Custodial accounts conform to your state's Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) and provide a tax-advantaged vehicle to save for a child's educational and other needs.

How Do They Work?
As the custodian, you make an irrevocable gift to the account for a minor child and invest the money in any of the Thrivent Mutual Funds. You are responsible for overseeing the investment until the child reaches the "turnover" age (usually 18, 21 or 25; varies by state). At that time, the child is entitled to the money in the account without restriction. Before that time, withdrawals can be made as long as they are used for the child's benefit.

What Are the Benefits?

• Tax savings. In general, the first $850¹ of income earned in all custodial accounts combined is entirely tax-free. Depending on the child's age, additional income may be taxed at the child's or custodian's tax rate. Federal law permits each adult to make a gift of up to $12,000 ² per child each year, before incurring any gift tax. For example, parents can give a total gift of $24,000 to each minor child ($12,000 per parent) without paying any gift taxes.
• Convenience. You can open a custodial account for any child at any time. The child doesn't have to be a relative. The only requirements are that the child is a minor, he or she must have a Social Security number, and there is only one custodian per account.
• Flexibility. You may invest as much or as little in a custodial account as you want, and add to the account as often as you like.
• Affordability. There are two affordable options for custodial accounts in mutual funds:
  1) open an account with a lump sum investment of as little as $1,000, or
  2) set up an automatic investment plan (AIP)³ for as little as $50/month .

Your Thrivent Financial representative can provide you with more detailed information about UGMA-UTMA accounts and how they may fit into your education funding plan.

¹ For 2006. This amount is adjusted annually for inflation.
² This amount is indexed for inflation and may be increased by increments of $1,000.
³ This type of continuous investment plan does not assure a profit or protect against loss in declining markets.