529 Plans

529 Plan accounts are flexible accounts specifically designed for college savings. Qualified distributions from a 529 Plan account are federal income tax-free when used to pay for certain educational expenses. The plans were named after Section 529 of the IRS code that created them.

Summit Financial Group professionals can help you choose and manage state-sponsored 529 Plans, which are designed for college savings.

Each 529 Plan is state-sponsored and managed by a financial services company. Residents of any state can invest in any plan.

529 Plans are established by states or eligible educational institutions under IRC Section 529 as "qualified tuition programs." There is no guarantee offered by the issuing municipality or any government agency. You should consider the potential benefits (if any) that your own state's plan (if available) offers to residents prior to considering another state's plan. There may be tax benefits to plans offered by your resident state. Non-qualified withdrawals from a 529 Plan are subject to a 10% federal tax penalty and current income tax and may also be subject to state tax penalties. As with all tax-related decisions, consult with your tax advisor.

Municipal fund securities are sold by offering statement, which is available from your registered representative. Please carefully consider investment objectives, risks, charges, and expenses before investing. For this and other information about municipal fund securities, please obtain an offering statement and read it carefully before you invest. Investment return and principal value will fluctuate with changes in market conditions such that shares may be worth more or less than original cost when redeemed. Diversification cannot eliminate risk of investment losses.