This hypothetical example is used for comparison purposes and is not intended to represent the past or future performance of any investment. No withdrawals were made during the period indicated. Actual returns will fluctuate. Taxable account assumes earnings are taxed as ordinary income. Lower maximum rates on capital gains and dividends would make the taxable accounts returns more favorable when compared with the tax-deferred account. The types of securities and strategies illustrated may not be suitable for everyone. Some investments that are free of federal income taxes may be subject to state and local taxes. Also, the alternative minimum tax may apply. Fees and other expenses were not considered in the illustration. Withdrawals from a tax-deferred program are subject to ordinary income taxes. If a withdrawal is taken before age 59½, a 10% federal tax penalty may apply. Individuals should consider their time frame and income tax brackets when evaluating a financial instrument.