Top Reasons to Save

SMART529 can help put you on the course to saving for college. It’s easy to see why it’s a SMART start! There is no minimum initial investment, and there are portfolio options that seek to suit any family's goals or needs.

Some of the reasons our account holders opened a SMART529 account, are:

 

Growth Potential

  • Invest in portfolios that have the potential to keep pace with rising college costs
  • Choose between portfolios designed for a range of risk tolerances and time horizons

 

Tax Benefits

  • Withdrawals for qualified higher education expenses1 are free from federal tax, as well as West Virginia personal income tax2
  • Contributions made by December 31st each year can be used as a modification, reducing your federal adjusted gross income for West Virginia personal income tax purposes. The state tax deduction is subject to recapture for non-qualified distributions.

     

Flexibility

  • There are no set time limits for contributions, or for using account assets
  • Money can be transferred tax-free between any on the investment options twice per calendar year and investment allocations for new contributions can be changed at any time

     

Eligibility

  • Parents, grandparents, other adults and businesses are all eligible to open an account.  You can even open an account for yourself.
  • The account beneficiary can be of any age
  • Either the account owner or the account beneficiary must be a West Virginia Resident.3

 

Account Owner Control

  • Change your account beneficiary to an Eligible Family Member4 of the current account beneficiary if you desire
  • Maintain complete control of the account even after the beneficiary turns 18
  • Access funds in your account at any time

 

1 Qualified Higher Education expenses include room and board, required supplies and equipment, books, tuition and fees

2 Non-qualified withdrawals are taxable as ordinary income to the extent of earnings, and may also be subject to a 10% federal income tax penalty and a withdrawal charge. Such withdrawals may have state income tax implications.

3 For the definition of “West Virginia resident,” please see the Offering Statement

4 For the definition of “Eligible Family Member,” please see Offering Statement



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