MTB Tax-Free Mutual Funds

A MTB tax-free municipal bond fund or money market fund can be an attractive way to earn monthly or quarterly income free of both federal regular and state income tax.* These funds invest in high quality bonds, notes and commercial paper, specific to state issuers.

As you can see by this example, their double tax-free yields (free from federal and state income tax) can take your money as far or farther than many taxable investments.

Here is an example of a tax-free yield and the taxable-equivalent yield at a hypothetical combined federal and state tax bracket of 37.80%. That 3.00% tax-exempt investment is earning as much as a 4.82% taxable fund investment on an after-tax basis!

Yields quoted are for illustrative purposes only and are not indicative of past or future fund performance. The maximum marginal tax rate was used in calculating the taxable yield equivalent. Furthermore, additional state and local taxes paid on comparable taxable investments were not used to increase federal deductions.

MTB Tax-Free Bond Funds

• Designed for tax-sensitive Pennsylvania, Maryland and New York residents.
• Opportunities for income free of both federal regular and state income tax.

MTB Pennsylvania Municipal Bond Fund
Pursuing double tax-free income for Pennsylvania residents.

MTB Maryland Municipal Bond Fund
Pursuing double tax-free income for Maryland residents.

MTB New York Municipal Bond Fund
Pursuing double tax-free income for New York residents.

MTB Tax-Free Money Market Funds

• Choices to keep your cash accessible, while seeking stability, with an opportunity to earn daily income.**
• Designed as a short-term parking place for cash-and not as a long-term investment for aggressive financial goals.

MTB Pennsylvania Tax-Fee Money Market Fund
Pursuing double tax-free yields for Pennsylvania residents.

MTB New York Tax-Free Money Market Fund
Pursuing double tax-free yields for New York residents.

MTB Tax-Free Money Market Fund
Pursuing tax-free yields for tax-sensitive investors.

* Income may be subject to the federal alternative minimum tax.

** An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

Tax-Advantaged Accounts for Education Expenses

The Coverdell Education Savings Account

Formerly known as the Education IRA, a Coverdell Education Savings Account is an investment account you establish on behalf of a child for a wide range of qualified educational expenses, such as expenses for college, or public or private elementary or secondary schools.*

It's a useful way to accumulate money for a child's college education over time, because the profits you earn are exempt from income and capital gains tax-as long as you use them for qualified education expenses.

*Your income level determines whether you may fund a Coverdell Education Savings Account.

529 College Savings Plans

A 529 plan is a flexible college investment program sponsored and administered by an individual state. Most states contract with one or more financial institutions to handle investment management and administrative aspects of their 529 plans. The investment options typically are mutual fund portfolios.

Withdrawals are federally tax free (and state tax free in most cases) as long as they are used to finance qualified expenses at any accredited U.S. public or private college or university.* (Expenses for elementary and secondary schools are not covered.) Nonqualified withdrawals are subject to ordinary income taxes and a 10% penalty tax. Eligibility to contribute to a 529 plan is generally not restricted by income. 529 plans generally have no age limits for beneficiaries.

* Withdrawals used for expenses other than qualified education expenditures may be subject to a 10% penalty tax, as well as federal and state income taxes. Federal tax-free status is scheduled to expire in 2011 unless extended by Congress.