at least 18 years of age. 2. Contributions to Accounts. (a) Minimum Initial Contribution. The minimum initial Contribution required to open an Account is $250 and may be allocated among as many Portfolios as the Account Owner desires, provided that the minimum initial Contribution per Portfolio is $25. The minimum initial Contribution amount of $250 is waived if the Account Owner agrees to enter into an Automatic Investment Plan ("AIP") through automatic payments from the Account Owner's bank account or other fi nancial institution or through payroll deductions into their Account, if available. (b) Additional Contributions. Additional Contributions of $25 or more may be made at any time, subject to the maximum limits on Contributions described below. Any Contribution to an Account by a contributor who is not the Account Owner becomes the property of the Account Owner. Any additional Contributions made for a Designated Benefi ciary will go into the Portfolio(s) originally selected by the Account Owner absent instructions to allocate future Contributions to a new Portfolio. If an Account is opened but not funded within 90 days of opening, the Program Manager reserves the right to close the Account, thereby terminating the Account. (c) Right to Refuse Contributions. A Contribution, rollover or transfer may be refused if the Board or the Program Manager reasonably believes that (i) the purpose is for other than funding the Qualifi ed Higher Education Expenses of the Designated Benefi ciary of an Account, (ii) there appears to be an abuse of the Plan, or (iii) such transaction is unlawful. The Plan may not be able to determine that a specifi c Contribution, rollover or transfer is for other than funding the Qualifi ed Higher Education Expenses of a Designated Benefi ciary, or abusive or unlawful. The Plan therefore makes no representation that all such Contributions, rollovers or transfers can or will be rejected. 3. Acceptable Contribution Methods. Contributions to an Account may be made by check, automatic payment from the Account Owner s bank account or other financial institution, electronic funds transfer, federal funds wire or payroll deduction if the Account Owner s employer offers this option and is able to meet the Program Manager s operational and administrative requirements, or any other method permitted by the Statute and the Code. Contributions by money order will not be accepted. An authorization form is included as part of the Enrollment Application. An authorization to make automatic payments will remain in effect until the Program Manager has received notification of its termination. Account Owners or the Program Manager may terminate automatic payments at any time. Any termination of automatic payments authorization initiated by an Account Owner must be made by writing the Program Manager, by calling the Program Manager, or by completing the appropriate section online and will become ii

44 effective as soon as the Program Manager has had a reasonable amount of time to implement the change. All Contributions must be in cash. The Program Manager cannot accept securities or other property. Rollover contributions to an Account from another qualified tuition plan must be accompanied by the Rollover/Change of Trustee Form and any other required documentation. 4. Maximum Permissible Account Balance. Currently, the maximum aggregate Account balance per Designated Beneficiary is $500,000 and, once such maximum balance is reached, no further Contributions for the benefit of the same Designated Beneficiary will be allowed, although the Account balance may continue to increase due to appreciation of its holdings. All Accounts for the same Designated Beneficiary within the New Mexico 529 Program will be combined for purposes of determining whether the maximum Account balance has been reached, even if those Accounts have different Account Owners. This maximum balance amount may be recalculated or adjusted by the Board at any time based on the estimated cost of Qualified Higher Education Expenses in accordance with applicable tax rules. The Board has established the maximum account balance limit for the New Mexico 529 Program designed to ensure that Contributions in the New Mexico 529 Program on behalf of a Designated Beneficiary do not exceed the amount necessary to provide for such Designated Beneficiary s Qualified Higher Education Expenses in accordance with applicable tax rules. Contributions made when those limits have been reached will not be accepted and will be returned to the contributor. Contribution of the maximum amount, however, does not guarantee that the Account balance will be adequate to cover the Qualified Higher Education Expenses of a particular Designated Beneficiary. 