1. | 1 EO032 290287 8/14 Shifting into retirement Turning IRA assets into income Not FDIC Insured May Lose Value No Bank Guarantee

2. | 2 EO032 290287 8/14 Three misconceptions 1.You can’t take a distribution before age 59½ without penalty 2.Calculating required minimum distributions is complicated 3.Tax benefits stop at the death of the IRA owner

3. | 3 EO032 290287 8/14 Don’t be slowed by penalties before age 59½ Access your IRA penalty free through substantially equal periodic payments Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax. Age 70½ Age 59½ No penalty for distributions Must begin distributions Penalty for distributions

4. | 4 EO032 290287 8/14 *Distributions taken prior to reaching age 59½ are normally subject to an additional 10% tax. Distributions of deductible contributions and earnings will be subject to federal income tax. Follow Rule 72(t) straight to penalty-free distributions You must take systematic payments for five years or until you reach age 59½, whichever is longer Avoids the usual 10% additional tax on taxable IRA distributions made before age 59½ *

5. | 5 EO032 290287 8/14 How does it work? Bob retires at age 50 He must stick to the distribution schedule for 9.5 years (until age 59½) Sally retires at age 57 She must stick to the distribution schedule for 5 years (until age 62)

6. | 6 EO032 290287 8/14 A one-time switch from either the “amortization” or the “annuity” method to the “life expectancy” method. This hypothetical example assumes a 50-year-old, traditional IRA owner, an account balance of $100,000 with an 8% annualized rate of return, and an interest rate of 1.4% in conjunction with the IRS mortality table. Performance is not indicative of any Putnam fund, which will fluctuate. Not all required years of distribution are shown. The road you take makes a difference Distribution method Life expectancy Amortization Annuity Year 1$2,924$3,699$3,681 Year 23,1483,6993,681 Year 33,4003,6993,681 Year 43,6613,6993,681 Year 53,9403,6993,681

7. | 7 EO032 290287 8/14 Three misconceptions 1.You can’t take a distribution before age 59½ without penalty 2.Calculating required minimum distributions is complicated 3.Tax benefits stop at the death of the IRA owner

8. | 8 EO032 290287 8/14 Mapping your RMD involves careful planning You must start taking distributions from your traditional IRA by April 1 of the year after you turn 70½* IRA regulations make taking distributions easy and relatively favorable from a tax standpoint *Note that these distributions are required of traditional IRA owners. Roth IRA owners are not required to take distributions during their lifetime. Age 70½ Age 59½ No penalty for distributions Must begin distributions Penalty for distributions

9. | 9 EO032 290287 8/14 The express route to your RMD has four checkpoints *IRA owners who have a spousal beneficiary who is more than ten years younger than the IRA owner may opt to use the IRS joint life expectancy table. Just keep in mind DateYou must start taking minimum distributions by April 1 of the year after you turn 70½ Calculation methodThere is one simple calculation method * BeneficiaryYou may change beneficiaries whenever you wish without affecting the amount of your lifetime distributions Penalty for failure to withdraw Equal to 50% of the minimum required distribution not taken

10. | 10 EO032 290287 8/14 Three misconceptions 1.You can’t take a distribution before age 59½ without penalty 2.Calculating required minimum distributions is complicated 3.Tax benefits stop at the death of the IRA owner

11. | 11 EO032 290287 8/14 Extend your roadtrip with a Stretch IRA Extend tax deferral Increase compounding potential IRA income for heirs Age 70½ Age 59½ No penalty for distributions Must begin distributions Penalty for distributions

12. | 12 EO032 290287 8/14 Spousal beneficiary Once RMD for the year of death has been made, a spouse beneficiary may take over decedent’s IRA and treat it as his or her own (assuming certain requirements are met) – Spouse can calculate RMDs, if required, based on the uniform distribution table – Name new beneficiaries Spouse can also transfer funds to a beneficiary IRA – If the beneficiary spouse is under age 59½, he or she can access the IRA assets immediately without incurring a 10% early withdrawal penalty – Spouse beneficiary may still opt to treat the beneficiary IRA as his or her own at any time in the future

13. | 13 EO032 290287 8/14 How does it work? Spousal beneficiary example Bob (age 65) rolls $200K into an IRA and names wife, Sally (age 60), as sole beneficiary 0YEARYEAR 0

14. | 14 EO032 290287 8/14 How does the spousal beneficiary work? Bob dies at age 70. Before commencing RMDs, Sally (age 65) elects to treat the IRA as her own and designates their son, Bruce (age 40), as her IRA beneficiary RMDs have not started 0YEARYEAR 5

15. | 15 EO032 290287 8/14 How does the spousal beneficiary work? Year 0Year 50Year 40Year 30Year 20Year 10 Year 11 distribution $12,019 $3.2 million in income based upon an initial investment of $200,000 and cumulative annual distributions of 39 years. This hypothetical illustration assumes an 8% annualized return and that distributions are kept to the required minimum. It does not represent the performance of any Putnam fund or investment. Investors should consider various factors that can affect their decision, such as possible changes to tax laws, the impact of inflation and other risks including periods of market volatility when investment return and principal value may fluctuate with market conditions. Sally dies in year 10 at age 70 before commencing RMDs. The following year, Bruce (age 45) begins receiving payments based on his (much longer) life expectancy under the new IRS regulations. He names his wife, Wendy, as his beneficiary. YEAR10

