College Planning
Funding a College Education
In the past, most families began saving for college when their children were in high school, and expenses were paid from both savings and current income. Today, though, the continuously rising costs of higher education have made this method of funding inadequate.
We know that saving for a college education can be hard since the costs go beyond tuition — there are books, fees, room and board, and so much more to consider. With these costs consistently on the rise, saving enough can seem overwhelming. There are many advantages to saving for post-secondary education with a 529 - one of which alleviates the overwhelming cost of college when the time comes.
Flexibility and Control
No income restrictions. Anyone can establish an account for a student regardless of his or her income level.
Versatility
Since there are no state residency requirements, money invested can be used at an accredited public or private colleges, trade, or graduate schools in the United States.
Control
You can change the beneficiary to another family member, including yourself, without tax consequences.
SUBJECT TO CERTAIN EXCEPTIONS. THE NEW BENEFICIARY MUST BE A MEMBER OF THE FAMILY OF THE PREVIOUS BENEFICIARY AS DEFINED BY SECTION 529 OF THE CODE AND THE PROGRAM DISCLOSURE STATEMENT TO AVOID FEDERAL INCOME TAX CONSEQUENCES. CERTAIN CHANGES MAY RESULT IN GIFT AND GENERATION-SKIPPING TRANSFER TAXES.
Participation in a 529 Education Savings Plan (529 Plan) does not guarantee that contributions and investment return on contributions, if any, will be adequate to cover future tuition and other education expenses or that a beneficiary will be admitted to or permitted to continue to attend an educational institution. Contributors to the program assume all investment risk, including potential loss of principal and liability for penalties such as those levied for non-educational withdrawals. Check with your state's guidelines prior to withdrawing the funds.
An investor should consider, before investing, whether the investor's or designated beneficiary's home state offers any favorable state tax treatment or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Consult with your financial, tax or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances.
For more complete information, including a description of fees, expenses and risks, see the offering statement or program description.