Why consider a 529 plan?
With college costs rising significantly faster than inflation, proactively saving for higher education is essential to support your loved ones' educational goals. While there are multiple ways to save, investing in a 529 College Savings Plan stands out as an attractive option because its flexibility: was specifically designed to address education funding needs due to its unique combination of:
- Anyone is eligible to contribute since there are no income limitations.
- No annual contribution limits, only a high maximum allowed account balance.
- Account owner retains control over assets, even after the child reaches the age of majority.
- Account beneficiaries can be changed by the account owner to an eligible family member at any time.
- Assets can be used for many types of higher education expenses at accredited colleges, universities, vocational schools, and can even be used to fund some K-12 expenses.
- Offered by most states in the U.S so many programs to choose from within one’s own state or another, all of which offer multiple investment options.
Key Features of a 529 Plan
| Features | Description |
|---|---|
Tax advantages | Earnings grow tax-deferred, and qualified withdrawals are generally tax-free. Some states offer tax deductions or credits on contributions. |
Estate planning | Contributions qualify for annual gift-tax exclusions and accelerated gifting options. |
Retirement planning | Excess money can be rolled over to the beneficiary’s Roth IRA. |
How UBS can help you
Your UBS Financial Advisor can help you:
- Understand the tax advantages and implications of a 529 plan.
- Select an appropriate 529 program based on your goals and financial situation.
- Develop a comprehensive education savings strategy.
- Integrate your education savings plan into your broader wealth management strategy.
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As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business, and that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. For more information, please review client relationship summary provided at ubs.com/relationshipsummary, or ask your UBS Financial Advisor for a copy.
All 529 Plan provisions, including plan minimums, fees, expenses, requirements, features and benefits vary by state. Before you invest in a Section 529 plan, request the plan’s official statement from your Financial Advisor and read it carefully. The official statement contains more complete information, including investment objectives, charges, expenses and risks of investing in the 529 plan, which you should consider carefully before investing. You should also consider whether your home state or your beneficiary’s home state officers any state tax or other benefits that are only available before you investments in such state’s 529 plan. Section 529 plans are not guaranteed by any state or federal agency.
2025-1913801
Review Code: 4601979 Expiration date: 06/21/2026
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This material is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions. The views and opinions expressed may not be those of UBS Financial Services Inc. UBS Financial Services Inc. does not verify and does not guarantee the accuracy or completeness of the information presented. UBS Financial Services Inc., its affiliates and its employees are not in the business of providing tax or legal advice. Clients should seek advice based on their particular circumstances from an independent tax advisor.