General Facts About 529s:

• 529 plans are administered by state agencies and organizations and named after section 529 of the Internal Revenue Code 26 (USC).
• 529 plans are tax-advantaged savings plan designed to encourage saving for future college costs.
• 529s benefit from federal tax and some state tax advantages.
• Every State now has at-least one 529 plan available. It is up to each state to decide whether it will sponsor a 529 plan (or possibly more than one), and what the plan will offer.
• Assets may be used for eligible college expenses: tuition, fees, room board, textbooks, school supplies and a computer (if required by the institute).
• Any U.S. taxpayer can open a 529 plan for ANYONE – including, yourself!
• Account owners do not need to live in the state sponsoring their 529 plans, since most do not have state residency requirements. Accounts can be opened in as many states desired AND the beneficiary can go to any accredited institute in the U.S. or abroad.
• 501c3 Non Profits can open 529 plans just like an individual for ex: A scholarship.
• If the child does not go to college you can change the beneficiary penalty free. To avoid taxes and penalties, your new beneficiary must be a member of the family of your original beneficiary. Certain restrictions apply. Please consult your tax advisor and the Plan Disclosure for more detailed information regarding a change in beneficiary.
• U.S. Savings Bond owners generally may redeem bonds purchased after 1989 tax-free and deposit the proceeds in a 529 plan. IRS restrictions apply. Please see the IRS Tax Benefits for Education for current income limitations or call 1-800-888-2723 for more information.

You should determine whether the state in which you or your beneficiary pay taxes or live offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in either of our 529 Plans. You should consider such state tax treatment and benefits, if any, before investing.