529 College Savings Plans
With a 529 savings plan you can save for anyone – your child or grandchild, a niece or nephew, a friend or even yourself. 529 savings plans provide a tax-advantaged way to save for qualified higher education expenses. These plans are generally sponsored by individual states, while plan assets are professionally managed by independent investment firms or state government agencies.
529 Savings Plans Benefits:
- Earnings can grow free from federal tax.
- Withdrawals for qualified higher education expenses are free from federal tax.*
- A number of states allow a deduction from (or a credit against) state taxes for all or part of a contribution to certain 529 plans.
- You can contribute up to $14,000 ($28,000 for married couples) annually without gift-tax consequences.
- Under a special election, you can invest up to $70,000 ($140,000 for married couples) at one time by accelerating five years’ worth of investments.
- There are no income limits. You can contribute no matter how much you earn.
You Maintain Control:
- The account owner maintains control of account assets and determines the timing and amount of distributions to the beneficiary.
- Change beneficiaries without penalty provided the new beneficiary is a member of the previous beneficiary’s family.
The 529 College Savings Plan may be invested in a variety of mutual funds and age-based portfolios offered through different mutual fund companies. Call us today at 800-392-3009 to schedule an appointment with a Financial Advisors or visit a People's United branch.