Get an early upper hand saving for educational expenses with a tax-advantaged 529 plan. Ideal for middle- to upper-income families, 529 plans offer a flexible way to pay school costs and may help minimize student loan debt.
Investors should carefully consider the investment objectives, risks, and charges and expenses associated with 529 plans prior to investing. Additional information about 529 plans is available in the issuer’s Official Statement which should be read prior to investing. A copy of the Official Statement can be obtained by contacting your financial advisor or by calling 800-634-1100.
Prior to investing, 529 plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. By investing in a plan outside your state of residence, you may lose available state tax benefits. Make sure you understand your state’s tax laws to get the most from your plan. 529 college savings plans allow earnings to accumulate tax-free until withdrawn and withdrawals for qualified higher-education expenses are also tax-free. If you make a withdrawal for any other reason, the earnings portion of the withdrawal will be subject to both state and federal income tax, and possibly a 10 percent federal tax penalty.
Talk with a U.S. Bancorp Advisors Wealth Management Advisor about saving for school costs and how to set up a 529 plan.