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 from your Financial Solutions Advisor 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.
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 Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax, as well as applicable state and local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.
Section 529 plans are established by various states and are offered to residents of all states. Depending on the laws of the customer's home state, favorable tax treatment for investing in a Section 529 plan may be limited to investments made in a Section 529 plan offered by the customer's home state. Neither Merrill Lynch, Pierce, Fenner & Smith Incorporated nor any of its subsidiaries are tax or legal advisors. We suggest you consult your personal tax or legal advisor before making tax or legal-related investment decisions.
The 5 out of 5 cap ratings are as of 12/31/15 and are specifically for the NextGen College Investing Plan Client Direct Series for Maine resident and nonresident and for the NextGen College Investing Plan Client Select Series for Maine residents. Savingforcollege.com's 5-Cap Ratings provide an evaluation and comparison of one hundred six 529 plans, utilizing a mix of qualitative and quantitative metrics to examine dozens of factors grouped into the following categories: multiyear performance, costs, features, reliability and resident upgrade. Learn more at http://www.savingforcollege.com/5_cap_ratings/index.php?page=ratings_criteria