5. Designation of Designated Beneficiary; Change of Designated Beneficiary. At the time of enrollment, the Account Owner (other than state or local governments or tax-exempt organizations described in Section 501(c)(3) of the Code) must designate a beneficiary for the Account. There may be only one Account Owner and one Designated Beneficiary per Account. The Account Owner may change the Designated Beneficiary of the Account named on the Enrollment Application, provided the new Designated Beneficiary is a Member of the Family, within the meaning of the Code, of the current Designated Beneficiary. To change a Designated Beneficiary, the Account Owner must complete and sign an Account Maintenance Form. The change will be effective when the Program Manager has received and processed the Account Maintenance Form. A change of Designated Beneficiary will result in the assignment of a new Account number and may result in the reallocation of the Account s assets to another Portfolio. A change of Designated Benefi ciary also may have federal gift tax and generation-skipping transfer ( GST ) tax implications. You should consult your tax advisor regarding this matter. 6. Limited Investment Direction. No Account Owner, Designated Beneficiary or contributor may direct the investment of any Contributions or any earnings thereon either directly or indirectly, other than to select from the available Portfolios prior to a Contribution. In addition, Account Owners may not choose the Underlying Investments in which a Portfolio invests. However, the federal tax rules, as of the date this Participation Agreement was printed, allow Account Owners to move Contributions or any earnings thereon from one or more Portfolios to one or more other Portfolios for all Accounts for the same Designated Beneficiary in the New Mexico 529 Program either (i) twice per calendar year or (ii) when the Account Owner changes the Designated Beneficiary from the existing Designated Beneficiary to a Member of the Family of the existing Designated Beneficiary (such transfer will be free from income tax and the 10% additional federal tax on earnings, but may result in gift or GST tax consequences). In the event that future tax rules governing investment discretion with respect to qualified tuition programs provide greater investment flexibility for the participants of qualified tuition programs, it is the intent of the Board to adjust the New Mexico 529 Program s rules accordingly. However, to the extent future tax rules are more restrictive than those described in this Participation Agreement or the Plan Description, both shall be deemed to be automatically amended to reflect such more restrictive rules. No interest in an Account or any portion thereof shall be used as security for a loan. 7. No Ownership Interest in Underlying Investments. Although Account Owners will have an interest in a specifi ed Portfolio(s), Account Owners do not have a direct benefi cial interest in the mutual funds and other investments held by the Portfolio(s), and therefore, Account Owners do not have the rights of an owner or shareholder of such investments. 8. Account Owner Instructions. The Program Manager may accept and rely conclusively on any instructions or other communications reasonably believed to have been given by an Account Owner or another authorized person and may assume that the authority of any other authorized person continues in effect until the Program Manager receives written notice to the contrary. ARTICLE III INVESTMENTS AND WITHDRAWALS 1. No Guarantee of Income or Principal; No Insurance. (a) Account investment returns will vary. In addition, there can be no assurance that an Account will be suffi cient to cover Qualifi ed Higher Education Expenses of the Designated Benefi ciary. (b) An Account will fluctuate in value and may be worth more or less than the amounts contributed at any given time. An investment in the Portfolios, like any investment, has risks, including, but not limited to, those described in the Plan Description under the heading PLAN AND PORTFOLIO RISKS. Portfolio values will rise and fall and there is a risk you could lose all or part of your money by investing your Account in a Portfolio. There can be no assurance that a Portfolio, or an Underlying Investment in which a Portfolio invests, will achieve its objective. Plan Accounts are not bank deposits, are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Association, are not debt or obligations of, or guaranteed by, any bank or other financial institution or the Plan, The Education Trust Board of New Mexico or its members, The Education Plan Trust of New Mexico, the State of New Mexico, OFI Private Investments Inc., OppenheimerFunds Distributor, Inc. or any financial advisor. iii

45 2. No Guarantee of Future Performance. How a Portfolio, or an Underlying Investment in which a Portfolio invests, has performed in the past is not necessarily an indication of how it will perform in the future. 