529 Plans Can Offer Substantial Tax Advantages Along With Great Educational Benefits

Tax-Free Earnings Growth: There is no income tax due on any earnings while they are in your 529 Plan.

Tax-Free Distributions: Distributions put towards qualified education expenses made after December 31, 2001 are federal income tax free.

Any Institution in the United States: 529 assets can be used at any accredited institution of higher learning in the United States, as well as many foreign institutions.

No Income Limits: There are no income limits restricting participation.

Investment Choice: 529 Plans have various investment options you can choose from depending on your preferred investing style.

High Contribution Limit: Though the amount varies from plan to plan, you can typically contribute $225K or more to your 529 Plan.

Beneficiary Flexibility: You can change the beneficiary of your account to any other member of the original beneficiary's family, including a parent with no penalty.

Withdraw Funds at Any Time: Withdrawals can be made from your account at any time, but if the withdrawal is not used for a qualified education expense, the earnings will be taxed as ordinary income to the participant and a 10% penalty or additional tax will be assessed on any distributed investment gains.

Special Gift & Estate Tax Treatment: Contributions to your 529 are considered completed gifts for federal gift and estate tax purposes and can be excluded from your taxable estate. (This is subject to a 5-year look-back.)

A Great Benefit: A 529 Plan can be an integral part of an employee benefit program with payroll direct deposit.

THE KEY TO FUNDING HIGHER EDUCATION IS TO START EARLY AND SAVE REGULARY

An investor should consider the risks, objectives, charges, and expenses associated with the 529 plan before investing. This information and more is available in the issuer's official statement, which can be obtained by contacting the plan sponsor or by contacting your financial advisor. Read it carefully before investing. Before investing, an investor should also consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

Securities America and its representatives do not provide tax or legal advice. Please consult the appropriate professional regarding your specific situation.

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