529 Savings Plan

What Is a 529 Savings Plan?

A 529 savings plan is a tax-advantaged way to save for higher education. Money from a 529 savings plan can be used to pay for tuition, books, and supplies at any accredited college, university, or vocational school.

How Does a 529 Savings Plan Work?

You may be surprised at how little it takes to start a 529 savings plan. After the initial contribution, you may also be able to set up scheduled contributions. And, not only can the account owner make contributions, grandparents, aunts, and uncles may also contribute to the plan. What a lasting and significant gift for loved ones to make on a child's behalf! What's most important is the distributions from a 529 savings plan will not be taxed by the federal government as long as they are used for qualified higher education expenses.* Some states also may offer tax breaks.

A Financial Professional Can Help

Don't wait. A financial professional can help cut through all the financial jargon to see if a 529 savings plan is right for you. Your financial representative can serve as your financial translator.

There may be an in-state qualified tuition plan that provides benefits not available from the 529 plans currently offered through W&S Brokerage Services. Before investing, investors should consider whether their state of residency offers similar qualified tuition plans that offer more beneficial state tax benefits, or other benefits. 529 plans are subject to investment risk, including the potential loss of principal.

*If withdrawals are used for purposes other than higher education, the earnings will be subject to a 10% federal tax penalty – in addition to federal and, if applicable, state income tax. W&S Brokerage Services does not offer tax advice. For specific tax information, consult your attorney or tax advisor. Securities offered through W&S Brokerage Services, Inc., a registered broker-dealer and member FINRA / SIPC. All companies are members of Western & Southern Financial Group.

The Western and Southern Life Insurance Company
Western-Southern Life Assurance Company | Cincinnati, OH

Investments are offered through an affiliate of Western & Southern Life.


Last Updated: 10/31/2016