Putting a child through college is one of the most expensive challenges. To help you face this challenge, Horace Mann offers 529 college savings plans. Like all 529 savings plans, they have these features:
- Tax advantages allow earnings to grow tax-deferred.
- Withdrawals for qualified higher education expenses (tuition, room and board, and required books and supplies) are free from federal income tax.
- Tax advantages, deductions or credits are allowed in many states for contributions, and distributions used for higher education expenses have limited taxability.
- On earnings for non-qualified withdrawals, they have the potential for federal and state income tax and a 10-percent tax penalty.
- The plans are portable, allowing their use to pay for any accredited college (not just in your state) offering undergraduate, graduate, post-graduate and technical training.
- Contributions of up to $14,000 per year ($28,000 per married couple) have no gift tax consequences.
- The plans have no income limits, so you can contribute no matter how much you earn.
- There are no restrictions on which family member you save for – a child, grandchild, niece, nephew, friend or yourself.
- The plans provide asset control, allowing you to decide when to make withdrawals.
As with all securities, 529 college savings plans involve a risk of loss, including a loss of principal, and do not guarantee that contributions and earnings will be adequate to cover your child’s future college costs. Also, 529 college savings holdings could impact the beneficiary’s ability to qualify for grants and student loans. 529 college savings plans vary by state, including contribution limits, state tax advantages, investment options, fees and expenses. Tax laws are subject to change; and depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through plans offered by Horace Mann Investors, Inc. You should consult with a tax advisor before investing in any state’s 529 plan.
529 college savings plans are offered by Horace Mann Investors, Inc., member FINRA / SIPC. Horace Mann Investors, Inc. is located at #1 Horace Mann Plaza, Springfield, IL 62715. You should read the prospectus and/or 529 plan program descriptions carefully and consider the investment objectives, risks, charges and expenses carefully before you invest or send money. The prospectus and 529 plan program descriptions will provide complete information about these subjects.
To obtain a prospectus contact your Horace Mann Representative.