3. Qualified Withdrawals from Accounts. The Account Owner may direct distributions from an Account for the Qualified Higher Education Expenses of the Designated Beneficiary by providing the Program Manager a Withdrawal Form in writing and any additional required documentation (subject to a 5 business day hold following each Contribution), by calling the Program Manager or by completing the appropriate section online. Distributions may be used at any Eligible Institution of Higher Education ( Eligible Educational Institution ). Generally, this includes any accredited two-year or four-year college or university in the United States or abroad that is eligible to participate in certain federal student financial aid programs, as well as certain accredited proprietary or vocational schools that are eligible to participate in federal student financial aid programs and certain specified military academies. Distributions may also be applied toward graduate or professional school costs at an Eligible Educational Institution. Before using the Plan to save for tuition expenses at K-12 Schools, or making withdrawals from the Plan for tuition expenses at K-12 Schools, Account Owners should consider that the Investment Portfolios within the Plan were designed for college savers (e.g., persons saving for undergraduate and graduate school) not saving for tuition expenses at K-12 Schools, and therefore Account Owners should take into account their investment horizon before making contributions to the Plan. Under current New Mexico tax law, contributions to the New Mexico 529 plans by a New Mexico individual taxpayer may be deducted for New Mexico individual income tax purposes. In certain circumstances, the amounts deducted may be recaptured in subsequent years. Despite the new federal law changes for tuition expenses for K-12 Schools, it is possible that such K-12 tuition expenses will not constitute Qualified Higher Education Expenses under the New Mexico tax code, thereby resulting in a recapture of any deduction related to amounts distributed for such K-12 tuition expenses. In addition, amounts previously deducted for New Mexico income tax purposes will be recaptured if they are distributed from a New Mexico 529 plan account to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualified Withdrawal for federal tax purposes). Account Owners who are New Mexico taxpayers should consult their own tax advisors before making withdrawals from a New Mexico 529 plan for K-12 tuition expenses or transferring funds from a New Mexico 529 Plan to a Qualified ABLE Program. The recent federal tax law changes also permit transfers from a 529 account to an account in a Qualified ABLE Program made before January 1, 2026, without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. ABLE accounts are subject to an annual contribution limit (currently $15,000). Transfers from a 529 account that cause the ABLE account to exceed the $15,000 limit will be subject to federal tax. This provision applies to 529-to-ABLE transfers made after December 22, As of the date of this Plan Description, the IRS has not issued regulations on the recent tax law changes. Therefore, the information presented is based on a good faith interpretation of the statutory language. If, and when, material updates become available we will update the Plan s website and this Plan Description. The Account Owner, not the Plan or the Program Manager, will be responsible for any losses or taxes arising from the use of the Plan for tuition expenses at K-12 Schools. Please consult with your tax advisor for more information. 4. Nonqualified Withdrawals from Accounts. An Account Owner may request a Nonqualifi ed Withdrawal from an Account (may be subject to a 5 business day hold following each Contribution). A Nonqualifi ed Withdrawal will be subject to an additional 10% federal tax on the earnings portion of the distribution, and such earnings will also be subject to ordinary federal and any applicable state income taxation as well as the recapture of all previous New Mexico tax deductions taken for Contributions to an Account. Other penalties may also apply to a Nonqualifi ed Withdrawal. 5. Other Withdrawals from Accounts. An Account Owner may authorize distributions from the Account as a result of the Designated Benefi ciary s death, disability, receipt of a scholarship or attendance at a qualifying military academy. Withdrawals due to the Designated Benefi ciary s death, disability, receipt of a scholarship or attendance at a qualifying military academy will not be subject to the additional 10% federal tax on earnings, but the earnings portion of such withdrawals will be subject to income taxes at the ordinary federal income tax rates. State taxes may also apply. Scholarship distributions are limited to the amount of the scholarship received by the Designated Benefi ciary. 6. Recontributions. If you request a distribution to pay the Qualifi ed Higher Education Expenses of the Designated Benefi ciary and the Designated Benefi ciary receives a refund of any payment of Qualifi ed Higher Education Expenses from an Eligible Educational Institution, the amount withdrawn will not be includible in income to the extent it is recontributed to an Account for which the Designated Benefi ciary is the benefi ciary, but only to the extent such recontribution is made not later than 60 days after the date of such refund and does not exceed the refunded amount. You are responsible for identifying to the Program Manager any contribution to an Account that qualifi es for the treatment described in this paragraph and for certifying to the Program Manager that the conditions for such treatment have been satisfi ed. 7. Miscellaneous. None of the Board, the Trust, the Plan, or the Program Manager or its affiliates is responsible for payment of any Qualified Higher Education Expenses that exceed the current balance of an Account at the time a distribution is requested. ARTICLE IV AMENDMENT AND TERMINATION 1. General. The Account Owner or the Board may terminate an Account at any time. iv

