529 plans

Get an early upper hand saving for educational expenses with a tax-advantaged 529 plan.1  Ideal for middle- to upper-income families, 529 plans offer a flexible way to pay school costs and may help minimize student loan debt.

  • Earnings are exempt from federal tax when used for qualified expenses. Non-qualified withdrawals are subject to taxes.1 
  • Contributions from family or even friends may be excludable up to federal gift and estate tax  limits.2,3
  • Use the money to pay for public, private and religious K–12 tuition as well as college expenses, including tuition, housing, computers and other supplies.
  • 529 plans offer high maximum contributions that vary by state.
  • There are no time or age limits on contributing to or using a 529 plan.
  • Residents are not limited to investing in their own state's plan. However, tax laws vary by state so it's important to compare different 529 plans to find one that fits your needs.

Meet with a financial advisor.

Talk with a UnionBanc Investment Services Financial Advisor about saving for school costs and how to set up a 529 plan.

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Disclosures

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  1. Investors should carefully consider the investment objectives, risks, and charges and expenses associated with 529 plans prior to investing. Additional information about 529 plans is available in the issuer’s Official Statement which should be read prior to investing. A copy of the Official Statement can be obtained by contacting your financial advisor or by calling 800-634-1100.

    Prior to investing, 529 plan investors 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 qualified tuition program. By investing in a plan outside your state of residence, you may lose available state tax benefits. Make sure you understand your state’s tax laws to get the most from your plan. 529 college savings plans allow earnings to accumulate tax-free until withdrawn and withdrawals for qualified higher-education expenses are also tax-free. If you make a withdrawal for any other reason, the earnings portion of the withdrawal will be subject to both state and federal income tax, and possibly a 10 percent federal tax penalty.

  2. Consult your tax attorney or advisor.

  3. Combined contributions for a beneficiary cannot exceed the plan’s per-beneficiary limits.

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Investment and insurance products and services including annuities are:
Not a deposit • Not FDIC insured • May lose value • Not bank guaranteed • Not insured by any federal government agency.

Please refer to our Terms and Disclosures.

Brokerage and investment advisory services offered by UnionBanc Investment Services LLC, an SEC-registered broker-dealer, investment adviser, member FINRA / SIPC and subsidiary of U.S. Bancorp.

The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1-800‐289‐9999 or via https://brokercheck.finra.org. An investor brochure describing BrokerCheck is also available through FINRA.