A 529 Plan makes investing for your child’s education simple and affordable. Build an investment strategy that is right for you—let tax-advantaged investing help you put more money toward that diploma.

A Simple Solution
With low minimum investment requirements, no account or brokerage fees, easy deposit and withdrawal procedures, and easy-to-pick Years to Enrollment Portfolios, the Alabama Higher Education 529 Fund simplifies the investment process for you.

Your Student Picks the University
Proceeds from the Alabama Higher Education 529 Fund can be used nationwide, at many accredited universities, colleges or trade schools—including graduate schools—for all qualified higher education expenses.

Enjoy Tax Advantages
Your investment in the plan can grow tax-deferred, so gains on an investment in the plan are exempt from annual federal and state income taxes. When your student is ready to withdraw money for tuition, fees, books, supplies, or room and board, the withdrawals are exempt from federal and state income taxes. That means more of your investment goes where it should—to your student’s education.

Please note: Withdrawals for non-qualified expenses may be subject to federal taxes as well as a 10 percent early-withdrawal penalty. For non-Alabama residents, if the investor or the beneficiary resides in or pays income taxes to a state that offers its own 529 college savings or pre-paid tuition plan, that state may offer state or local tax benefits, but only for participation in such in-state plan.

Flexible Investment Options
Our carefully crafted Years to Enrollment Portfolios are based on asset-class models developed in conjunction with Ibbotson Associates, a leading authority on asset allocation. And if you prefer to create your own asset mix, we also offer Fixed Portfolios and Individual Fund Portfolios. You have the freedom to select the investment options that are best for you.

Give a Gift, Build a Legacy
Contribute up to $12,000 annually per beneficiary—or $24,000 for married couples filing jointly who elect to split gifts—without filing a gift-tax form or paying gift taxes. You should be aware, however, that contributions to the plan are treated as a gift to the beneficiary for gift and generation-skipping transfer tax purposes, particularly if you are making other gifts to the beneficiary during the same year. Also, please keep in mind that gift-giving limits are subject to certain exceptions. The new beneficiary must be a member of the family of the previous beneficiary, as defined by Section 529 of the Code and the program disclosure statement, to avoid federal income tax consequences. Certain changes may result in gift and generation-skipping transfer taxes.

Maintain Control of Your Investment
You, the account owner, can decide when withdrawals are made, and you can also change the beneficiary at any time—provided the new beneficiary is a family member of the original beneficiary. Even after your student turns 18, you, the donor, remain in control. Also, as an Alabama resident, you can invest in the program directly—without paying sales charges, enrollment or ongoing maintenance fees.