16. | 16 EO032 290287 8/14 How does the spousal beneficiary work? Year 0Year 50Year 40Year 30Year 20Year 10 Year 11 distribution $12,019 $3.2 million in income based upon an initial investment of $200,000 and cumulative annual distributions of 39 years. This hypothetical illustration assumes an 8% annualized return and that distributions are kept to the required minimum. It does not represent the performance of any Putnam fund or investment. Investors should consider various factors that can affect their decision, such as possible changes to tax laws, the impact of inflation and other risks including periods of market volatility when investment return and principal value may fluctuate with market conditions. Year 20 distribution $24,506 Year 30 distribution $54,566 Year 40 distribution $124,329 Bruce dies at age 74. Wendy continues the established distribution schedule. No rollover is available Year 49 distribution $270,526

17. | 17 EO032 290287 8/14 How does the spousal beneficiary work? Year 0Year 50Year 40Year 30Year 20Year 10 $3.2 million in income based upon an initial investment of $200,000 and cumulative annual distributions of 39 years. This hypothetical illustration assumes an 8% annualized return and that distributions are kept to the required minimum. It does not represent the performance of any Putnam fund or investment. Investors should consider various factors that can affect their decision, such as possible changes to tax laws, the impact of inflation and other risks including periods of market volatility when investment return and principal value may fluctuate with market conditions. Total of 39 annual distributions $3,200,000 was distributed from the account

18. | 18 EO032 290287 8/14 Non-spousal beneficiaries IRA owner may designate a non-spousal beneficiary, including a minor Upon reaching age 70½, owner begins RMDs When IRA owner dies, the beneficiary may establish RMDs based on his/her own life expectancy and name a new beneficiary, * even if RMDs have already started *Special rules may apply if the designated non-spouse beneficiary is a non-person, such as an estate, trust, or charitable organization.

19. | 19 EO032 290287 8/14 How does the non-spousal beneficiary work? Betty (age 60) rolls $200K into an IRA She names her sons — Max, age 34, and Sam, age 40 — as beneficiaries 0YEARYEAR 0

20. | 20 EO032 290287 8/14 How does the non-spousal beneficiary work? Betty begins RMDs using the IRS’s simple calculation method Year 10 distribution = $16,480 0YEAR1YEAR 0

21. | 21 EO032 290287 8/14 How does the non-spousal beneficiary work? Betty dies at age 72 after receiving $53,443 in distributions over 3 years IRA is split evenly between sons Max and Sam 0YEAR1YEAR 2

22. | 22 EO032 290287 8/14 How does the non-spousal beneficiary work? Sam (now age 52) decides to liquidate his portion of the account immediately Sam’s lump-sum distribution = $243,158 0YEAR1YEAR 2

23. | 23 EO032 290287 8/14 This hypothetical example assumes an 8% annualized return with distributions on an initial $200,000 investment based initially on the uniform distribution table. After the owner’s death, distributions are based on the non-recalculated single life expectancy of a single beneficiary. Distributions are taken at the end of the year and are kept to the required minimum. Performance is not indicative of any Putnam fund. How does the non-spousal beneficiary work? Sam receives $243,158. In the year following Betty’s death, year 13, Max (now age 47) begins taking distributions based on his single life expectancy $243,158 Year 12 Year 10 Year 1 Year 49 Annual distributions: BettyMaxSam YEAR12

24. | 24 EO032 290287 8/14 This hypothetical example assumes an 8% annualized return with distributions on an initial $200,000 investment based initially on the uniform distribution table. After the owner’s death, distributions are based on the non-recalculated single life expectancy of a single beneficiary. Distributions are taken at the end of the year and are kept to the required minimum. Performance is not indicative of any Putnam fund. How does the non-spousal beneficiary work? Max’s IRA is depleted. Total of $1,436,936 received in distributions $243,158 Year 12 Year 10 Year 1 Year 49 Annual distributions: BettyMaxSam YEAR49

25. | 25 EO032 290287 8/14 How does the non-spousal beneficiary work? Max has received over $1 million more than Sam This hypothetical example assumes an 8% annualized return with distributions on an initial $200,000 investment based initially on the uniform distribution table. After the owner’s death, distributions are based on the non-recalculated single life expectancy of a single beneficiary. Distributions are taken at the end of the year and are kept to the required minimum. Earnings on Sam’s distribution are not reflected. Performance is not indicative of any Putnam fund. BettySamMax $53,443 $243,158 $1,436,936 Total distributions

26. | 26 EO032 290287 8/14 Three helpful facts on the road to retirement 1.You can take a distribution before age 59½ without penalty 2.Calculating RMDs is straightforward 3.Tax benefits can continue after the death of the IRA owner

27. | 27 EO032 290287 8/14 What’s next? Consider how much IRA income you may need in retirement Complete a Putnam IRA checklist and inventory Check your IRA beneficiary designations, but know that they can be changed without affecting RMDs Ask your financial representative about ways to help make the most of your IRA

28. | 28 EO032 290287 8/14 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 1-800-225-1581. Please read the prospectus carefully before investing. Putnam Retail Management putnam.com

29. | 29 EO032 290287 8/14 Shifting into retirement Turning IRA assets into income Not FDIC Insured May Lose Value No Bank Guarantee