529 College Savings Plan | Streetlight Financial

529 College Savings Plan | Streetlight Financial
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529 College Savings Plan

Save for Future College Costs with this Tax-Advantaged Savings Plan
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Here's what you need to know

Simply put, a 529 college savings plan is a smart way to help meet the rising costs of education. 529 college savings plans offer significant tax benefits and an exceptional degree of control and flexibility. 529 plans can be used for virtually any public or private institution of higher education in the United States and even many abroad.
 

The Scholars Choice 529 college savings plan can help your family save for college, graduate school, vocational and private schools.
 

By investing in this plan, your investments will grow tax-deferred, and withdrawals used for qualified educational expenses are not subject to federal income tax. In addition, you maintain ownership and control how the money is used. 529 plans offer an exceptional array of tax benefits, flexibility, and control.

The Scholar’s Choice 529 savings plan offers you exceptional benefits in saving for higher education needs:

 

  • Flexibility Anyone can contribute to 529 plans –parents, grandparents, uncles, aunts, etc. You can use your funds from the Plan at any accredited in-state, out-of-state, or international institution.
  • Federal Tax The contributions are after-tax (not deductible for income tax purposes). The investment grows tax free and withdrawals are tax free if utilized for the beneficiary’s accredited educational programs.
  • High contribution limits Maximum limits are in excess of $400,000. Enables the accumulation of enough assets to cover the entire cost of college.
  • Low maintenance Provides a hands-off way to save for college.
  • Control The individual, not the beneficiary, has control over how the money is used.
  • Estate Planning 529 plan assets are excluded from one’s estate and not subject to estate taxes. Individuals can contribute up to $16,000 ($32,000 for married couples) per beneficiary without incurring federal gift tax.
  • No Load Program The Plan uses special Employer-Sponsored investment options with no sales charges.
You can enroll anytime! 

These form(s) are in Adobe Acrobat Reader (PDF) format and are available for downloading and printing.

 

Scholars Choice Enrollment Guide

 

Scholars Choice Account Application

 

Scholars Choice Pay-For-School Playbook

 

Scholars Choice Rollover Form

How It Works

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Tax-Advantaged Accumulation for Education

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Portable Benefit after Baystate Employment

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Personalized Advisor Service Available

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Open Enrollment All Year

Enroll today to save for future college costs.

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Frequently Asked Questions

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  • What is a 529 plan?
    A plan operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training for a designated beneficiary, such as a child or grandchild.
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  • What is the main advantage of a typical 529 plan?
    Earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of the designated beneficiary, such as tuition, fees, books, as well as room and board. Contributions to a 529 plan, however, are not deductible.
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  • Who is eligible?
    All Baystate employees can participate. Team members can work directly with the plan provider to establish payment systems through their personal bank account.
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  • What if my employment status changes?

    If you leave your company, your account will stay in place and you will continue to have access to the institutional pricing. You will continue to make contributions to the plan on an individual basis.
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  • What happens to the funds if the beneficiary doesn’t go to college?
    The beneficiary can be changed to anyone including the donor. If there is no use for the funds for any beneficiary on an accredited program, funds can be withdrawn and all of the earnings are then taxable. Since the contributions were taxed on the front end, only the earnings will be taxable.
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  • Can I change the beneficiary of a 529 plan I have set up?
    Yes. There are no tax consequences if you change the designated beneficiary to another member of the family. Also, any funds distributed from a 529 plan are not taxable if rolled over to another plan for the benefit of the same beneficiary or for the benefit of a member of the beneficiary’s family. So, for example, you can roll funds from the 529 for one of your children into a sibling’s plan without penalty.
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  • Are there contribution limits?
    Yes. Contributions cannot exceed the amount necessary to provide for the qualified education expenses of the beneficiary. If you contribute to a 529 plan, however, be aware that there may be gift tax consequences if your contributions, plus any other gifts, to a particular beneficiary exceed $15,000 during the year. For information on a special rule that applies to contributions to 529 plans, see the instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

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Phone Number: 1-800-000-0000

 

 

 

 

  • Legal Disclaimers
    An investor should consider the Program’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at scholars-choice.com/PDS, which contains more information, should be read carefully before investing. If an investor and/or an investor’s beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits such as financial aid, scholarship funds, and protection from creditors that are only available to state taxpayers investing in such plans.Investments in the Scholars Choice College Savings Program are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of Colorado, CollegeInvest, QS Investors, LLC, Legg Mason Investor Services, LLC, or Legg Mason, Inc. or its affiliates and are subject to investment risks, including loss of principal amount invested.Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.Scholars Choice is a registered service mark of CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks. Administered and issued by CollegeInvest, State of Colorado. QS Investors, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Program; together they serve as Manager of the Program. QS Investors, LLC, ClearBridge Investments, LLC, Brandywine Global Investment Management, LLC, Western Asset Management Company, and Legg Mason Investor Services, LLC are Legg Mason, Inc. affiliates. Thornburg Investment Management, Inc. and Templeton Global Advisors Limited are not affiliated with Legg Mason, Inc.

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