In a move intended to draw money to its education IRAs, First Investors will waive the front-end load on its funds as long as the proceeds are from other firms’ education IRAs.

First Investors’ promotion is similar to other promotions that fund companies traditionally offer during tax season to draw money to their IRA products. Yesterday, OppenheimerFunds announced it would give A.G. Edwards reps a full reallowance on A share sales in funds included in its IRA program and the brokerage has a similar promotion through Franklin Templeton.

First Investors’ promotion will waive the sales charge on A shares when the investment is made with the proceeds of an investment in an education IRA "established with any other mutual fund which imposes a front-end or contingent deferred sales charge," according to a company regulatory filing.

The offer, which begins Monday, requires investors to notify First Investors that they are eligible for the waiver and may require them to provide documentation proving their eligibility. If investors redeem their shares within two years of the purchase, they will pay a contingent deferred sales charge of 1%, according to the filing.

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