As the costs of college tuition continues to increase, it is never too early to start saving for future higher education expenses. A 529 plan is a tax-advantaged investment that simplifies saving for college or other post-secondary training for a designated beneficiary, such as a child or grandchild. 529 plans allow for tax-free growth and withdrawals when the funds are used for education expenses, such as tuition, books, and room and board. Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts can also be used to help save for a minor’s anticipated education expenses.
For more complete information about 529 college savings plans, including investment objectives, risks, fees and expenses associated with it, please carefully read the issuer’s official statement before investing. It can be obtained from your financial advisor. Some states offer state residents additional benefits, such as a state tax deduction for contributions to the plan, reduced or waived program fees, matching grants, and scholarships to state colleges. Any state-based benefit offered with respect to a particular 529 college savings plan should be one of the many appropriately weighted factors to be considered in making an investment decision. You should consult with your financial, tax, or other advisor to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances. You also may wish to contact your home state or any other 529 college savings plan to learn more about the features, benefits and limitations of the state’s 529 college savings plans.