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261 Hamilton AvenuePalo Alto, California 94301Wealthfront 529 College Savings PlanPlan Description and Participation Agreementwww.wealthfront.com/collegeAugust 15, 2021Administered byNevada State TreasurerInvestment Products Offered Are Not FDIC Insured May Lose Value Are Not Guaranteed1
Read this Plan Description carefully before you invest or send money.This Plan Description contains important information concerning the following topics:(i) fees and costs (See “FEES AND EXPENSES”);(ii) investments and how and when the Board may change these (See “PLANRISKS AND DESIGNATED AND INDIVIDUAL PORTFOLIO RISKS – PotentialChanges to the Plan”);(iii) portfolio investment performance (See “APPENDIX A: Historical InvestmentPerformance”);(iv) federal and state tax considerations (See “FEDERAL AND STATE TAXTREATMENT”);(v) risk factors (See “PLAN RISKS AND DESIGNATED AND INDIVIDUALPORTFOLIO RISKS”); and(vi) limitations or penalties imposed by the Plan upon transfers between investmentoptions, transfers to other Nevada sponsored plans, transfers to other Section 529Plans or non-qualified distributions generally (See “FEDERAL AND STATE TAXTREATMENT”).i
Table of ContentsPLAN HIGHLIGHTS.4KEY TERMS.7IMPORTANT NOTICES . 12INTRODUCTION . 14APPLICATION PROCESS . 15General. 15Account Application . 15Personal Information. 16Restrictions for Certain Accounts with Non-U.S. Addresses . 16Ownership Transfers . 16Designation of Successor Account Owner . 17No Assignments or Pledges . 17Account Restrictions . 18CONTRIBUTIONS . 19Electronic Funds Transfer . 19Checks. 19Recurring Contributions. 20Rollover Contributions and Other Transfers . 20Rollovers . 20Plan Transfers for the Account of a New Beneficiary . 21Plan Transfers for the Same Beneficiary . 21Transfer into a Plan Account from Another Plan Within the Trust for the Benefit of a New Beneficiary . 21Transfer into a Plan Account from Another Plan Within the Trust for the Benefit of a Same Beneficiary . 21Re-contribution of Refunds from Eligible Educational Institutions . 22Maximum Contribution Limit. 22Excess Contributions . 22Contribution Policies and Fees . 23Control Over the Account . 23Pricing of Designated Portfolio Units . 23COMMUNICATIONS AND STATEMENTS . 25WITHDRAWALS . 26Procedures for Withdrawals . 26Qualified Withdrawals . 26Qualified Education Expenses . 26Eligible Educational Institution . 27Refunds . 27Non-Qualified Withdrawals . 27Other Withdrawals . 27Residual Account Balances. 29529 Plans Generally . 31Important Tax Consideration . 31529 Plan Contributions and Withdrawals . 31Other Contributions and Transfers . 32Coordination with Other Education Expense Benefit Programs . 32Education Credits. 32Federal Gift and Estate Taxes . 32State Taxes . 33INVESTMENTS . 35FEES AND EXPENSES . 37Wealthfront Advisory Fee. 37Annual Asset-Based and Total Fees for Designated Portfolios . 37Certain Transaction Fees. 43PLAN RISKS AND DESIGNATED AND INDIVIDUAL PORTFOLIO RISKS . 44Wealthfront Advisory Risk . 44ii
Table of ContentsRisks of Investing in the Plan . 44No Guarantee of Principal or Earnings; No Insurance . 44Limited Investment Direction . 45Liquidity . 45Market Uncertainties and Other Events . 45Potential Changes to the Plan . 45Status of Federal and State Law and Regulations Governing the Plan . 46No Indemnification . 46Eligibility for Financial Aid . 46No Guarantee That Investments Will Cover Qualified Education Expenses; Inflation and Qualified EducationExpenses . 47Education Savings and Investment Alternatives . 47No Guarantee of Admittance . 47Medicaid and Other Federal and State Benefits . 47Suitability and Education Savings Alternatives . 47Differences Between Performances of Designated Portfolios and Underlying ETFs . 48Differences Between Performances of Individual Portfolios and Designated Portfolios. 48Designated Portfolio Investment Risk . 48Individual Portfolio Investment Risk . 48Cybersecurity Risk . 48OTHER INFORMATION . 50Arbitration. 50Electronic Communications and Disclosure Relating to Internet Access . 50Continuing Disclosure . 51Creditor Protection Under U.S. and Nevada Law . 51Independent Registered Public Accounting Firm . 52Custodial Arrangements. 52Tax Reporting . 52Conflicts . 52Contact Information . 52Privacy Statements . 52Investment Risk; No Guarantee . 53Tax Considerations . 54Individual Advice . 54Plan Description Information . 54Representations . 54APPENDIX A: INVESTMENTS .1Investments . 1Historical Investment Performance .8Profiles of Underlying ETFs .9APPENDIX B: WEALTHFRONT 529 COLLEGE SAVINGS PLAN PARTICIPATION AGREEMENT .1iii
