529 College Savings Plans offer one solution with many rewards. With their
low-cost structure and, in some states, the added value of state income tax
deductions, 529 plans can be very attractive for the fee advisor. 529
plans can also be good estate planning tools with advanced gifting possibilities.
And unlike UGMAs or UTMAs, the account owner always retains control
of the assets. Finally, with the change in tax law, the earnings, when used for
qualified expenses from these plans, are federal and state income tax free. The law allowing federal income-tax free qualified withdrawals is set to expire on December 31, 2010. Congress may or may not extend the law beyond this date.
TIAA-CREF Tuition Financing, Inc. (TFI), a part of TIAA-CREF group of companies, has become one of the leading providers of state-sponsored college savings plans. TFI provides program management for the State-Sponsored Missouri and Mississippi Advisor-sold College Savings Plans, which feature a
range of investment options and flexible compensation.
TFI currently also provides program management for 12 state-sponsored
direct-sold College Savings Plans - California, Connecticut, Georgia, Idaho, Kentucky, Michigan, Minnesota, Mississippi, Missouri, Oklahoma, Tennessee, and Vermont.
Adding value are the state income tax deductions for eligible residents of Missouri, Michigan, Mississippi, Idaho, Georgia, and Oklahoma. Each state establishes its own portfolio of investment options.
Investors should consider the investment objectives, risks, charges, and expenses before investing in a 529 college savings plan. Contact 877 ADVS-529 for a disclosure booklet containing this information. Read it carefully.
Before investing in a 529 college savings plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.
The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. It was written to support the promotion of TIAA-CREF Managed 529 plans. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
TIAA-CREF Tuition Financing, Inc. (TFI) is the program manager and Teachers Personal Investor Services, Inc. is the primary distributor.
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