46 2. Distribution of Remaining Account Balance. If the Account is terminated, the remaining Account balance will be distributed to the Account Owner and the Contributions and earnings thereon will be subject to federal and any applicable state income tax, the 10% additional federal tax and the recapture of all previous New Mexico tax deductions taken for Contributions related to Nonqualifi ed Withdrawals. Any such distribution shall be construed and administered to comply in all respects with any applicable state or federal statutes or regulations, including, but not limited to, Section 529 of the Code or its applicable regulations, Internal Revenue Service ( IRS ) guidance interpreting Section 529 of the Code, New Mexico law, or applicable rules promulgated by the Board. Any such distribution shall be issued in a lump sum net of any fees due to the Program Manager within 90 days from the date of the termination request. 3. Amendment or Termination by the Board. (a) If the Board or Program Manager fi nds that the Account Owner or a Designated Benefi ciary has provided false or misleading information to the Board or an Eligible Educational Institution with respect to an Account, the Board may terminate the Account and assess a penalty against the Account. If an Account is so terminated, the remaining Account balance will be distributed to the Account Owner and the Contributions and earnings thereon will be subject to federal and any applicable state income tax, the 10% additional federal tax and the recapture of all previous New Mexico tax deductions taken for Contributions related to Nonqualifi ed Withdrawals. (b) The Board may at any time: (i) amend the Plan or this Participation Agreement by giving written notice to the Account Owner, which amendment shall be effective upon the date specifi ed in the notice; or (ii) terminate the Plan or this Participation Agreement or cause a distribution to be made from an Account to satisfy applicable laws, including anti-money laundering laws, by giving the Account Owner written notice of any such termination. No provision of this Participation Agreement can be amended or waived except in writing signed by an authorized representative of the Board. A termination of the Plan or this Participation Agreement or such distribution from an Account by the Board may result in a Nonqualifi ed Withdrawal, unless certain exceptions apply, for which tax on the earnings portion thereof and penalties may be assessed. Nothing contained in the Participation Agreement or the Plan Description is an agreement or representation by the Board or any other person that it will continue to maintain the Trust indefi nitely. ARTICLE V CHANGE OF DESIGNATED BENEFICIARY, CHANGE OF ACCOUNT OWNER, ACCOUNT TRANSFERS AND ROLLOVERS 1. Change of Designated Beneficiary. At any time, the Account Owner may change the Designated Benefi ciary of an Account as provided in Article II, Section 5 of this Participation Agreement. 2. Change of Account Owner. All requests to transfer ownership of an Account must be submitted in writing and include: (i) the Account number; (ii) the guaranteed signature of the Account Owner; and (iii) such other information as the Board may require from time to time. An Account Owner may designate a Successor Account Owner who, subject to rules established by the Board and upon receipt of the proper documentation by the Program Manager, will become the Account Owner upon the death of the original Account Owner or if the original Account Owner validly disclaims his/her interest in the Account. A transfer of ownership of an Account to a new Account Owner may have legal, and income, gift, estate and GST tax implications. Please consult your tax advisor regarding this matter. 3. Account Transfers. (a) Section 529 of the Code provides that all or a portion of an account with a qualifi ed tuition program may be rolled over to an account with another qualifi ed tuition program in a different state, or before January 1, 2026 to a Qualifi ed ABLE Program without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. In order for the transfer of funds to be a qualifi ed rollover so as not to incur taxes and penalties, the funds from the fi rst account must be deposited into the new account within 60 days from the distribution from the fi rst account, and either (i) there must be a change of Designated Benefi ciary to a Member of the Family of the existing Designated Benefi ciary or (ii) the transfer must be to any qualifi ed tuition program for the same Designated Benefi ciary, and in the case of a qualifi ed tuition program, the transfer cannot occur within 12 months from the date of a previous transfer from another qualifi ed tuition program for that Designated Benefi ciary. In order to roll over an Account to another qualifi ed tuition program or a Qualifi ed ABLE Program, the Account Owner must complete and submit a Rollover/Change of Trustee Form. (b) In the event of a rollover request, the amount to be rolled over will be (i) the principal portion of all Contributions made, plus the investment