The cost of a college education is high and on the rise, but the TD Ameritrade 529 College Savings Plan can help you systematically and smartly put aside money to help pay for it down the road. Use this guide to see if the TD Ameritrade 529 College Savings Plan may be right for you.
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 pre-determined 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.
In comparison with other tax-deferred college savings accounts, 529 Plans offer investors more flexibility.
Investment Choices: The TD Ameritrade 529 College Savings Plan offers a range of investment choices, including core and socially aware options for age-based and static investment choices, as well as individual choices covering a variety of asset classes.
Straightforward Pricing: There are no enrollment, annual maintenance, withdrawal/transfer, or investment change fees.*
Non-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Growth: Money in your account grows tax-deferred while in the account and are free from federal and state taxes when withdrawn for qualified higher education expenses.1
When you open a TD Ameritrade 529 College Savings Plan, you'll have access to a range of investment choices to select from, including portfolios with funds from some of the most well-known fund families. TD Ameritrade 529 College Savings Plan offers three different investment options:
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.
Visit our Form Library and sort by 529 College Savings Plan to download and print important TD Ameritrade 529 College Savings Plan forms, agreements, PDF applications, and disclosures.