A 529 education savings plan allows contributions from anyone, making it easier for family and friends to participate.
In some states, residents may qualify for state tax deductions or credits for contributing to certain 529 plans. Tax benefits vary, so investors should consult a tax professional about their individual situation.
Even small, consistent contributions can help build education savings over time.
To help invite participation, Edward Jones offers a gift announcement that provides simple instructions for contributing to a child’s 529 plan for occasions like birthdays or holidays. We also offer cards that contributors can use to share their gift with the child. For more information, ask your financial advisor for details.
This chart is a hypothetical example and should not be considered an indication of performance of a 529 plan. These estimates assume that contributions of $50, $100 and $200 per month are made at the beginning of the month, with a 7% annual return. These estimates also assume that the money is invested in a tax-free investment vehicle, such as a 529 plan. The data does not reflect any investments currently available through Edward Jones. Hypothetical returns do not include commissions or fees, which would reduce the results. Systematic investing does not guarantee a profit or protect against loss. You should consider your ability to continue investing through periods of low price levels.
Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds and protection from creditors that are only available for investments in such state’s 529 qualified tuition program.
Tax issues for 529 plans can be complex. Please consult your tax advisor about your situation. Edward Jones, its financial advisors and employees cannot provide tax or legal advice.
