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College Savings Plans

Union Bank and UnionBanc Investment Services can help you save for college. Tax-deferred growth of contributions to 529 College Savings Plans###DISCLAIMER:2_0 529 Plan### or Coverdell Education Savings Accounts may help you meet the challenge of rising education costs.

529 Plans

Available through UnionBanc Investment Services, and with no IRS-imposed income restrictions on participation, 529 College Savings Plans are one of the few income-tax-advantaged programs available for middle- to upper-income families. You and other family members can enjoy important income- and estate-tax benefits###DISCLAIMER:2_0 Tax Advisor - 1### while setting aside significant savings to help you reach your goal:
  • Savings grow tax-deferred, and qualified withdrawals are free of federal income tax. Non-qualified withdrawals are subject to federal income taxes.###DISCLAIMER:2_0 529 Plan### 
  • Contributions from parents, grandparents, other relatives, even friends can be excludable for federal gift- and estate-tax purposes###DISCLAIMER:2_0 Combined Contributions### 
  • If having a high income has prevented you from taking advantage of tax-favored plans in the past, you may find 529 plans to be an appealing solution
  • You can contribute annually up to $15,000 per account for individuals, or $30,000 if married or making joint contributions. You can also accelerate five years’ worth of gift-tax exclusions upfront for $75,000, or $150,000 if married
  • High maximum contribution limits (some in excess of $400,000) let you quickly accumulate substantial tax-deferred savings
  • Choose from a menu of professionally managed investment portfolios
  • Although plans are state-sponsored and there may be benefits from choosing a plan within your state of residence, there are no restrictions on residency or choice of accredited colleges.###DISCLAIMER:2_0 529 Plan###
  • Use plan funds for a variety of education expenses at accredited institutions nationwide
  • Funds may be used to educate another family member if a child doesn't go to college
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 carefully 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.

Coverdell Education Savings Accounts

These tax-advantaged savings accounts, available through Union Bank###DISCLAIMER:2_0 UBIS Bank Products FDIC Insured###, and UnionBanc Investment Services brokerage accounts, also let you bolster your college savings plan. You can contribute up to a maximum $2,000 per year per child (subject to IRS-imposed income restrictions):
  • Savings grow tax-deferred, and qualified withdrawals can be tax-free
  • You direct how your savings will be invested
  • Use savings for qualified elementary and secondary education expenses, as well as for college
  • You may transfer unused funds to another family member
  • There is no set-up or annual fee

What Are Your Education Goals?

A Financial Advisor at UnionBanc Investment Services can help you explore your options and set up a 529 College Savings Plan or Coverdell account or both to fit your needs. Visit the Investment Center in your nearest Union Bank branch or call 1-800-634-1100.
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