529 College Savings Plans

529 College Savings Plans

Looking for an easy way to invest in a child’s future? Cambridge Appleton Trust has contracted with Advest, Inc.¹ -- a leading regional financial services firm -- to deliver the new, improved 529 College Savings Plans, one of the smartest ways to save for college.

Unlike other college savings plans, 529 College Savings Plans offer -

• Tax benefits. Your contributions and earnings will grow tax-deferred. And when it’s time for the beneficiary to attend school, you can make withdrawals for qualified expenses free from federal taxes² and often free from state taxes.

• Higher contribution limits. You can invest as little as $15 per month for some plans or, depending upon the program you select, you may invest a lump sum and contribute periodically until your total assets in one account equal $305,000. And, you can utilize as much as $55,000 in any five-year period without exceeding the federal gift tax exclusion.

• No income or age restrictions. You can set up a plan for anyone, including yourself. There are no restrictions for plan owners or beneficiaries.

• Control of plan assets. You control the assets in the 529 Plan. And, if the beneficiary doesn’t attend college, you can change beneficiaries and even designate yourself as a beneficiary if you plan to attend school.

• Flexibility. Funds can be used at any accredited institution of higher learning in the United States and select foreign institutions.

• Estate planning benefits. Your contributions and earnings are considered gifts for federal gift and estate tax purposes, and are not usually included in your taxable estate. For more information on tax consequences, consult your tax advisor.

• Investment choices to meet your needs.  529 College Savings Plans are state-sponsored plans invested in publicly-traded mutual funds or similar vehicles. Cambridge Appleton Trust has contracted with Advest, Inc., a broker-dealer with access to a wide array of 529 Plan offerings. A financial advisor from Advest will help you choose the options that meet your unique needs.

To determine how much you need to save to reach your college savings goal, go to our Savings Calculator.

For more information on how 529 College Savings Plans stack up against other college savings options, view our comparison chart. For answers to common questions, view our Frequently Asked Questions (FAQs). To arrange to speak with a financial advisor from Advest about your specific needs, simply call James O'Neil at (877) 332-2862 (toll free) or (617) 441-4250.

¹ Securities and insurance products are not bank products and are not insured or guaranteed by the FDIC, by any other government agency or by DIF. The market value of securities and mutual funds are subject to risk, may fluctuate in value, and may result in a loss of principal. Please review the prospectus carefully before investing or sending money. These Plans are offered by Advest, Inc., member NYSE, NASD, SIPC, an AXA Financial Company, One Federal Street, Boston, MA 02110.

²According to the Tax Relief "Act" of 2001, beginning on Jan. 1, 2002, withdrawals for qualified higher education expenses are free from federal income tax. State income taxes may continue to apply. The provisions exempting earnings on qualified withdrawals from federal income tax expire on 12/31/10, requiring the government to take some further action in order for these provisions to remain in effect after 12/31/10. For more information on tax consequences, consult your tax advisor.