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What is a 529 Plan?

A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996.

Why consider a 529 College Savings Plan?

With their flexibility and high contribution limits, 529 Plans are an excellent choice for many families trying to save for future education expenses. Individuals can open a 529 Plan account for any beneficiary, including themselves, and enjoy tax-deferred growth and tax-free withdrawals for qualified higher education expenses such as tuition, books and room and board at any accredited institution.1 The contribution limits vary depending on the plan, but in some cases it can be over $250,000.  

Your Representative can help you decide if a 529 College Savings Plan is right for you. 

Learn more about funding education

1 529 Plans are subject to certain risks, fees or charges, and expenses that must be considered when selecting a college savings plan. In addition, 529 Plans are also subject to market risk, which is the risk that stock prices may decline in response to the overall market environment and economic conditions. As a result, your account may increase or decline in value. By investing in a Plan outside of your state of residence, you may lose any state tax benefits. Nonqualified withdrawals are subject to federal and state income tax and a 10 percent penalty. Contact your Representative for more information. Please consider the Plan's investment objectives, risks, charges and expenses carefully before investing. This and other information about the 529 Plan are contained in the Plan disclosure document and prospectuses. Please read them carefully before you invest.  

Neither Foresters Financial nor its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.

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