Compare College Investment Programs
 

College Investment Program

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Uniform Gift to Minors Act (UGMA) Uniform Transfer to Minors Act (UTMA)
Contribution Limits None.
Account Control Custodian. Beneficiary assumes control of the account once beneficiary reaches age of majority. (In Alabama, age of majority is 18 for married persons, 19 for single persons. Age of majority varies by state.)
Tax Benefits Income and earnings in excess of standard deduction are taxed annually at child’s tax rate (special rules apply for children under the age of 14).
Income Limitations None.
Investment Options Variety of options.
Custodian is responsible for making changes to asset-allocation mix.
Ability to Change Beneficiary No.
Conditions for Use Must be used for the child’s benefit.
Gift and Estate Planning Benefits Contributions are treated as a completed gift from the contributor to the beneficiary.
Advantages No income restrictions.
Anyone can contribute to the account.
Disadvantages No tax-deferred growth.
Student gains control of money at age of majority.
No five-year accelerated gift tax exclusion.




 

  
           
   
 
 
   
 


An investor should consider the investment objectives, risks, charges, expenses and tax consequences associated with the Program before investing. All of this information is contained in the Program Disclosure Statement. Please read it carefully before investing. For a copy, call 866.529.ACCT (2228) or visit www.treasury.alabama.gov.

If you or your beneficiary are not Alabama residents, consider whether your home state or the home state of your designated beneficiary offers a Qualified Tuition Program that provides state-tax or other benefits only available through your home state’s Qualified Tuition Program.

The Program is offered by the State of Alabama and is designed to be a Qualified Tuition Program under Section 529 of the Internal Revenue Code. The FDIC, the State of Alabama, the Treasurer of the State of Alabama, the Board of Trustees of the Program Trust Fund or any other federal or state governmental agencies do not insure or guarantee accounts and investments under the Program. Van Kampen Funds, Inc. is the underwriter for the Program. The Program is also offered through independent distributors that have selling agreements with Van Kampen Funds Inc., which serves as an independent distributor for the Program.

Van Kampen and the State of Alabama’s Treasurer’s office do not render tax or legal advice. This material was not intended or written for—and cannot be used by—any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Please consult your tax advisor regarding your individual situation.