Plan HighlightsPLAN HIGHLIGHTS: The informationshown in the Plan Highlights is only asummary of the Plan. More detailedinformation about the Plan is described inthe pages that follow. Please read this entirePlan Description before investing.Capitalized terms that are not otherwisedefined have the meanings set forth in“KEY TERMS” below.investment adviser, serves as the investmentadviser to the Plan. Wealthfront BrokerageLLC serves as the distributor and theunderwriter of the Plan. WealthfrontBrokerage also provides certain marketingservices for the Plan pursuant to anOperating Agreement that expires in 2021and which can be extended until 2026.Wealthfront constructs your IndividualPortfolio: Wealthfront serves as yourautomated investment adviser. Under thePlan, Wealthfront constructs an IndividualPortfolio for you using Designated PortfolioUnits from up to nine Designated Portfolios,each of which contains a single underlyingETF. Wealthfront designs your IndividualPortfolio to provide a diversified assetallocation based on your individual risktolerance as reflected by your Risk Score,which is determined by your responses to aRisk Questionnaire. Using your Risk Score,Wealthfront assigns your IndividualPortfolio to one of 20 Glide Paths, each ofwhich determines how your IndividualPortfolio’s allocations of DesignatedPortfolios will change over time. Each GlidePath gradually shifts the asset allocations ofthe Designated Portfolios in your IndividualPortfolio to progressively decreasing levelsof expected risk as your Beneficiary’sExpected Matriculation Date approaches.Your starting point along the specific GlidePath is determined by the Beneficiary’sExpected Matriculation Date. (See“INVESTMENTS.”)Before you make contributions to the Plan,please read and understand this PlanDescription and the Participation Agreementattached hereto as APPENDIX B. Pleasekeep both this Plan Description and theParticipation Agreement for futurereference. These documents together giveyou important information about the Plan,including information about the investmentrisks associated with, and the terms underwhich you agree to participate in the Plan.Purpose of the Wealthfront 529 CollegeSavings Plan: To help individuals andfamilies save for Qualified EducationExpenses through a tax-advantagedinvestment plan sponsored by the State ofNevada. The Wealthfront 529 CollegeSavings Plan is established under Section529 of the Code. The Plan is open toresidents of any state.Who’s who in the Wealthfront 529College Savings Plan: The State of Nevadasponsors the Plan, which is offered by theTrust. The Trust is overseen by the Board,and administered by the Nevada StateTreasurer. ACSR serves as the ProgramManager and, together with its affiliates, hasoverall responsibility for the day-to-dayoperations of the Plan and providesadministration and recordkeeping servicesfor the Plan. The Direct ProgramManagement Agreement between ACSRand the Board expires in 2032. WealthfrontAdvisers LLC, an SEC-registeredIndividual Advice: No investmentrecommendation or advice received by theAccount Owner from Wealthfront or anyother person is provided by, or on behalf of,the State of Nevada, the Board, the Plan, orACSR or any of its affiliates.Differences between the Wealthfront 529College Savings Plan and other 529 plans:4
Plan HighlightsUnlike many other 529 Plans, your assetsare not managed in a commingled fundstructure. In a commingled fund structure,you buy a single fund. In this Plan, eachIndividual Portfolio is managed separately,and will be allocated to up to nineDesignated Portfolios as prescribed by yourRisk Score and your Beneficiary’s ExpectedMatriculation Date.United States or abroad. For a list of eligibleschools, please visit www.fafsa.ed.gov.Qualified Withdrawals: The earningsportion of qualified withdrawals are federalincome tax free if used to pay for QualifiedEducation Expenses, including: tuition, fees,and the costs of textbooks, supplies, andequipment required for the enrollment orattendance of a Beneficiary at an EligibleEducational Institution; certain costs ofroom and board of a Beneficiary for anyacademic period during which theBeneficiary is enrolled at least half‐time atan Eligible Educational Institution; expensesfor “special needs” services needed by aspecial needs Beneficiary which must beincurred in connection with theBeneficiary’s enrollment or attendance at anEligible Educational Institution; expensesfor the purchase of computer or peripheralequipment (as defined in section168(i)(2)(B) of the Code), computersoftware (as defined in section 197(e)(3)(B)of the Code), or Internet access and relatedservices, if the equipment, software, orservices are to be used primarily by theBeneficiary during any of the