529 College Savings Plan
Federal tax benefits and minimal impact on financial aid.
Invest in a 529 college savings plan to provide for education costs and limit your tax exposure, with a minimal impact to potential financial aid.
Overview
| Yearly Contribution Limit |
None |
|---|---|
| Income Limits |
None |
| Federal Tax on Withdrawals |
None for qualified educational expenses |
| Penalties for Non Qualified Withdrawals |
10% additional federal tax on taxable distributions |
| Deadline for Tax Year Contributions |
December 31 of that year |
| Qualified Expenses |
K-12 (tuition), and college |
Features
- Unlike Coverdell Education Savings Accounts and Roth IRAs, 529 plans have no income limits, age limits or annual contribution limits.
- No federal tax on earnings (state tax laws vary) when used for qualified education expenses.
- Beneficiaries are eligible for the HOPE Scholarship, and Lifetime Learning Credit in the same year.
Details
- Custodian remains the account owner, in charge of withdrawals, and can change beneficiaries.
- Make tax-free withdrawals for up to $10,000 in tuition expenses for K-12 schools.
- You can contribute to both a 529 plan and an ESA for the same beneficiary.
Choose from Ready-made Portfolios of Securities
Understand how your investments can help you reach your goals. Work with Key Investment Services to build a plan that fits your timeline and your risk strategy.
Investment products are offered through Key Investment Services LLC (KIS), member FINRA/SIPC and SEC-registered investment advisor. Insurance products are offered through KeyCorp Insurance Agency USA, Inc. (KIA). KIS and KIA are non-bank affiliates of KeyBank National Association (KeyBank).
To learn more about KIS’s investment business, as well as our relationship with you, please review our KIS Disclosure page.
Check the background of KIS on FINRA's BrokerCheck.
Non-Deposit products are:
KIS, KIA and KeyBank are separate entities, and when you buy or sell securities and insurance products you are doing business with KIS and/or KIA, and not KeyBank.
Services provided by KeyBank, KIS and/or KIA should not be used in substitution for independent and personal tax advice. KeyBank, KIS and/or KIA do not provide legal advice. Individuals should consult their personal tax and/or legal advisor concerning their particular situation.