Maximize college savings.

Maximize tax advantages.

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529 plans are no one-hit wonders. Not only are they a flexible way to save for college, but they also offer tax advantages not found anywhere else.

Many investors know that 529 plans provide significant education planning benefits, including tax-deferred growth on account assets and tax-free distributions for qualified expenses. But few are aware of the opportunities for those who want to contribute to 529 plans in a tax-efficient manner:


  • For 2023, each person has a federal gift tax exclusion of $17,000, or $34,000 for a married couple. Contributions to a 529 plan qualify for this exclusion.


  • A special accelerated gifting rule allows each donor to gift up to 5x the annual gift tax amount in a single year, without incurring gift tax consequences.1


  • Although the account owner retains control of the assets in a 529 plan, those assets are excluded from the donor’s or owner’s taxable estate.


Video highlights the perfect duo of 529 plan benefits 

For more details on how 529 plans can help your clients maximize college savings — and maximize tax advantages — watch our recent Asset TV video.


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