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.

Related Information


Disclaimer


Morningstar Investment Services, Inc, is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar® Managed PortfoliosSM is offered by Morningstar Investment Services, Inc., a registered investment advisor, and is intended for citizens or legal residents of the United States or its territories. This program can only be offered by a registered investment advisor or investment advisor representative. Morningstar Investment Services is not affiliated with People’s Securities, Inc.

*Qualified withdrawals include tuition, room and board, books and other educational expenses.
Withdrawals for non-qualified expenses are subject to income tax and may face a 10% federal tax penalty on earnings.


Investment and Insurance Products:

  • Not Insured by FDIC or any Federal Government Agency
  • Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate
  • May Lose Value

Investment and insurance products are offered through People’s Securities, Inc., a Broker/Dealer, member of FINRA and SIPC, an insurance agency and a registered investment advisor. People’s Securities, Inc. is a subsidiary of People’s United Bank, N.A.

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