There are many ways for families to save for college — many with federal tax advantages. But 529 college savings accounts are unique because they are state-sponsored with additional state tax benefits and flexibility. As long as the investment is used for qualified expenses at an accredited school, the money earned is completely tax-free. 

Key Features

  • Earnings have the potential to grow tax-deferred, although contributions are not deductible on your federal tax return.
  • Qualified distributions are free from federal tax
  • Withdrawals are Federal income tax-free if used for qualified higher education expenses like tuition, books and room and board.1
  • No income restrictions
  • Contribution flexibility: anyone can contribute money and high contributions are permitted
  • Account owner maintains control of the assets, regardless of the student’s age

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Additional Resources

 

This material is provided for general and educational purposes only; and is not intended to provide legal, tax or investment advice.  All investments are subject to risk.  We recommend that you consult an independent legal or financial advisor for specific advice about your individual situation.

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

Investors should carefully consider the investment objectives, risks and charges and expenses of 529 plans and their underlying funds before investing. This and other information can be found in the Program Description or other disclosure documents of the 529 Plan. You may obtain this information from the programs’ administrators or your financial professional. Please read this information carefully before investing or sending money.

Tomorrow's Scholar is Wisconsin's state-sponsored college savings plan administered by the College Savings Program Board and the State of Wisconsin. Voya Investment Management (Voya IM) provides investment management and administrative services for the Tomorrow's Scholar plan. Shares in the program are distributed by Voya Investment Management.

The IAdvisor 529 Plan is offered by the Iowa Educational Savings Plan Trust, a trust organized under Iowa law and administered by the Iowa State Treasurer’s Office. The Treasurer of the State of Iowa is responsible for overseeing the administration of the IAdvisor 529 Plan. Voya Investment Management (Voya IM) provides investment management and administrative services for the IAdvisor 529 Plan. Shares in the program are distributed by Voya Investments Distributor, LLC, Member FINRA/SIPC.

Before investing, the investor should consider whether the investor's or beneficiary's home state offers any state tax or benefits available only from that state's 529 Plan.

Securities offered through Voya Financial Advisors, Inc. member SIPC.

Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation

1 Non-qualified withdrawals may be subject to federal and state taxes and an additional federal 10% tax