| 1 EO /14 Not FDIC Insured May Lose Value No Bank Guarantee

| 2 EO /14 Topics for today The current tax landscape A longer-term outlook on taxes Planning considerations

| 3 EO /14 The current tax landscape

| 4 EO /14 It’s important to determine your tax bracket SingleMarried filing jointlyIncome Capital gains and dividends $0–$9,225$0–$18,45010%0% $9,226–$37,450$18,451–$74, $37,451–$90,750$74,901–$151, $90,751–$189,300$151,201–$230, $189,301–$411,500$230,451–$411, $411,501–$413,200$411,501–$464, Over $413,200Over $464, %20% 2015 IRS tax brackets and rates.

| 5 EO /14 Income phaseouts can increase your tax bill Income phase-outs based on 2015 IRS figures. Above higher income levels ($258,250 for individuals, $309,900 for couples), the benefit from itemized deductions and personal exemptions is limited Itemized deductions Reduced by 3% of the amount above the income threshold (maximum of 80% phaseout) Personal exemptions Reduced by 2% for every $2,500 of income above the threshold.

| 6 EO /14 New health-care taxes took effect in 2013 Affects taxpayers with more than $200,000 in income ($250,000 for couples) Increase in the individual portion of the Medicare payroll tax on wages from 1.45% to 2.35% New Medicare net investment income surtax of 3.8% – Interest, dividends, capital gains, rental income, passive business income all subject to the new tax – Interest from municipal bonds and distributions from retirement accounts are excluded The threshold for the 3.8% net investment income surtax is based on modified adjusted gross income (MAGI), defined as adjusted gross income plus net foreign income exclusion amount. The extra.9% Medicare payroll tax is based on earned income only (salary, wages, etc.).

| 7 EO /14 $50K Muni income Married couple with income over $250K: How does the new 3.8% surtax work? $150K Salary $50K IRA income $100K Cap gain Not subject to 3.8% surtax $250K income threshold (MAGI) $50K cap gain subject to surtax $50K cap gain not subject to surtax Simplified, hypothetical example designed to illustrate how the new Medicare net investment income surtax is applied. Beginning in 2013, the surtax applies to individuals with MAGI over $200,000 and married couples filing joint tax returns with MAGI over $250,000. MAGI defined as Adjusted Gross Income (AGI) plus net foreign income exclusion amount. Not subject to the surtax but is included in determining the $200K/$250K income threshold

| 8 EO /14 Key income thresholds to consider IndividualsCouples $200K $258K Highest income, capital gain, and dividend rates $250K $309K New health-care taxes Phaseout of deductions and exemptions $413K$464K

| 9 EO /14 Will you owe AMT? Income levelChance of owing AMT $100K–$200K2% $200K–$500K48 $500K–$1M78 > $1M36 Urban-Brookings Tax Policy Center, September 2012.

| 10 EO /14 Understanding the AMT What is the alternative minimum tax (AMT)? A separate, parallel income tax system introduced in 1969 to make sure a small number of very wealth taxpayers owed tax How many taxpayers are subject to AMT? Since the system was not properly indexed for inflation, more than 4 million taxpayers pay AMT now* How many AMT tax brackets are there? Just two — 26% on first $185,400 of AMT income, 28% thereafter What are some popular tax breaks disallowed for AMT? Personal exemptions, standard deduction, state and local income and property taxes, miscellaneous 2% deductions, interest on second mortgages *Urban-Brookings Tax Policy Center, August 2013.

