Why CollegeBound 529?

Why CollegeBound 529?

CollegeBound 529, recognized by Morningstar® as a Bronze rated advisor-sold plan,1 is designed to meet your education savings needs with a wide choice of flexible investment options and an innovative program design.

Availability

Availability

  • There is no account minimum to get started.
  • There is no income limit for participation.
  • Funds can be used at eligible community colleges, public and private undergraduate and graduate universities, or vocational/trade schools across the country.
View eligible institutions
Tax Advantages

Tax Advantages

  • Earnings growth is deferred from federal and state income taxes.2
  • Distributions for qualified education expenses are free from federal taxes and may also be free from state taxes.
  • Some states allow for a deduction or credit against state income taxes on contributions.
View tax benefits by state
Control

Control

  • The account owner maintains control of withdrawal timing and amounts.
  • The beneficiary can be changed to another member of the same family without income tax consequences.3
  • The plan offers flexible withdrawal options to help ensure tuition payments arrive on time.
View frequently asked questions

Innovative Program Features

Cost-conscious Investment Options

Enjoy competitive fees and cost-conscious options due to the inclusion of active and passive investment portfolios.

Active and Passive Investment Portfolios

Some portfolios are professionally managed by Invesco, and rooted in fundamental and factor-based strategies.

Flexible Funding Options

Designed to accommodate every budget, with a $0 minimum investment and a generous $395,000 per beneficiary limit.

Flexible Investment Menu

Account owners can choose from a variety of portfolios designed around their savings goals:

Age-Based Portfolios

Uniquely structured investment options designed to align with a child’s expected year of college enrollment.

Target Risk Portfolios

Investment options aligned to levels of risk: conservative, moderate and growth. These portfolios combine both active and passive investments – all professionally managed by Invesco – to seek the desired risk-adjusted returns.

Individual Portfolios

Single-strategy investment options across major asset classes. These portfolios allow the account owner and beneficiary to customize their college savings strategy.

Why Choose A CollegeBound 529 For Your Client?

Visit resources for financial advisors on the Invesco website to learn why CollegeBound 529 could be a great choice for your clients.

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1 ©2019 Morningstar, Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and isn't warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results.

The Morningstar Analyst RatingTM is a subjective evaluation performed by Morningstar's manager research group based on five key pillars: process, performance, people, parent and price. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, Negative. The top three ratings indicate the corresponding level of analyst conviction in the ability of a 529 plan's investment options to collectively outperform their respective benchmarks and peers through time, within the context of the level of risk taken. Gold plans are the highest-conviction recommended and stand out as best of breed for their investment mandate. Silver plans are high-conviction and have notable advantages across several, but not all, five pillars. Bronze plans have advantages that clearly outweigh any disadvantages across the pillars. Ratings are continuously monitored and reevaluated at least every 14 months. While these ratings can help with the selection process, they should not be the only factor used to choose the investment and do not represent guarantees, credit or risk ratings. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please visit Morningstar.com.

2 Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements, and certain withdrawals are subject to federal, state and local taxes.

3 For beneficiary changes to occur without federal or state income tax consequences, the new beneficiary must be a family member of the current beneficiary.