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Before investing in a 529 plan, consider whether the state where you or your Beneficiary resides has a 529 plan that offers favorable state tax benefits that are available if you invest in that state's 529 plan.
529 college savings plans are offered and administered by a state. Consider the investment objectives, risks, charges and expenses before investing in a state 529 college savings plan. Read the Disclosure Booklet available on each state's 529 plan website containing this and other information carefully. Investments in a state 529 college savings plan are neither insured nor guaranteed and there is risk of investment loss.
Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for the plans managed under TFI.
That’s not all. We’re a leading manager of retirement plans, committed to the financial well-being of all our customers since 1918. With today’s economic climate, people and institutions are looking for a trusted firm they can rely on for a unique combination of advantages. At TIAA, we make you feel good about your financial well-being. For over 100 years, we’ve been listening to you, advising you, and helping you feel confident about making financial decisions for now and for the future.
TIAA-CREF Tuition Financing, Inc. (TFI) is a leading provider of services to state 529 college savings plans and currently acts as Plan Manager for 9 college savings plans across the country. TFI is an indirect wholly owned subsidiary of TIAA.
College costs are rising. TIAA managed college savings plans can help families prepare for college. We’re a leader in helping the academic, medical, cultural, governmental and research fields plan for retirement and life’s other goals.
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, is distributor and underwriter for the plans managed by TIAA-CREF Tuition Financing, Inc.
Our team of TIAA College Savings Consultants is available to answer all of your questions as you consider and compare 529 college savings plans.
The biggest benefit of 529 plan accounts is that they can provide sizable tax advantages. At the federal level, your contributions can grow tax free. When you withdraw the money to pay for your child’s or loved one’s qualified college expenses, you pay no taxes on any earnings. There are no tax forms to bother with until you start making withdrawals.
The same is true at the state level: 529 plan accounts incur no state taxes while the account balance grows or when you make qualified withdrawals. A number of states also let you deduct your annual contribution against your income, potentially lowering your state tax bill. Every state plan is different, so be sure to evaluate the benefits of the plan in your state. You can purchase a 529 savings plan from any state and use it in any state.