2020 Employee Benefits Book | Page 22

College Savings Plan — 529 This investment program is designed to help you save for future education expenses at almost any private or public college or accredited higher education institution. A 529 plan offers significant tax advantages because the money you deposit grows free from federal taxes, so any potential earnings accumulate faster. In addition, you won’t pay federal taxes when you withdraw the money to cover expenses for higher education, such as tuition, books, room and board and school fees. Fast Facts • Waived initial investment $3,000 • Total contribution limit is $370,000 • $50/month minimum contribution • No enrollment, transfer or commission fees • U-gift offers a convenient way for family and friends to contribute • U-promise services can add to your savings Did You Know? You can use 529 funds for qualified kindergarten through 12th grade expenses up to $10,000 per year per student. To learn more about the 529 College Savings Plan, go to vanguard.com and log into your account. Once logged in, click on the “Invest Outside Your Plan” link at the top of the page, then the “Save for College” link, or for more information, contact Vanguard’s Education Resource Center at 866-734-4533. For more information regarding Nevada’s 529 College Savings Program, go to nevadas529.com. 20