A Cetera Investment Services Program

College Saving Plans (529)

Planning for college expenses is one of the largest financial projects for a family, so the challenges of meeting rising secondary education costs can seem great. 529 college savings plans are tax-advantaged savings vehicles intended to assist families in meeting the rising costs of higher education. 

Some of the advantages of 529 College Savings Plans include:

  • Plan contributions grow income tax-deferred.
  • Funds may be used at any accredited post-secondary school in the United States for part- and full-time education.
  • The account holder retains control of the assets within the program regardless of beneficiary's age.
  • The beneficiary can be changed at any time to another member of the beneficiary's family.
  • Contributions are invested in professionally managed portfolios, which are subject to market risk.
  • Withdrawals for qualified education expenses such as: tuition, room and board, course books, software, computers, and mandatory fees are free from federal tax. 
  • People of all income levels are eligible to contribute to a 529 plan.
  • Some states may also offer their own tax advantages for residents who invest in the state sponsored plan.
  • Assets within 529 plans may be protected from bankruptcy.

For more information on the unique features and benefits of a 529 plan, please call or visit your local branch to speak to one of our Financial Consultants to discuss your investment options for your child’s college education.

Most 529 Plans will accept both "in-state" and "out-of-state" applicants. Each state's 529 Plan must be evaluated based upon its own merits relative to your needs, and the tax effects on the contributor and the beneficiary. Plan holdings could reduce the beneficiary's ability to qualify for grants and student loans. Before investing, the investor should consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan.

Withdrawals for something other than qualified higher educational expenses may be subject to federal and state income taxes and a 10% IRS penalty on earnings. You should consider many factors before deciding which 529 Plan is most appropriate. Some of these factors include: the Plan's investment options and the historical performance of these options, the Plan's flexibility and features, the reputation and expertise of the Plan's investment manager, Plan contribution limits, and the federal and state tax benefits associated with an investment in the Plan.

FAIC Investment Services representatives do not give tax or legal advice. The comments regarding the law and tax treatment in this material simply reflect current interpretations of such laws. Since laws are always subject to interpretation and possible changes, FAIC Investment Services recommend that you seek the counsel of an attorney and/or other qualified tax advisor as to the specific legal and tax consequences of all planning concepts as they apply to the facts of your particular situation.

FAIC Investment Services is a Cetera Investment Services program. Securities and insurance products are offered by, and all Financial Consultants are registered with, Cetera Investment Services LLC, member of FINRA and SIPC . Cetera Investment Services LLC is an independent entity and is not affiliated with First American International Bank. FAIC Investment Services is located at First American International Bank. First American International Bank is a wholly owned subsidiary of First American International Corp. Cetera Investment Services conducts business in English. Any non-English communications are a customer service accommodation. English-language documents and agreements will be controlling.

Investments are: •Not FDIC insured •May lose value •Not financial institution guaranteed •Not a deposit •Not insured by any federal government agency.

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Financial Consultants are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.