gains on the Account, less (ii) investment losses on the Account, if any, withdrawals, if any, and any penalties, fees or charges as determined by the Board. Any rollovers to another state s Section 529 Plan, or a Qualifi ed ABLE Program including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualifi ed Withdrawal for federal tax purposes) will be subject to the recapture of previous New Mexico tax deductions taken for Contributions to the Account. (c) Any rollover shall be construed and administered to comply in all respects with any applicable state or federal statutes or regulations, including, but not limited to Section 529 of the Code or its applicable regulations, IRS guidance interpreting Section 529 of the Code, New Mexico law, and applicable rules promulgated by the Board. v

47 (d) As of the date of this Plan Description, the IRS has not issued regulations on the recent tax law changes. Therefore, the information presented is based on a good faith interpretation of the statutory language. Please consult with your tax advisor for more information. If, and when, material updates become available we will update the Plan s website and this Plan Description. 4. Miscellaneous. No interest in all or any portion of an Account may be used as security for any loan. Similarly, an Account Owner or Designated Benefi ciary may not borrow, assign or transfer any asset in an Account, except as provided in this Participation Agreement. Upon the death of an Account Owner, if a Successor Account Owner is duly appointed, the Account will be transferred to the Successor Account Owner as described in the Plan Description. If no Successor Account Owner is appointed, the deceased s estate will become the Account owner. ARTICLE VI FEES AND EXPENSES 1. General. Certain fees and expenses will be charged against the assets of the Portfolios to pay for the costs of managing and administering the Plan and the Accounts. These fees and expenses may be changed or waived, and the Board may add new fees or expenses at any time. 2. Daily Charges and Underlying Investment Fees and Expenses. Each Portfolio will be subject to a daily charge for certain ongoing Plan Fees (including the Program Management Fee and Board Administrative Fee), as described in the Plan Description. In addition, each of the Underlying Investments in which Portfolios invest has separate investment management fees and other expenses. Accounts will indirectly bear such Underlying Investment management fees and other expenses. 3. Transaction-based Fees. An Account may be subject to fees for certain transactions, charged in the amounts and as described in the Plan Description. 4. Other Fees and Expenses. An Account may be subject to other fees and expenses, including sales charges, as directed by the Board and as described in the Plan Description. ARTICLE VII GENERAL PROVISIONS 1. Necessity of Qualification. The Account Owner understands and acknowledges that the Plan intends to operate so as to qualify for favorable federal tax treatment under Section 529 of the Code. Because this qualification is vital to the Plan and the beneficial tax treatment of Account Owners and Designated Beneficiaries, the Board may amend the New Mexico 529 Program, the Plan and/or this Participation Agreement at any time if the Board decides that a change is needed to meet the requirements of Section 529 of the Code or its applicable regulations, IRS guidance interpreting Section 529 of the Code, New Mexico law, or applicable rules promulgated by the Board. The Board may modify this Participation Agreement to the extent necessary to assure compliance with applicable state or federal laws or regulations or to preserve the favorable tax treatment of the Plan or the favorable tax treatment of interests of Account Owners or Designated Beneficiaries therein. The Program Manager shall promptly notify the Account Owner of such amendments, and the Account Owner agrees to be bound thereby unless the Account Owner promptly notifies the Program Manager of the Account Owner s intent to terminate the Account. 2. Account Owner Representations. (a) The Account Owner acknowledges that: (i) the Account Owner has received and read the Plan Description prior to making each investment decision, (ii) the Account Owner agrees that the terms of the Plan Description are incorporated into this Participation Agreement as if they were set forth in this Participation Agreement, and (iii) the Plan s risks have been taken into consideration in making each investment decision. (b) The Account Owner acknowledges that he/she is opening the Account for the purpose of meeting the Qualifi ed Higher Education Expenses of the Designated Benefi ciary of the Account and he/she is not opening or using the Account for the purpose of evading federal or state taxes or tax penalties. (c) The Account Owner understands that: (i) the state(s) where he/she or his/her Designated Benefi ciary reside or pay taxes may offer one or more direct sold, advisor/broker sold or prepaid tuition plans under Section 529 of the Code (each, an In-State Plan ); and (ii) such In-State Plans may offer him/her state income tax or other benefi ts not available to him/her through the Plan. The Plan