IRAs | 529 College Savings Plans



Whether you are saving for your loved ones or for yourself, you need your money to work hard for you.





An Individual Retirement Account is a personal retirement vehicle which permits eligible individuals to invest both tax deductible and nondeductible contributions with the benefit of tax deferral1. Roth IRAs allow for tax-free distributions and avoid some restrictions as to when distributions must be made. IRAs also provide the flexibility to choose investment vehicles that suit an investor’s objectives/needs. Registered representatives can assist you in determining the best strategy for your retirement planning.


529 plans can be one of the most attractive ways to help a loved one save and pay for college. There are two types of 529 plans: pre-paid tuition plans and college savings plans. They both offer special tax and gifting benefits and provide great flexibility and control to the donor. 529 plans are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

Whether you are saving for your loved ones or for yourself, you need your money to work hard for you to keep up with the rising costs of education.

529 plans offer:

• tax-deferred growth - your earnings grow with federal taxes deferred helping you build savings over time;

• tax-free withdrawals - you can make withdrawals for qualified educa- tional expenses such as tuition, fees, books, on and off campus room and board, and even certain expenses for special needs students, all free from federal income tax2.

Before investing, investors should consider whether the investor’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Investors should also con- sider the investment objectives, risks, charges, and expenses associated with municipal fund securities. Information regarding municipal fund securities is available in the issuer’s official statement.

1 There may be statutory penalties on early withdrawals from Individual Retirement Accounts before the age of 59-1/2.

2 Tax provisions allowing for federal income tax-free withdrawals for qualified expenses will expire on 12/31/10 unless extended. State laws and treatment will vary. Earnings on non-qualified distributions will be subjected to a 10% penalty.