Give a Holiday Gift That Doesn't End When the Batteries Run Out.
How many times have you given your favorite child or grandchild the hottest toy, only to see it set aside in short order? This year, give something that’s not only unbreakable but has the potential to improve over time – a donation to a child’s 529 college savings plan.
With higher education costs increasing more rapidly than inflation, smart investors are turning to 529 plans. These plans provide:
Tax-deferred earnings potential
Possible tax-deductible contributions for residents who participate in their own state’s plan
Tax-free withdrawals for qualified higher education expenses1
Control of funds, even after the child reaches the age of majority
The flexibility to change beneficiaries anytime
Account limits of more than $200,000 in most cases
Possible estate benefits2
Give the children on your list a gift with the potential for lasting value. Contact your investment representative to learn more about 529 college savings plans.
1. Withdrawals used for expenses other than qualified education expenditures may be subject to federal, state and penalty taxes. Lump sum contribution of $55,000 per donor, per beneficiary in a single year, with no additional contributions for the next four years. Special gifting provision applies. Please consult your tax professional.
2. In the event of your death within a five-year period, the portion of the original gift allocated to years following your death is considered part of your estate for estate tax purposes. No additional contributions can be made for the next four years.