Description, this Participation Agreement and the other forms approved for use in connection with the Plan do not address taxes imposed by a state other than New Mexico, or the applicability of state or local taxes other than the New Mexico income tax to the Plan, the Trust, his/her participation in the Plan, his/her investment in the Trust or his/her Account. (d) The Account Owner has considered investing in an In-State Plan and consulted with his/her tax advisor regarding the state tax consequences of investing in the Plan, if realizing state or local income tax or other benefits are important to him/her. (e) The Account Owner has considered: (i) the availability of alternative education savings and investment programs including other Section 529 Plans available through the Program Distributor or otherwise; (ii) the Unit Classes offered by the Plan; (iii) the identity and contract term of the Program Manager; (iv) the impact an investment in the Plan may have on eligibility for federal and state fi nancial aid and non-educational benefi ts, such as Medicaid; (v) the risks and other considerations of investing in the Plan; (vi) limitations on Contributions, withdrawals and transfers among the Portfolios; (vii) the Plan s sales charges, fees and expenses; and (viii) the federal, state and local, income, estate, gift and GST tax implications of investing in the Plan. vi

48 (f) The Account Owner acknowledges that the intended tax advantages for the Account may be affected by future changes in tax laws, regulations or rules. (g) The Account Owner understands that a change in federal or state law or regulations governing the Plan, or court decisions, may have adverse tax and other consequences to the Account Owner. The Account Owner should consider the potential effect such a change in law could have on the Account Owner s investments under the Plan before establishing an Account. (h) The Account Owner understands that: (i) each of the Plan s Portfolios may not be suitable for him/her and/or the Designated Benefi ciary and (ii) the Plan may not be suitable for all investors as a means of investing for Qualifi ed Higher Education Expenses. In addition, the Account Owner understands that the Plan s Portfolios were designed for college savers (e.g., persons saving for undergraduate and graduate schools) and, therefore, the Account Owner must take into account his or her investment horizon before making contributions to the Plan for tuition expenses at K-12 Schools. (i) The Account Owner understands that the Account Owner will not receive any advice or opinion regarding the suitability of any Portfolio or Trust interests from the Board, Program Manager or Program Distributor or any representative of the Board, Program Manager or Program Distributor. (j) The Account Owner understands that: (i) any Portfolio may at any time be merged, terminated, reorganized or cease accepting new Contributions without consent or notice; (ii) any such action affecting a Portfolio may result in contributions being reinvested in a Portfolio different from the Portfolio in which contributions were originally invested; (iii) the Board and the Program Manager may at any time terminate or modify the Portfolio fee structures; and (iv) the Board may modify Underlying Investments at any time. (k) If the Account Owner is establishing an Account as a custodian for a minor under a state's Uniform Gifts to Minors Act or Uniform Transfers to Minors Act ("UGMA/UTMA"), the Account Owner understands and agrees that he/she assumes responsibility for any adverse consequences resulting from the establishment of the Account. (l) If a legal entity is establishing the Account, the individual executing the Participation Agreement represents that: (i) the entity is the Account Owner; (ii) the individual executing the Participation Agreement is duly authorized to act for the entity; (iii) the Plan Description may not discuss tax consequences and other aspects of the Plan of particular relevance to the entity and individuals having an interest therein; and (iv) the entity has consulted with and relied on a professional advisor, as deemed appropriate by the entity, before becoming an Account Owner. (m) The Account Owner acknowledges that OFI Private Investments Inc. will not necessarily continue as Program Manager for the entire period this Account is open and that the Board may in the future retain different investment manager(s) to manage all or part of the Plan whether or not OFI Private Investments Inc. is still the Program Manager. The Account Owner further acknowledges that there is no assurance that the terms and conditions of the current Participation Agreement would continue without material change, and that there are, accordingly, various potential consequences that the Account Owner acknowledges they should take into consideration including changes in the current management fee. (A successor Program Manager may request that a new Participation Agreement be executed.) (n) The Account Owner understands that in order to help the government fi ght the funding of terrorism and money laundering activities, federal law requires all fi nancial institutions to obtain, verify and record information that