| 11 EO /14 Federal estate and gift taxes — key figures 18% to 40%Range of marginal tax rates on estates and gifts in excess of lifetime exemption amount $5.43 millionLifetime gift and estate tax exemption $14,000Annual gifts to as many recipients without resulting in a taxable gift and reducing the lifetime exemption amount

| 12 EO /14 Estate planning is more than just the taxes Wills, beneficiary designations Critical to review and update periodically Revocable living trustTransfers property outside of the probate system Health-care proxy and advanced medical directive Facilitate decisions around medical treatment or end-of life wishes Power of attorneyAssigns decision-making responsibilities in case of unforeseen circumstances GuardianshipPlanning for minors or other extended family members

| 13 EO /14 Longer-term outlook on taxes

| 14 EO /14 Total debt remains high based on historical norms Source: Congressional Budget Office, Updated Budget Projections: August 2014; does not include intra-governmental debt. Percentage of GDP Federal debt held by the public (% of GDP), 1940–

| 15 EO /14 Annual deficits have improved but will worsen in a few years Source: Congressional Budget Office, Updated Budget Projections: August Percentage of GDP Historical federal government revenues and outlays (% of GDP), 1973– Spending 21.8% Revenue 18.2% 2014 (%) Projected

| 16 EO /14 65% U.S. federal government spending by type, 2014FY Source: Congressional Budget Office, August 2014; Mandatory spending types primarily include Social Security, Medicare, and Medicaid, as well as interest on existing debt. Discretionary spending includes defense and non-defense items. “Other” mandatory items include certain veteran’s benefits, retirement benefits for federal employees, Supplemental Nutrition Assistance Program (SNAP), unemployment, and other government benefits less offsetting receipts. Most government spending is on auto-pilot Mandatory Social Security $792B Defense $626B 35% Discretionary Non-Defense $576B Medicare $492B Medicaid $274B Interest $221B Other $472B

| 17 EO /14 What would a longer-term debt solution look like? Tax reform to simplify the system – Less brackets and lower marginal tax rates, elimination or significant reduction in tax preference items (popular deductions, tax credits, etc.) Steps to improve the solvency of major entitlement programs Potential changes to Social Security – Increase the wage base* – Increase the retirement age for younger workers – Utilize a different COLA formula for benefit increases – Reduce benefits for higher-income recipients (i.e., means testing) *Social Security wage base for 2015 is $118,500.

| 18 EO /14 Planning considerations and strategies

| 19 EO /14 Five income tax planning strategies to consider 1.Invest in municipal bonds to generate tax-free income – Municipal bonds are more attractive for taxpayers in high tax brackets and also subject to the 3.8% Medicare surtax 2.Utilize strategies to reduce or avoid taxable income – Retirement plan contributions, college savings plans, flexible spending accounts (FSAs), deferred compensation, maximizing tax deductions – Be mindful of transactions that may drastically increase income

| 20 EO /14 Five income tax planning strategies to consider 3.Consider Roth strategies – Contributions or conversions to create a source of tax-free income in retirement 4.Asset “location” – allocate investments by tax status – Hold a larger percentage of fixed-income assets within tax-deferred accounts while owning equities in taxable accounts to benefit from lower capital gains and dividend tax rates 5.Make tax-smart withdrawals in retirement – Draw from tax-deferred accounts while in lower tax brackets, and from taxable and tax-free accounts when tax bracket is higher

| 21 EO /14 Estate planning — Are federal estate taxes a concern? Make sure fundamental documents are in place Plan for state death or inheritance taxes if necessary $5.43M exemption amount Gifting strategies to reduce estate Life insurance to provide liquidity at death to pay taxes Charitable planning Advanced strategies such as FLPs to transfer illiquid assets

| 22 EO /14 Closing thoughts With mounting federal deficits and pressures around entitlement programs, there’s likely to be uncertainty around taxes Work with professionals to assess your personal income and estate tax situation and identify potential strategies

| 23 EO /14 | 23 A BALANCED APPROACH A WORLD OF INVESTING A COMMITMENT TO EXCELLENCE

| 24 EO /14 This information is not meant as tax or legal advice. Please consult your legal or tax advisor before making any decisions. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at Please read the prospectus carefully before investing. Putnam Retail Management putnam.com

| 25 EO /14