Please remember there's always the potential of losing money when you invest in securities.
Before you invest in a Section 529 plan, request the plan's official statement and read it carefully. The official statement contains more complete information, including investment objectives, charges, expenses and risks of investing in the 529 plan, which you should consider carefully before investing. You should also consider whether your home state or your beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 plan. Section 529 plans are not guaranteed by any state or federal agency.
BofA Merrill Lynch Global Research is equity research produced by Merrill Lynch, Pierce, Fenner & Smith incorporated and/or one or more of its non-U.S. affiliates.
Any information presented about tax considerations affecting your financial transactions or arrangements is not intended as tax advice and cannot be relied on to avoid any tax penalties. Neither Merrill Edge®
nor its Financial Solutions Advisors provide tax, accounting or legal advice. You should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with your personal professional advisors.1
www.collegeboard.com, College Cost Calculator, as of December 2012. Assumes 6% college cost inflation rate.2
An automatic investment plan does not assure a profit or protect against loss in declining markets. Such a plan involves continuous investment in securities regardless of fluctuating price levels; Investors should carefully consider their financial ability to continue their purchases through periods of fluctuating price levels.3
To be eligible for favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for "qualified higher-education expenses," as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax, as well as applicable state and local income taxes.