529 College Savings Plans

If you are concerned about investing enough money to send your child or grandchild to college, you'll want to know about this powerful, tax efficient way to plan for higher education.

Named for the section of the tax code that governs them, 529 College Savings Plans were created by Congress to help parents and grandparents set aside education money for their children or grandchildren while enjoying tax advantages and growth potential that aren't available with traditional savings accounts.

Here are some important benefits of this program:

• Tax advantages: Your investments grow without any federal income tax on the earnings and can be withdrawn tax-free if used for qualified education expenses.
• Any institution in the U.S.: Your assets can be used at any accredited institution of higher learning in the U.S.
• No income limits: There are no income limits restricting who is eligible to invest.
• Low minimum investments: Because you can open an account with virtually any amount, it's easy to start today.
• Investment choices: You have access to various investment options based upon your risk preferences.
• Contributions eligible for gift tax exclusion: You may generally contribute up to $55,000 ($110,000 for married couples) per beneficiary in a single tax year without gift tax consequences, provided you do not make any gifts to that beneficiary over a five-year period.
• Contributions are excluded from taxable estate: Funds contributed are considered complete gifts for federal gift and estate tax purposes and are excluded from your taxable estate.

There are so many reasons to consider a 529 College Savings Plan. The best way to start is to schedule an appointment with your HSBC Securities Financial Advisor , an experienced investment professional who will show you how a 529 College Savings Plan can fit into a total family plan for your child's or grandchild's education. Visit your local branch or call 1-800-662-3343.