Education Planning

Help clients plan for higher education costs

Maybe your clients want to help pay for a child’s education. Or maybe they need to invest toward their own venture back into the higher education world. No matter what the reason, you can offer them a savings plan that can help them build toward a college fund.

Choose from the TD Ameritrade 529 College Savings Plan, Coverdell Education Savings Accounts (ESAs), and more. All offer potential tax benefits and a wide variety of investment choices.

TD Ameritrade 529 College Savings Plan

Your clients can choose from a diversified menu of investments including mutual funds and exchange-traded funds (ETFs) from many well-known fund families. Plus, any gains are tax-deferred and withdrawals can be used to pay for qualified higher education expenses — free from federal and Nebraska state income tax.

Coverdell Education Savings Accounts (ESAs) and more

Help your clients plan for college expenses and take advantage of potential tax benefits through other education planning tools such as:
•	Coverdell ESAs
•	Uniform Gifts to Minors Act (UGMA) / Uniform Transfers to Minors Act (UTMA)
•	Custodial accounts

An investor should consider the Plan's Investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at https://www.tdameritrade.com/account-types/education/529-plans.page, which contains more information, should be read carefully before investing.

Investors should also consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation.

The TD Ameritrade 529 College Savings Plan ("the Plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The plan offers a series of investment portfolios within the Nebraska Educational Savings Plan Trust ("the Trust"), which offers other investment portfolios not affiliated with the Plan. Nebraska Educational Savings Plan Trust serves as Issuer. The Plan is intended to operate as a qualified tuition program to be used only to save for qualified higher education expenses, pursuant to Section 529 of the U.S. Internal Revenue Code.

* The earnings portion (if any) of a Non-Qualified Withdrawal will be treated as ordinary income to the recipient and may also be subject to an additional 10% federal tax.

Diversification does not eliminate the risk of experiencing investment losses.

Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.

Investments in the TD Ameritrade 529 College Savings Plan are not guaranteed or insured by the FDIC, SIPC or any other government agency, and are not deposits or other obligations of any depository institution. Investments are not guaranteed or insured by the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha or TD Ameritrade, or their authorized agents or their affiliates, and are subject to investment risks, including loss of the principal amount invested.

¹Withdrawals used to pay for qualified higher education expenses are free from federal and Nebraska state income tax. These expenses include tuition, fees, books, computer equipment and software, supplies and equipment required for enrollment at a qualified institution of higher education. Room and board is considered a qualified education-related expense if the student is enrolled on at least a half-time basis. The earnings portion (if any) of a Non-Qualified Withdrawal will be treated as ordinary income to the recipient and may also be subject to an additional 10% federal tax penalty.

This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. This material is not an offer to sell or a solicitation of an offer to buy any securities. Any offer to sell units within the Plan may only be made by the Program Disclosure Statement and Participation Agreement relating to the Plan.

TD Ameritrade does not provide tax advice. Every individual’s tax situation is different, and it is important to consult a qualified tax advisor regarding the application of the Plan’s benefits to your own individual situation.

Education Planning

Help clients plan for higher education costs

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