Paying for a child’s or grandchild’s college education is an expensive proposition, even for families that have saved diligently in pursuit of their goal. The 529 plan is a tax-advantaged investment vehicle that offers both college funding and estate planning benefits1.
College savings plans that let you choose from a menu of investments and offer more return potential, as well as risk.
Plans are generally sponsored by a state government and administered by one or more investment companies. Contributions are made on an after-tax basis, but withdrawals used for qualified undergraduate or graduate school expenses are federal income tax-free. Withdrawals for other purposes are subject to ordinary income taxes, a 10 percent federal penalty tax and possible state taxes. Eligibility to contribute is not limited by age or income, and total contribution limits often exceed $200,0002.
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Call: 1-877-664-3332
Mail: Woodmen Financial Services, Inc.
1700 Farnam Street, Suite 2560
Omaha, NE 68102-2015
Investments are available through Woodmen Financial Services, Inc. (WFS). Visit our About page to learn more and access the Regulation Best Interest Disclosure and the Customer Relationship Summary.
529 plans can support a long-term gifting strategy while providing significant control over assets that have been removed from a taxable estate. Tax rules permit individuals to give $18,000 to as many individuals as they choose each year without triggering the need to file a federal gift tax form.
Consult your WoodmenLife Financial Representative3 and an estate planning specialist or professional tax advisor to determine the best strategy on how a 529 plan may help you pay for college expenses while also complementing your estate planning goals.
Investors should carefully think about plan investment goals, risks, charges, and expenses before investing. Be sure to consider whether your or your beneficiary’s home state offers benefits that are only available for residents who participate in its qualified tuition program. By investing in a 529 plan outside of the state in which you pay taxes, you may lose the tax benefits offered by that state’s plan.
With so many choices available in 529 College Savings Plans, and so many differences among plans, you’re likely to have questions about how specific features relate to your situation.
Make smart choices for your future. We can help you find the best way to reach your goals.
The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions or other factors.
By investing in a 529 plan outside of your state of residence, you may lose any state tax benefits. Non-qualified withdrawals are subject to federal and state income tax and a 10% penalty. 529 plans are subject to enrollment, maintenance, management fees and expenses. Contact your tax advisor for details.
WoodmenLife, its employees and Representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
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