Study Up on the Basics
What is a 529?
A 529 plan is a tax-advantaged investment account. Its name stems from Section 529 of the IRS tax code, which provides special tax benefits — clearing a potential path for students to graduate with less debt.
Opportunity for growth
A 529 plan is an investment account, so your money has the potential to move with the markets. And the earlier you can start putting money away, the more time you have to contribute and to give the account growth opportunities.
Tax advantages
Your 529 savings are tax-free while in the account, so any potential growth is yours to use for college. When it’s time to use the money for school, withdrawals for qualified expenses have the potential to be tax-free. Your home state may offer additional tax breaks, too.
Flexibility down the road
Wherever your loved one’s education journey leads, their 529 savings can follow. Funds are eligible for use at most two- and four-year institutions, as well as many technical and trade schools.
Anyone can help save
Friends, family, and even friends who feel like family can easily contribute to the account. Nothing like the gift of an education.
NEST 529 College Savings
Nebraska’s 529 plan has gained national recognition for its investment options. In-state residents can take advantage of additional tax benefits when they invest with NEST, too.
CollegeCounts 529
Alabama’s highly rated plan was named one of Kiplinger’s favorites thanks to its low fees. CollegeCounts 529 offers quality fund families and great flexibility.
An investor should consider the investment objectives, risks, and charges and expenses before investing. This and other important information is contained in the program disclosure statement for the plan which can be obtained at the plan web site and should be read carefully before investing. You can lose money by investing in a portfolio. Each of the portfolios involves investment risks, which are described in the program disclosure statement.
Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s 529 plan.
|
