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College Education Plans
Funding a college
education, just like any major financial goal, is something you can achieve.
It begins with commitment and careful planning. It’s never too soon – or too
late – to start.
Created in
1996 by Section 529 of the Internal Revenue Code, a 529 Plan is a qualified
tuition program for college savings. The plan offers special state and
federal tax benefits. This plan can be used to pay for qualified higher
education at any eligible college, university, vocational school or other
post-secondary institution in the country (as well as some outside of the
United States).
TAX ADVANTAGE:
 Earnings grow tax-free*
for qualified education expenses and are federal tax-free.
Contributions of up to
$55,000.00 may be excluded from federal gift tax, pro rate over a 5 year
period.
Contributions are
considered removed from the estate for tax purposes, while the account owner
still retains control over how the money is used.**
*Earnings grow tax-free
and are distributed Federal tax-free when used for qualified education
expenses.
**If a participant dies
during the 5 year period in which gifts have been allocated, gifts
representing the outstanding years revert back to the participant’s estate.
FLEXIBILITY & CONTROL:
Used at accredited
institutions nationwide for a wide range of expenses.
High contribution
limits.
Monthly investments as
low as $50.00.
Anyone can contribute
to the account – no income level restrictions or age limitations
Account owner can
change beneficiaries at any time, while maintaining control of the account.
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