identifi es each person who opens an Account. When an Account Owner opens an Account, the Program Manager and/or the Board will ask for the Account Owner s name, address, date of birth, SSN, and other information that will allow the Program Manager and the Board to identify the Account Owner. The Program Manager or the Board may also ask to see the Account Owner s driver s license or other identifying documents. (o) The Account Owner has been given an opportunity, within a reasonable time prior to signing this Participation Agreement, to ask questions of representatives of the Board and the Program Manager and receive satisfactory answers concerning (i) an investment in the Plan, (ii) the terms and the conditions of the Plan and the Trust, (iii) the particular Investment Option(s) that may be selected, (iv) the Plan Description, this Participation Agreement, and the Enrollment Application, (v) other 529 Plans offered by the Board, and the investment options and costs associated with such plans, and (vi) his/her ability to obtain such additional information that may be necessary to verify the accuracy of any information furnished. (p) The Account Owner has not relied on any representations or other information, whether oral or written, and whether made by any agent or representative of the Board, the Program Manager, or otherwise, other than as set forth in the Plan Description (including any applicable supplement to the Plan Description) and in this Participation Agreement. (q) The Account Owner has accurately and truthfully completed the Enrollment Application. Any other documentation that he/ she has furnished or subsequently furnishes in connection with the opening or maintenance of, or any withdrawals from, his/her Account is or will be accurate, truthful, and complete, including the age indicated for the Designated Beneficiary. (r) The Account Owner acknowledges that his/her Account may be considered dormant if for a designated period of time there is no activity on the Account and the Plan is not able to make contact with the Account Owner. Dormant accounts are subject to states unclaimed property laws. 3. Separate Accounting. The New Mexico 529 Program shall provide a separate accounting for each Designated Benefi ciary. 4. Factual Determinations. All factual determinations regarding an Account Owner s or Designated Benefi ciary s residency, disability, the existence of hardship, and any other factual determinations regarding Accounts will be made by the Board based on the available facts and circumstances of each case. vii

49 5. Notices. All notices, changes, options and elections requested by an Account Owner must be in writing, signed by the Account Owner, and acceptable to the Program Manager. The Program Manager is not responsible for the accuracy of such documentation. 6. Governing Law. This Participation Agreement shall be construed in accordance with the laws of the State of New Mexico and applicable federal law, including Section 529 of the Code. Venue for any action between the Account Owner or the Designated Benefi ciary and the Board arising from or relating to the Plan, Accounts or the Participation Agreement shall be in a state or federal court located in Santa Fe, New Mexico. 7. Severability. In the event any clause or portion of this Participation Agreement is found to be invalid or unenforceable by a court of competent jurisdiction, that clause or portion shall be severed from this Participation Agreement and the remainder of this Participation Agreement shall continue in full force and effect as if such clause or portion had never been included. 8. Amendments. The Board may, at any time, and from time to time, amend this Participation Agreement, and the Account Owner shall be considered to have consented to such amendment, to the extent such amendment is for the purpose of assuring compliance with applicable state or federal laws or regulations or to preserve the continued favorable tax treatment of the New Mexico 529 Program, or the Plan Description, or suspend or terminate the Plan, the Trust or the New Mexico 529 Program, but your Account assets may not thereby be diverted from the exclusive benefi t of the Account Owner and/or the Designated Benefi ciary. 9. Reports and Statements. The Program Manager will send the Account Owner quarterly statements that show the value of each Account s activity during the previous quarter and cumulative activity for the year. An Account Owner has 60 days to notify the Program Manager of any errors on any Account confi rmation or on transactions indicated on each statement for the immediately previous calendar quarter. If the Account Owner does not write to the Program Manager to object to information relating to activity in the Account during the previous quarter as presented in such statement regarding the immediately prior quarter s activity within 60 days after the statement has been sent to the Account Owner, the Account Owner will be considered to have approved it and to have released the Board, the Program Manager and the Program Distributor from all responsibility for matters covered by the statements. If applicable, the Program Manager will provide tax reporting as required under the Act, the Code, and any applicable regulations. The Account Owner will continue to be responsible for fi ling his or her federal, state and local tax returns and any other reports required by law. 10. Extraordinary Events. The Board, the Trust, and the Program Manager shall not be liable for losses caused directly or indirectly by government restrictions, exchange or market rulings, suspension of trading, war, acts of terrorism, strikes or other conditions beyond their control. 