What Are the Advantages of a 529 College Savings Plan?
Tax-deferral can have a dramatic affect on the growth of an investment.
With a state-sponsored 529 College Savings Plan your contributions can
grow tax-deferred (some states allow contributions to be partially or
completely deductible) and distributed income tax-free as long as
distributions are used for qualified education expenses such as tuition,
fees, room and board at higher education
institutions.There is no limit on contributions but
some states tend to limit contributions once the plan assets have reached
a defined maximum (typically $200,000 - $250,000). You may make
contributions of up to $55,000 per beneficiary in a single year without
triggering a federal gift tax. Married couples may contribute $110,000 per
beneficiary in a single year.*Assets are professionally
managed by fund managers selected by the state. Participants can choose
from two to almost 30 mutual fund-type investments. Control of the account
remains with the contributor regardless of the age of the beneficiary.
This information may help you analyze your financial planning needs. It is based on information and
assumptions provided by you regarding your goals, expectations and financial situation. This service shall
not infer that company assumes any fiduciary duties. In addition, such service should not be relied upon as
the only source of information. This information is supplied from sources we believe to be reliable but we
cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance
information. Past performance does not guarantee nor indicate future results.
