The Future Scholar 529 Plan

As college costs continue to rise, now may be the best time to consider a 529 college savings plan. As a qualified tuition savings plan under Section 529 of the Internal Revenue Code, a 529 plan provides investors with a smarter way to plan for a child’s college education by offering tax advantages, gifting and estate planning benefits, flexibility and control.

Key benefits of a 529 college savings plan

  • Ability to contribute up to $15,000 per year ($30,000 for married couples), per beneficiary, without triggering federal gift taxes
  • A special five-year forward gifting provision allows for larger gifts that are also gift-tax-free
  • Maintain complete control of the account (including ability to revoke gifts), even though contributions are considered completed gifts and are excluded from the account owner’s taxable estate
  • Change the beneficiary (to a qualified family member of the original beneficiary) if needed
  • Make a withdrawal from the account1
  • Earnings grow exempt from federal taxes, and in many states, also state income taxes

Future Scholar 529 Plan Advantages

  • An expanded, multi-managed investment lineup
  • Low fees — one of the lowest-cost advisor-sold plans in the country2
  • High contribution limit of $520,000
  • Joint ownership of accounts
  • The strength and stability of a well-known asset manager — Columbia Threadneedle Investments

Benefits for South Carolina taxpayers

The Future Scholar 529 Plan is sponsored by the South Carolina Office of the State Treasurer and offers South Carolina taxpayers additional tax advantages. Contributions up to the maximum account limit of $520,000 per beneficiary are tax deductible from a client’s South Carolina state income taxes.3