A 529 plan can help provide your grandchild with the funds to attend college and to get a better start in life. And, your grandchild can use the assets at any eligible school around the country. It can also provide you, the account owner, with:
- Tax-deferred growth and federal and state tax-free qualified withdrawals1
- Control over the account
- Gift-tax benefits
- Estate planning benefits
An enduring legacy
If there are assets remaining in the account after your grandchild has graduated from college, another member of the family can be named as the beneficiary, for an ongoing legacy. A 529 plan can give you the satisfaction of knowing that you are helping open the door to education for generations to come.
1 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.