College Savings

Fidelity InstitutionalSM offers college savings plans that enable financial intermediaries to help their clients reach their higher education savings goals.

Fidelity Advisor 529 Plan (National Plan)

Our nationally distributed 529 plan offers an array of benefits including a broad range of investment options and a high contribution limit to help families save for qualified education costs.

OklahomaDream 529 Plan

The OklahomaDream 529 Plan offers residents of Oklahoma in-state tax benfits while helping families save for qualified educational expenses.

Communicate 529 Plan Benefits

A

Tax Advantages

  • Earnings grow tax deferred.
  • The tax code allows taxpayers to pay up to $10,000 per student per year in K–12 tuition.2
  • Qualified distributions are federal income tax free. Money not used for qualified expenses will be subject to a 10% federal tax.
  • If a student gets a scholarship, the amount of the award can be withdrawn without the 10% federal tax. Just pay ordinary income tax on the earnings.
  • Assets may be used to repay up to $10,000 in student loans for the beneficiary or a sibling of the beneficiary.3
  • Distributions are tax free for qualified expenses associated with a beneficiary enrolled in a registered apprenticeship program.4
B

Control and Flexibility

  • The account owner controls the account and authorizes the withdrawals, even after the beneficiary turns 18.
  • There are no income requirements for opening an account.
  • The account owner can change the beneficiary of the account to a family member of the original beneficiary.6
  • The account owner has the flexibility to use the assets at most accredited colleges and universities.1,2
C

Estate Tax and Gifting Benefits

  • Contribute up to $75,000 ($150,000 per married couple) per beneficiary in a single year without the money being subject to the federal gift tax.5
  • Assets gifted to a 529 plan are considered immediately removed from the donor’s estate, which may help reduce or eliminate estate taxes.
  • Accelerated gifts may result in a larger 529 plan account balance over time, thanks to compounding.
 
 

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