Notes to Financial Statements (unaudited)
1. Significant Accounting Policies Lord Abbett Tax-Free Income Fund, Inc. (the "Company") is an open-end
management investment company. The Company consists of ten separate portfolios ("Funds"). Each Fund is non-
diversified as defined under the Investment Company Act of 1940 except for the National Fund. The financial
statements have been prepared in conformity with generally accepted accounting principles, which permit
management to make certain estimates and assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the Company. (a) Security valuation is determined as follows:
Securities are valued at latest prices on the basis of valuations furnished by an independent pricing service or, in
their absence, at fair value as determined under procedures approved by the Board of Directors. (b) It is the
policy of the Company to meet the requirements of the Internal Revenue Code applicable to regulated investment
com panies and to distribute substantially all net investment income and net realized gains. Therefore, no federal
income tax provision is required. (c) Security transactions are accounted for on the date that the securi ties are
purchased or sold (trade date). Interest income is recorded on the accrual basis. Net invest ment income (other
than distribution and service fees) and realized and unrealized gains or losses are allocated to each class of shares
based upon the relative proportion of net assets at the beginning of the day. (d) The organization expenses of the
Min ne sota Fund are being amortized evenly over a period of five years from its commencement of operations.
2. Management Fee and Other Transactions With Affiliates The Company has a management agreement with
Lord, Abbett & Co. ("Lord Abbett") pursuant to which Lord Abbett supplies the Company with investment
management services and executive and other personnel, pays the remuner ation of officers, provides office space
and