DREAM.
Education
turns
dreams
into
reality.
Now,
you
can
share
with
your
student
your
dream
of
opportunity,
knowledge
and
growth
with
the Alabama Higher Education 529 Fund.
BUILD.
With the Alabama Higher Education 529 Fund, distributed by Van Kampen, you can build an investment strategy that is right for you—and let tax-advantaged investing help you put more money toward that diploma. The plan
gives
you
the
opportunity
to:
§ Enjoy Easy
Contributions. With our low minimum investment requirements, anyone can establish an account for a student—grandparents, parents, friends or relatives. With $250, or an automatic monthly investment of $25 or more, you can start investing today. You can contribute until the value of the account reaches $300,000, per beneficiary, during the life of the fund. Then, once you reach the maximum, your investment may continue to grow—tax free.
§ Experience
Tax-Deferred
Growth
Potential. Your investment
in
the
plan
can
grow
tax-deferred,
so
gains
on
an
investment
in
the
plan
are
exempt from annual federal
and
state
income taxes.
§ Make Tax-Free Withdrawals. When your
student
is
ready to withdraw money for
tuition,
fees,
books,
supplies,
or
room
and
board,
the
withdrawals1
are exempt from
both
federal
income
taxes
and
Alabama
State
income
taxes. That means that more of your investment can be applied toward your student’s education.
Please
note:
Withdrawals
for
non-qualified
expenses
may
be
subject
to
federal
taxes
as
well
as
a
10
percent
early-withdrawal
penalty.
§ Choose From Flexible Investment Options. Our carefully crafted
Years to Enrollment Portfolios
are based on asset-class models developed in conjunction with Ibbotson Associates, a leading authority on asset allocation. We also offer Fixed Portfolios and Individual Fund Portfolios, so you can create your own asset mix. You have the freedom to select the investment options that are best for you.
§ Give a Gift, Build a Legacy.
You
can
contribute
up
to
$12,000
annually
per
beneficiary--$24,000
for
married
couples
filing
jointly
who
elect
to
split
gifts--without
filing
a
gift-tax
form
or
paying
gift
taxes.
Please
keep
in
mind
that
gift-giving
limits
are
subject
to
certain
exceptions.
The
new
beneficiary
must
be
a
member
of
the
family
of
the
previous
beneficiary,
as
defined
by
Section
529
of
the
Code
and
the
program
disclosure
statement,
to
avoid
federal
income
tax
consequences.
You
can
also
accelerate
your
contribution.
Participants
can
contribute
a
five-year
gift
in
one
lump-sum
per
beneficiary.
These
rules
assume
that
no
other
gifts
are
made
to
the
same
beneficiary
within
the
five
years.
However,
contributions
to
the
plan
are
treated
as
a
gift
to
the
beneficiary
for
gift
and
generation-skipping
transfer
tax
purposes.
§ Benefit From Low Account Fees.
As
an
Alabama
resident,
you
can
invest
in
the
program
directly--without
paying
sales
charges,
enrollment
or
ongoing
maintenance
fees.
ACHIEVE.
Take steps to achieve your dream. Create a strategy that's
right
for
you.
The Alabama Higher Education 529 Fund
lets
you
customize
your
college
investment
program
so
you
can:
- Invest according to your time
horizon.
- Invest according to your risk-tolerance
level.
- Design
a
personalized
investment
mix.
Everyone has different needs—that’s why we’re dedicated to providing you with an investment strategy that’s right for you. Learn more about our Years to Enrollment Portfolios, Fixed Portfolios or Individual Fund Portfolios.
To
Link
to
the
Alabama
Prepaid
Affordable
College
Tuition
Program,
click
here.
1.
For
non-Alabama
residents,
if
the
investor
or
the
beneficiary
resides
in
or
pays
income
taxes
to
a
state
that
offers
its
own
529
college
savings
or
prepaid
tuition
plan,
that
state
may
offer
state
or
local
tax
benefits,
but
only
for
participation
in
such
in-state
plans.
An
investor
should
consider
the
investment
objectives,
risks,
charges
and
expenses
associated
with
the
Program
before
investing.
All
of
this
information,
including
risk
factors
and
possible
tax
consequences,
is
contained
in
the
Program
Disclosure
Statement.
Please
read
it
carefully
before
investing.
For
a
copy,
call
866.529.ACCT
(2228).
If
you
and
your
beneficiary
are
not
Alabama
residents,
consider
whether
your
home
state
or
home
state
of
your
designated
beneficiary
offers
a
qualified
tuition
program
that
provides
state
tax
or
benefits
that
are
available
only
for
investments
in
your
home
state's
qualified
tuition
program.
The
Program
is
sponsored
by
the
State
of
Alabama
and
is
designed
to
be
a
Qualified
Tuition
Program
under
Section
529
of
the
Internal
Revenue
Code.
The
FDIC,
the
State
of
Alabama,
the
Treasurer
of
the
State
of
the
Alabama,
the
Board
of
Trustees
of
the
Program
Trust
Fund
or
any
other
federal
or
state
governmental
agency
do
not
insure
or
guarantee
accounts
and
investments
under
the
Program.
Van
Kampen
Funds,
Inc.
is
the
underwriter
for
the
Program.
The
Program
is
also
offered
through
independent
distributors
that
have
entered
into
selling
agreements
with
Van
Kampen
Funds
Inc.,
which
serves
as
an
independent
distributor
for
the
Program.
The
tax
information
contained
herein
is
a
summary
and
is
not
intended
to
be
complete.
The
applicable
federal,
state
and
local
tax
rules
are
complex;
at
present,
some
of
the
rules
are
uncertain
and
their
application
to
any
particular
person
may
vary
according
to
that
individual's
specific
circumstances.
Van
Kampen
and
the
State
of
Alabama's
Treasurer's
office
do
not
render
tax
or
legal
advice.
This
material
was
not
intended
or
written
for
--
and
cannot
be
used
by
--
any
taxpayer
for
the
purpose
of
avoiding
penalties
that
may
be
imposed
on
the
taxpayer
under
U.S.
federal
tax
laws.
Each
taxpayer
should
seek
advice,
based
on
their
particular
circumstances,
from
a
tax
advisor.
