1 Assumes a 25% ordinary income tax assessed yearly on taxable investments and 15% at period end on tax-deferred investments with non-qualified money. All figures were rounded to the nearest dollar amount. Actual tax rates may vary for different taxpayers and assets (e.g., capital gains and qualified dividend income) from that demonstrated. Actual performance of your investment will also vary. Hypothetical returns are not guaranteed and do not represent performance of any particular investment. If a withdrawal or distribution is taken before age 59 ½, a 10% federal tax penalty may apply. Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the investments shown. Consider your personal investment horizon and income tax brackets, both current and anticipated, when making an investment decision.