The Columbia Management Future Scholar 529 College Savings Plan

Maximize the benefits of a 529 plan

As college costs continue to rise, now may be the best time to consider the benefits of a 529 college savings plan. A qualified tuition savings plan under Section 529 of the Internal Revenue Code, a 529 college savings plan provides investors with a smarter way to plan for a child’s college education, offering tax advantages, gifting and estate planning benefits, flexibility and control.

  • You can contribute up to $14,000 per year ($28,000 for married couples), per beneficiary, without triggering federal gift taxes
  • A special five-year forward gifting provision allows for larger gifts that are also gift-tax-free
  • Contributions are considered completed gifts and are removed from your taxable estate, while you as the account owner still maintain control of the assets in the account
  • Earnings grow exempt from federal taxes, and in many states, also state income taxes

 

Columbia Management has the tools you need

The Columbia Management Future Scholar 529 College Savings Plan provides investors with all of the important benefits of a 529 plan, while also offering:

  • An expanded, multi-managed investment lineup
  • Low fees – it’s one of the lowest-cost advisor-sold plans in the country
  • A high contribution limit of $370,000
  • Joint ownership of accounts
  • A program led by a stable, well-known asset manager – Columbia Management

 

Benefits for South Carolina taxpayers

The Future Scholar 529 Plan is sponsored by the South Carolina Office of the State Treasurer and offers South Carolina taxpayers additional tax advantages. Contributions up to the maximum account limit of $370,000 per beneficiary are tax deductible from a client’s South Carolina state income taxes.2

 

 

Financial professionals:

Take a deeper look at the Future Scholar 529 Plan.

 

1 Withdrawal of earnings not used for qualified higher education expenses will be subject to federal and possibly state and local income tax and may be subject to an additional 10% penalty.

2 Contributions to a Future Scholar account are tax deductible for South Carolina residents. If you file a resident or non-resident South Carolina tax return, you may be eligible to deduct your Future Scholar contributions from your South Carolina state income tax return, up to the maximum account balance limit of $370,000 (or any lower limit under applicable law). When you withdraw money to pay for qualified higher education expenses, you pay no South Carolina state income tax on your withdrawals. Grow any potential earnings on contributions state- and federal-income-tax-free while invested in their account.

 

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ACCOUNT ACCESS

Check your 529 account balances, update your account details and manage investments.

 

Benefits of a 529 Plan

Ted Truscott

Learn about the importance of 529 plans from Columbia Management CEO Ted Truscott.