College Savings
What is a 529 savings plan?
A 529 savings plan is a tax-deferred, qualified tuition program. It is designed specifically to create savings for higher education. It can used at any eligible college, university or graduate school in the U.S. Tax-deferred growth on earnings and federal income tax-free withdrawals set 529 savings plans apart from other college savings investments.
Some 529 plans offer flexible contribution options, a variety of investment choices, and tax advantages to enhance growth. If your state or your designated Beneficiary's state offers a 529 Plan you may want to consider what, if any, potential state income tax or other benefits it offers, before investing. State tax or other benefits should be one of many factors to be considered prior to making an investment decision.
Please consult with your financial, tax or other advisor about how these state benefits, if any, may apply to your specific circumstances. You may also contact your state 529 plan or any other 529 college savings plan to learn more about their features. Please contact us at 1-888-MINTCO-8, to obtain a Plan Disclosure Document or prospectus for any of the underlying funds. The Plan Disclosure Document contains complete details on investment objectives, risks, fees, charges and expenses, as well as more information about municipal fund securities and the underlying investment companies that should be considered before investing. Please read the Plan Disclosure Document carefully prior to investing.
Why would I want one?
So you can help make a college education a reality for a child or grandchild. It's a tall order. One that's growing taller all the time. Average costs at a private, 4-year college today are almost $100,000. Look for that number to soar to $228,000 by 20221.
A 529 plan offers tax advantages and other unique features that can help you meet these staggering costs. For example, with a 529, earnings are tax-deferred and can be reinvested to enhance growth. What's more, withdrawals made for qualified educational expenses - tuition, fees, books, room and board; even some expenses for special needs students - are free from federal income tax2.
A 529 plan also offers accelerated gifting and can be funded by depositing up to five years of contributions at once - without a federal gift tax. The maximum contribution is $55,000 per beneficiary; $110,000, if married filing jointly3.
EXPLORE OUR 529 PRODUCTS
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1. The Annual Survey of Colleges of the College Board and Data Base, 2003-2004. ) 2003 College Entrance Examination Board. All rights reserved. www.collegeboard.com.
2. State laws will vary. If your state offers a plan you may want to consider what, if any, potential state income tax benefits it may offer.
3. Donor must elect that the gift be treated as having accrued over a five-year period. If additional gifts are made to the same beneficiary during this five-year period, a federal gift tax may be levied. If the donor dies within this five-year period, a pro rata share will be included in the donor's estate for estate tax purposes.
529 Account
Created by Section 529 of the Internal Revenue Code, a 529 account is a college savings plan featuring a disciplined approach to savings, flexible contribution options, investment choices, and tax advantages.