A 529 College Savings Program is a tax-advantaged college savings program that was created to encourage families to save for their children's higher education. Eligibility is extended to any civilian employee, retiree, and military personnel or contractors assigned to NSA-W headquarters. Features of the plan include:
- Accounts can be established for any child
- Earnings grow tax-deferred while the account owner controls the assets; qualified withdrawals are tax-free
- Higher education expenses include tuition, fees, room, board, textbooks, supplies, and equipment that are required for the child to attend any college, university, vocational school or post-secondary educational institution
- Account owner retains control and flexibility with the option to change account beneficiaries or withdraw the funds at any time, subject to income tax and penalties
GEBA offers two different 529 College Savings Plans: College America® offered through American Funds and College Sure CDSM offered through College Savings Bank, a subsidiary of Pacific Life
College America®, American Funds
- Contributions can be invested in any one, or combination of 21 American Funds
- Account owner selects funds that fit their financial plan, time horizon, and risk tolerance
- Lifetime Contribution Limit of $250,000
- Minimum Investment of $25 a month per fund
- Visit the American Funds Web site for fund performances and fund prospectus at www.americanfunds.com
12b-1 fee of 0.50% and annual fee of $10. Securities offered through Medallion Investment Services, Inc. Member NASD/SIPIC. Wholly-owned subsidiary of TMG Holding Company, Inc. T/A The Medallion Group
College Sure CDSM, College Savings Bank
- Contributions are invested in College Sure CD's- Certificate of Deposits that are indexed to college cost inflation of the Independent College 500 Index (CI500)
- Account has an interest rate floor of 2.00%
- Principal and interest are backed by the full faith and credit of the US Government with FDIC insurance up to $100,000 per depositor
- Lifetime Contribution limit of $197,000
- Minimum investment of $250 lump sum or $100 monthly