CESA, formerly known as an Education IRA, is a federally-sponsored, tax-advantaged trust or custodial account that allows families to increase their investment earnings through tax-deferral as long as the funds are later used for educational purposes. Parents, grandparents, other relatives, even friends can contribute to the account. You can use funds from your CESA accounts to pay for your children to attend an Islamic school.
Withdrawals can alse be used to pay for qualified education expenses at virtually all accredited institutions, including elementary and secondary schools whether public, private or religious, as well as any college, university, vocational school, or other postsecondary educational institutions eligible to particpate in a student aid program administered by the Department of Education.
Generally, qualified education expenses include:
We are providing this as general information, please see the most up to date IRS Guidelines. There are federal tax and additional 10% penalties on withdrawals used for non-qualifying expenses.
Coverdell ESA is only available to families below a specified income level.
Section 529 plans are state sponsored and have no age or income restrictions. These plans are also open to non-residents of the offering state. Like Coverdell Education Savings Accounts (CESA), they also offer tax-free growth on your investment and tax-free withdrawals for qualifying education expenses. If used on non-qualifying purchases, there will be federal tax penalty of 10%.
Unlike the 529, a CESA allows you to use halal investment vehicles and is fairly easy to set up. Iman Fund offers halal CESA investment options and can help you set up CESAs for your children.
Please call us at (877) 417-6161 to talk to a specialist about the next steps.
The Fund invests in foreign securities, which involve greater volatility and political, economic, and currency risks and differences in accounting methods. It is possible that the Islamic Shari’ah restrictions placed on investments and reflected in the main investment strategies may result in the Fund not performing as well as mutual funds not subject to such restrictions.
Past performance is not indicative of future results.
Diversification does not assure a profit or protect against a loss in a declining market.
The Fund is not available for sale to investors residing outside the United States.
The prospectus contains more complete information, including risks, fees, and expenses related to an ongoing investment in the Fund. You may also receive the prospectus or summary prospectus by calling (877) 417-6161. Please read the prospectus carefully before you invest or send money.
While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for further details.
Allied Asset Advisors, LLC, an SEC registered investment advisor, is advisor to Iman Fund.
Iman Fund is distributed by Quasar Distributors, LLC.
The Iman FundAllied Asset Advisors, Inc.8925 S. Kostner AvenueHometown, IL 60456
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Call: (877) 417-6161 Office: (630) 789-0453 Fax: (630) 789-9455