11. Communications. For purposes of this Participation Agreement, communications will be sent to the Account Owner at the permanent address that is specifi ed in the Enrollment Application or at such other permanent address that the Account Owner gives to the Program Manager in writing. All communications so sent will be deemed to be given to the Account Owner personally upon such sending, whether or not the Account Owner actually receives them. Account Owners are responsible for alerting the Program Manager to any change of address. 12. Complete Agreement. This Participation Agreement, and the Plan Description that is hereby incorporated into this Participation Agreement, is the complete and exclusive statement of the agreement between the parties hereto, which supersedes any prior agreement, oral or written, and any other communications between the parties hereto relating to the subject matter of this Participation Agreement. This Participation Agreement is offered by the Board and will be deemed a binding agreement upon acceptance by the Trustee of the Account Owner s Enrollment Application. viii

50 Scholar's Edge Plan Description February 26, 2018 An Overview of Scholar s Edge This Plan Description contains a summary of the terms of Scholar s Edge (the Plan ) and the Participation Agreement. This Plan Description forms a part of, and is incorporated into, the Participation Agreement. This Plan Description includes the addenda and appendixes attached hereto. Please read this document and the Participation Agreement carefully before you invest or send funds. Additional copies of these materials may be obtained from Scholar s Edge at or by calling SAVE ( ). The Plan has been established and is maintained by The Education Trust Board of New Mexico ( Board or, when applicable, the Trustee ). OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the Program Manager of the Plan. OppenheimerFunds Distributor, Inc. is the sole distributor of the Plan. No dealer, financial advisor, Broker, salesperson or other person has been authorized to provide any information or to make any representations other than those contained in this Plan Description. If given or made, such other information or representations must not be relied upon. Statements contained in this Plan Description or in the Participation Agreement, which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of facts. The information and expressions of opinion herein are subject to change without notice. Neither delivery of this Plan Description or the rest of the Participation Agreement, nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of Scholar s Edge or The Education Plan Trust of New Mexico ( Trust ) since the date of this Plan Description. The consequences to an Account Owner or Designated Beneficiary of an investment in the Plan vary depending on their state of residence. An Account Owner should consider, before investing, whether the Account Owner's or the Designated Beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in the home state's qualified tuition program. Any state-based benefit offered with respect to a particular Section 529 Plan should be one of the many appropriately weighted factors to be considered in making an investment decision. An investor should consult with his or her financial, tax or other adviser to learn more about how state based benefits (including any limitations) would apply to his or her specific circumstances and may also wish to contact his or her home state or any other Section 529 Plan to learn more about the features, benefits and limitations of that state s Section 529 Plan. Plan Accounts are not bank deposits, are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Association, are not debt or obligations of, or guaranteed by, any bank or other fi nancial institution or the Plan, The Education Trust Board of New Mexico or its members, The Education Plan Trust of New Mexico, the State of New Mexico, OFI Private Investments Inc., OppenheimerFunds Distributor, Inc. or any fi nancial advisor. Investment in the Plan involves investment risk, including the possible loss of the principal amount invested. The Plan is intended to be used only to save for Qualified Higher Education Expenses at Eligible Educational Institutions. The Plan is not intended to be used, nor should it be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. A taxpayer should seek tax advice based on the taxpayer s particular circumstances from an independent, qualified tax advisor. Account owners should periodically assess, and if appropriate, adjust their investment choices with their time horizon, risk tolerance and investment objectives in mind. FOR USE BY CUSTOMERS ENROLLING THROUGH A FINANCIAL ADVISOR. 1