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Get familiar with the basics of the 529 Plans and your options for investing for your child’s college education.

Understanding the Basics

529 Plans are state-sponsored, tax-deferred savings accounts that allow investors to save for the costs of higher education, regardless of income. The plan gives investors the opportunity to invest in predetermined investment portfolios across multiple asset classes. Most plans have rules on how you can allocate your assets based on your child’s age-generally getting less aggressive as he or she approaches college age.

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Benefits of the TD Ameritrade 529 College Savings Plan

In comparison with other tax-deferred college savings accounts, 529 Plans offer investors with more flexibility.

  • Investment Choices -The TD Ameritrade 529 College Savings Plan offers a range of investment choices, including age-based and static investment choices, as well as individual investment choices covering a variety of asset classes.
  • Straightforward Pricing -There are no enrollment, annual maintenance, withdrawal/transfer, or investment change fees.*
  • No Proprietary Funds -Find comfort in knowing that your plan’s investment comes from objective, professional third-party research.
  • Tax-Deferred Growth -Money in your account grows tax-deferred while in the account and are free from federal and state taxes when withdrawn for qualified higher education expenses.1
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The TD Ameritrade 529 College Savings Plan Investment Options

When you open a TD Ameritrade 529 College Savings Plan, you’ll have access to a range of investment choices to choose from, including portfolios with funds from some of the most well-known fund families. TD Ameritrade offers three different investment options:

  • Age-Based Investment Option -These options are designed to reduce your portfolio’s exposure to loss of principal as the beneficiary nears college age. Choose from conservative, index, growth, or aggressive asset allocations.
  • Static Investment Option -These options allocate  your assets into a set domestic equity, real estate, international equity, fixed income, or money market funds over the life of the account. Choose from growth, balanced index, or conservative asset allocations.
  • Individual Investment Option -You can allocate your investments among 17 different individual investment choices among different asset classes. With each individual fund subject to some risk exposure, your overall portfolio performance may be more volatile than Age-Based and Static Investment Options.
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Developing a Strategy

Like any other investment, 529 Plans are subject to market risks, and returns are not guaranteed. So it’s important to consider more conservative investments if you have a short time to save, especially if your child is near the beginning of his or her college education. To protect your investment and your child’s education, consider your investment goals and objectives, as well as your tolerance for market volatility and investment risk when selecting your investments.

In addition to 529 Plans, there are several other college savings choices you may want to explore. These include Coverdell Education Savings Accounts and UGMA/UTMA Custodial Accounts.

Download and print important TD Ameritrade 529 College Savings Plan forms, agreements, PDF applications, and disclosures from the list below. To view and print files properly, please be sure to install Adobe® Reader . Our Web-based forms can be completed online and submitted via mail after signing.

Account Features Form

Account Information Change Form

Additional Contribution Form

Beneficiary Change Form

Cancel/Modify Account Features

Enrollment Form

Incoming Rollover Form

Investment Option Change

Organization Resolution Form

Payroll Direct Deposit

Program Disclosure Statement

Withdrawal Request

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Market volatility, volume and system availability may delay account access and trade executions.

Educational resources are provided for general information purposes only and should not be considered an individualized recommendation or advice.

TD Ameritrade does not provide tax advice.

1 Withdrawals used to pay for qualified higher education-related expenses are free from federal and Nebraska state income tax. These expenses include tuition, fees, books, supplies, and equipment required for enrollment at an Eligible Educational Institution. Room and board is considered a qualified education-related expense if the student is enrolled on at least a half time basis. The earnings portion (if any) of a Non-Qualified Withdrawal will be treated as ordinary income to the recipient and may also be subject to an additional 10% federal tax.

The TD Ameritrade 529 College Savings Plan (the "Plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The Plan offers a series of investment portfolios within the Nebraska Educational Savings Plan Trust (the "Trust"), which offers other investment portfolios not affiliated with the Plan. Nebraska Educational Savings Plan Trust serves as Issuer. The Plan is intended to operate as a qualified tuition program to be used only to save for qualified higher education expenses, pursuant to Section 529 of the U.S. Internal Revenue Code.

An investor should consider the Plan’s investment objectives, risks, charges and expenses before investing.  The Program Disclosure Statement at collegesavings.tdameritrade.com, which contains more information, should be read carefully before investing. 

Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation. 

This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws.  This material is not an offer to sell or a solicitation of an offer to buy any securities.  Any offer to sell units within the Plan may only be made by the Program Disclosure Statement and Participation Agreement relating to the Plan.

TD Ameritrade does not provide tax advice.  Every individual’s tax situation is different, and it is important to consult a qualified tax advisor regarding the application of the Plan’s benefits to your own individual situation.

Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution. 

Investments in the TD Ameritrade 529 College Savings Plan are not guaranteed or insured by the FDIC,SIPC or any other government agency, and are not deposits or other obligations of any depository institution.  Investments are not guaranteed or insured by the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha or TD Ameritrade, or their authorized agents or their affiliates, and are subject to investment risks, including loss of the principal amount invested. 

Investment Products: Not FDIC Insured – No Bank Guarantee – May Lose Value

Nebraska Educational Savings Plan Trust Issuer

Nebraska State Treasurer Trustee

Nebraska Investment Council Investment Oversight

First National Bank of Omaha Program Manager

First National Capital Markets Distributor, Member FINRA,SIPC

TD Ameritrade, Inc. Sub-administrator

First National Capital Markets and First National Bank of Omaha are affiliates.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

Brokerage services provided by TD Ameritrade, Inc., member FINRA/ SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2018 TD Ameritrade.