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529s: Let's separate fact from fiction.

Click on each of the boxes below to find out what's 529 myth vs. 529 reality:

Reality: You can use the assets at any eligible higher education institution around the country and abroad — not just in Arkansas. That includes 2- and 4-year colleges, graduate schools (including law and medical), and vocational/technical schools.1 Savings from a Brighter Future 529 account can also be used for qualified expenses related to any apprenticeship that is registered and certified with the Secretary of Labor.

Reality: You can use your account assets for any qualified withdrawals. Qualified withdrawals for higher education include tuition, mandatory fees, certain room and board costs, laptops and computers, and supplies.2 Other qualified withdrawals include K-12 tuition expenses up to $10,000 per year, per student at K-12 public, private and religious schools, expenses for registered qualified or eligible apprenticeship programs, and student loan repayments up to $10,000 lifetime, for the beneficiary or a sibling of the beneficiary.

Reality: Most plans have low minimums. You can open a Brighter Future 529 account with only $25. To help families save more, Brighter Future offers additional programs, like Ugift®, which allows account owners to invite family and friends to make gift contributions, and Upromise®, a service that lets account owners earn college savings when they shop online, dine out, and more.3

Reality: 529 plans have several investment types to meet your needs. Brighter Future offers three types of investments. Target Enrollment Portfolios offer adjusting portfolios in which the investments shift from a growth-oriented allocation to a more conservative mix based on the year the beneficiary is expected to enter their education program. There are also six Custom Portfolios that let you create your own investment strategy and a third option of an FDIC-insured Savings Portfolio.4

Reality: It's never too late. Even if your student is in high school you can benefit from a 529 plan. Brighter Future earnings grow tax deferred, and when you withdraw the money for a qualified expense, it's federal tax free.2 Arkansas taxpayers can deduct up to $5,000 ($10,000 if married, filing jointly) annually from their state adjusted gross income calculation for contributions to a Brighter Future 529 Plan account.5

Reality: There are no income limitations for a 529 plan. In fact, as part of the tax advantages offered by a 529 plan, account owners can contribute $17,000 ($34,000 if married, filing jointly) in a single year without incurring a gift tax.

Reality: Are you considering career retraining or an advanced degree? There's no maximum age for a 529 plan. As long as your school or program is eligible, you can use your 529 plan assets — even if you're not attending full-time.

Reality: Unlike other college savings options, a 529 plan account owner controls the account. That means you can change your beneficiary to another eligible "Member of the Family" with no tax penalty.6

Reality: Parents, grandparents, aunts, uncles, friends...almost anyone can be an account owner.7 You can also open an account for your own education.

Reality: Most 529 plans let you open an account online. It doesn't take long to open a Brighter Future 529 Plan account at brighterfuturedirect529.com.

Now that you've got the facts, are you ready to help turn your child's dreams into reality? Open your Brighter Future 529 Plan account today.

1An eligible institution is one that can participate in federal financial aid programs.
2Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
3Upromise is an optional service offered by Upromise,LLC, is separate from Brighter Future 529, and is not affiliated with the State of Arkansas. Specific terms and conditions apply. Participating companies, contribution levels and conditions subject to change without notice. Transfers subject to a $50 minimum.
4Except for the Savings Portfolio, investments in Brighter Future 529 are not insured by the FDIC.
5Arkansas taxpayers can deduct up to $5,000 (up to $10,000 for married couples making a proper election) of your Arkansas Brighter Future Direct Plan contributions from your Arkansas adjusted gross income with any unused excess contribution in a tax year being carried over to the next succeeding four tax years, beginning January 1, 2017.
6For beneficiary changes to occur free from federal or state income taxes, the new beneficiary must be a Member of the Family of the original beneficiary. See the Disclosure Statement for the definition of Member of the Family. You should consult with a tax advisor when considering a change of beneficiary.
7You must be a U.S. citizen or resident alien, have a Social Security number or Tax Identification number, and have a permanent U.S. address (not a P.O. Box).