years theBeneficiary is enrolled at an EligibleEducational Institution; K-12 Tuition;Apprenticeship Program Expenses; andEducation Loan Repayments. (See“FEDERAL AND STATE TAXTREATMENT.”)Contribution limits: The minimum initialcontribution is 500. Subsequentcontributions must be at least 100. Thecurrent maximum contribution limit for allPlan Accounts for the same beneficiaryunder all 529 savings plans sponsored by theState of Nevada is 500,000. Although youcan no longer contribute to an Account oncethis limit is reached, the Account maycontinue to grow through investmentreturns.Residency Requirements: You do not haveto be a resident of Nevada. You must simplybe a U.S. citizen or resident alien.Beneficiary Age Limits: None – YourBeneficiary may be of any age, fromnewborn to adult.Tax Advantages: In general, 529 collegesavings plans provide for federal taxdeferred growth of investments; no federalincome tax on qualified withdrawals; and nogift tax on contributions up to 75,000( 150,000 for spouses electing to split gifts)pro-rated over five years and contributionsare considered to be completed gifts forfederal gift and estate tax purposes. Thereare no annual adjusted gross income limits.This Plan Description does not contain legalor tax advice. You should consult your owntax advisor for more information.If your Beneficiary decides not to go tocollege: You may change your Beneficiaryto a new Beneficiary who is a Member ofthe Family of the original Beneficiary, andthat transfer will not be subject to federalincome tax or penalty. You also may makewithdrawals from the Account or close theAccount by notifying Wealthfront. Any nonqualified withdrawals will be subject tofederal and state taxes as well as a 10%federal tax penalty on earnings.School Eligibility: Investments may be usedat any eligible post-secondary school in the5
Plan Highlightsshould weigh such risks with theunderstanding that they could arise at anytime during the life of your Account. (See“PLAN RISKS AND PORTFOLIO RISKS.”)Fees and Expenses: The estimatedannualized Total Fee (including UnderlyingETF Expense Ratio, Ascensus ProgramManagement Fee, Wealthfront Advisory Feeand Board Fee) ranges from 0.34% to 0.70%of the assets in your Account depending onthe asset allocation across the DesignatedPortfolios in your Individual Portfolio. (See“FEES AND EXPENSES.”)No Guarantee: When you contribute to thePlan, your money will be invested inDesignated Portfolio Units. An investmentin the Plan is not a bank deposit. None ofyour Account, the principal you invest,nor any investment return is insured orguaranteed by any Plan Official, thefederal government, the Federal DepositInsurance Corporation (“FDIC”), or anyother governmental agency. Investmentreturns will vary depending upon theperformance of the Designated Portfolios inyour Account. You could lose all or aportion of your investment.Investments: The investments in the Planconsist of nine Designated Portfolios, eachof which contains one low-cost liquid ETF.Each Designated Portfolio is divided intoDesignated Portfolio Units, whichWealthfront uses as building blocks toconstruct Individual Portfolios based onyour individual Risk Score. TheseDesignated Portfolio Units are “municipalfund securities” issued by the Trust. Theunderlying ETF contained within each of theDesignated Portfolios is an exchange-tradedinvestment product registered with the SECunder the Investment Company Act of 1940.(See “INVESTMENTS” and “APPENDIX A- Investments.”)Account Applications and AccountInformation: You must complete anapplication online atwww.wealthfront.com/529. AccountOwners will receive periodic Accountstatements and all other correspondenceentirely online.Plan and Portfolio Risks: You and yourBeneficiary do not have access or rights toany assets of the State of Nevada or anyassets of the Trust other than the assetscredited to your Account for thatBeneficiary. The Plan is an investmentvehicle. Accounts in the Plan are subject tocertain risks including: (i) the possibility thatyou may lose money over short or even longperiods of time; (ii) the risk of changes inapplicable federal and state tax laws andregulations; (iii) the risk of Plan changesincluding changes in fees and expenses; and(iv) the risk that contributions to the Planmay adversely affect the eligibility of theBeneficiary or you for financial aid or otherbenefits. Some Designated Portfolios carrymore and/or different risks than others. YouContact Information:support@wealthfront.com or 844-995-8437Interests in the Plan are municipal fundsecurities issued by the Trust overseen bythe Board, and administered by theNevada State Treasurer. The Plan, whichis within the Trust, is administered by theBoard and managed by the ProgramManager. Interests in the Trust are soldexclusively by WB. Trust Interests (alsoknown as Designated Portfolio Units)have not been registered with theSecurities and Exchange Commission orany other state or federal governmentalagency.6
