Whether your are saving for a family member, a friend or yourself, a 529 college savings plan offers a tax-advantaged way to save for higher education. A 529 college savings plan provides those saving for college with an unmatched combination of benefits, including:

Flexibility

• You can open a 529 plan for anyone – your child, grandchild, spouse, a friend or even yourself. 
• There are no income limits. You can contribute no matter how much you earn. 
• Assets in a 529 plan can be used to pay for a variety of higher education expenses, including tuition, room and board, books, supplies and certain other fees and expenses, including computers and computing expenses. 
• Though plans are administered by individual states, investors can choose from any plan, regardless of where they live. 
• Investors can use a 529 plan to pay qualified higher education expenses at any eligible educational institution, not just schools in the state sponsoring the plan. 

Oversight

• The account owner rather than the beneficiary maintains control of account assets and determines the timing and amount of distributions.
• Account owners can change beneficiaries without penalty provided the new beneficiary is a member of the previous beneficiary’s family.

Tax Advantages

• Earnings in 529 accounts can grow free from federal rax.
• A number of states allow a deduction from (or credit against) state taxes for all or part of a contribution to certain 529 plans.
• Withdrawals for qualified higher education expenses are free from federal tax.

Tax free investing

With 529 plans, dividends and capital gains are not taxed as long as plan assets are used to pay qualified educational expenses. This means that a 529 plan can offer significant advantages over saving for college in a taxable account-namely, an opportunity for a bigger college savings nest egg.

  Examples assume an 8% average annul rate of return. The results shown are not intended to represent an investment in a specific fund. Your investment experience will differ. Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

A few things to note about 529 savings plans

• If you withdraw money from your 529 college savings plan account for purposes other than higher education, your earnings will be subject to federal income tax and possibly a 10% federal tax penalty.
• Your 529 college savings plan holdings could impact your beneficiaries ability to qualify for grants and students loans. Ask your financial adviser for details.
• Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through other plans. Talk to your tax adviser.

Investments are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Share prices and returns will vary, so investors may lose money. investing for short periods makes losses more likely. For current information and results contact an advisor.

An investor should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. More information is available in the issuer’s official statements which can be obtained from your financial professional. The Official statement should be read carefully before investing.