Saving for College Using the New IRS Section 529 College Savings Plan Accounts

"What You Need to Know About Section 529: The Gift Plan A New Way to Invest for the Future" Wednesday, June 29, 2005 Topic Overview: THE PROBLEM: | Americans will spend $3 trillion on college tuition between now and 2020 | By 2020, a four-year college will cost $130,000 to $320,000 | 75% of individuals polled feel there is no way they can cover college expenses THE PROGRAM: Qualified State Tuition Program Defined Prepaid Plan Savings Plan 529 Gift Plan | Dedicated college planning tool | Tax-deferred growth (10% Non-qualified withdrawal penalty) | No participant income limits | Contributions up to $120,000 per beneficiary | Control of assets until pay-out | Estate planning benefits | Professional asset management/asset allocation THE SOLUTION: 529 Gift Plan Advantages | Use your investment at almost any accredited post-secondary school in the U.S. | Enjoy tax-deferred earnings growth and tax-advantaged withdrawals. | Remove assets from your estate but retain control: change beneficiaries or even make non-qualified withdrawals. Presented By: Anthony Gambacorta, Chief Investment Officer Preswick Capital Management, LLC