Key TermsLabor under section 1 of the NationalApprenticeship Act (29 U.S.C. 50).KEY TERMSTerms used in this Plan Descriptiondocument have the following meanings:Ascensus: Ascensus is used to refercollectively or individually, as the caserequires, to AIA and ACSR.529 Plan: A qualified tuition programestablished under and operated inaccordance with Section 529 of the Code.Ascensus Program Management Fee: An0.05% annualized fee based on the netmarket value of the Account charged byACSR for its program management services.Account: An Account established in thePlan by you as the Account Owner.Asset-Based Fee: The sum of theUnderlying ETF Fees, the AscensusProgram Management Fee and the BoardFee.Account Application: An onlineapplication to be completed by you as theAccount Owner to open an Account. Bycompleting and submitting the AccountApplication, you agree to be bound by theterms and conditions of the ParticipationAgreement.BlackRock: BlackRock Fund Advisors.Beneficiary: The individual designated bythe Account Owner as the beneficiary of theAccount at the time the Account isestablished or the individual who isdesignated as the new Beneficiary when theBeneficiary of an Account is changed.Account Owner: The person or entity thatestablishes an Account and controls theassets held in the Account on behalf of aBeneficiary or any person or entity whobecomes the successor in interest to suchperson or entity in accordance with the Actand Program Regulations. A non-entityAccount Owner must be a natural person oflegal age who is either a U.S. citizen orresident alien and has a valid Social Securitynumber (or taxpayer identification number)with the authority to open an individualAccount. An Account Owner is aninvestment advisory client of Wealthfront.Board: The Board of Trustees of theCollege Savings Plans of Nevadaadministers the Trust in conjunction with theNevada State Treasurer.Board Fee: A fee charged to eachDesignated Portfolio by the Board to pay forexpenses related to oversight andadministration of the Trust. If assets in thePlan are 5 billion or less, each DesignatedPortfolio will bear an annualized fee of0.01% based on the assets in suchDesignated Portfolio that is used to pay theBoard Fee. However, if assets in the Planare less than 1 billion, the Board Fee willbe an annual fixed fee equal to 100,000 andWealthfront (not you as the Account Ownerthrough your investment in a DesignatedPortfolio) will directly pay the portion of theBoard Fee equal to the difference betweenthe 0.01% annualized fee for all DesignatedPortfolios and the annual fixed fee of 100,000. If assets in the Plan are greaterthan 5 billion, the annualized fee borne byACSR: Ascensus College SavingsRecordkeeping Services, LLC, the ProgramManager of the Plan.Act: Chapter 353B of the Nevada RevisedStatutes, as amended.AIA: Ascensus Investment Advisors, LLC,an affiliate of ACSR.Apprenticeship Program Expenses:Expenses for fees, books, supplies, andequipment required for the participation of aBeneficiary in an apprenticeship programregistered and certified with the Secretary of7
Key Termsthe American opportunity tax credit(AOTC) and the lifetime learningcredit (LLC). If you have further questionsaround the use of these credits, along witheligibility, please speak with a taxprofessional.each Designated Portfolio will be reducedbelow 0.01% based on the assets in suchDesignated Portfolio such that the entireamount of the fees for all DesignatedPortfolios equals a fixed annual fee of 500,000, which is paid to the Board as theBoard Fee.Education Loan Repayment: Amountspaid as principal or interest on a loan to paycertain higher education expenses as definedin Section 221(d) of the Code, of aBeneficiary or a sibling of a Beneficiary (upto a lifetime 10,000 limit per individual).For this specific purpose, a sibling is definedas a brother, sister, stepbrother, or stepsister,as described in section 152(d)(2)(B) of theCode and includes half-brothers and halfsisters, a legally adopted child or childplaced for legal adoption. You ca
which you agree to participate in the Plan. Purpose of the Wealthfront 529 College Savings Plan: To help individuals and families save for Qualified Education Expenses through a tax-advantaged investment plan sponsored by the State of Nevada. The Wealthfront 529 College Savings Plan is established under Section 529 of the Code. The Plan is open to
