529 College Savings Plan
Be ready for college when they are.
Saving for college is one of the biggest financial undertakings most families will face. A 529 College Savings Plan is a tax-advantaged college savings investment account operated by a state or educational institution.
- Earnings grow tax-free
- Tax-free withdrawals when used for expenses at qualified U.S. institutions of higher learning
- Account can be opened for anyone and anyone can contribute to the plan
- No age limit for using the funds
Consult your tax advisor.
Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. Member FINRA, Opens in a new window/SIPC, Opens in a new window.
- Anyone 18 or older can open a 529 College Savings Plan.
- There are no state residency requirements.
- Funds can be used at any accredited school eligible to accept federal financial aid.
Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. Member FINRA, Opens in a new window/SIPC, Opens in a new window.
Contributions
- No annual limit. However, most state plans impose high lifetime limits on the amounts allowed in an account. Further, contributions are subject to federal gift tax laws, and excess contributions could result in gift tax implications.
Withdrawals
- Withdrawals made for qualified education expenses, such as tuition, room and board and books are not subject to taxes.
- If the purpose of the withdrawal is not for qualified educational expenses, the earnings portion of the withdrawal will be subject to state and federal income tax, as well as an additional 10% penalty.
Consult your tax advisor.
This information is for educational purposes only. Seek professional advice prior to investing.
Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. Member FINRA, Opens in a new window/SIPC, Opens in a new window.
Tax-deferred earnings — You don’t pay taxes on earnings while the money is in the account.
Tax-free withdrawals—You don’t pay federal taxes on money you take out of the account as long as it is used to cover qualified expenses for higher education.
Consult your tax advisor.
This information is for educational purposes only. Seek professional advice prior to investing.
Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. Member FINRA, Opens in a new window/SIPC, Opens in a new window.
Still have questions?
Call us to open an account
1.888.FC DIRECT
(1.888.323.4732)
Representatives available 7:00 a.m. to 11:00 p.m. Eastern time, 7 days a week
Or, visit your local branch
Still have questions?
Call us to open an account
1.888.FC DIRECT
(1.888.323.4732)
Representatives available 7:00 a.m. to 11:00 p.m. Eastern time, 7 days a week
Or, visit your local branch
Additional Information
Questions?
Or call
1.888.FC DIRECT (1.888.323.4732)
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