529 College Savings Plan

Education is an expense that in some cases may rival the cost of your house and even your retirement. According to The College Board's 2010 annual survey, published tuition and fees at public universities and colleges increased 5.6% annually, with private nonprofit four-year institutions seeing a tuition and fee increase of 28% over the past decade.

A 529 College Savings Plan may help eliminate some of these worries. Contributions are made to a 529 for the benefit of an individual's higher education. In addition, investing in a 529 may help reduce your estate tax exposure, and when these funds are used for qualified expenses, distributions are not taxable.

Benefits of the 529 College Savings Plan include:

  • Earnings grow federally tax-deferred until withdrawn
  • Proceeds may be used at any accredited post-secondary school in the United States for part- and full-time education
  • Beneficiaries receiving 529 income remain eligible for the HOPE scholarship and Lifetime Learning Credit in the same year
  • The owner retains control over the withdrawals
  • Contributions are invested in professionally managed portfolios, which are subject to market risk
  • Earnings and withdrawals for qualified education expenses are free from federal tax
  • Contributions can be made to both a Coverdell Education Savings Account and a 529 Plan in the same year
  • There are no income limitations

See the Educational Savings Comparison Chart or contact your financial advisor today.