An Investment Plan With Tax Advantages
When you decide to invest in something as important as education, you don't want anything holding you back from achieving your goals - particularly taxes. As a 529 savings plan, BlackRock CollegeAdvantage gives you the ability to contribute, grow and withdraw your assets free from federal taxes as long as the funds are utilized for qualified higher education expenses, ranging from tuition and fees to supplies and equipment. This means you're not just saving - you're saving smarter.
Some states provide favorable tax treatment to their residents only if they invest in that state's respective plan. Before investing, investors should consider whether their home state, or that of the designated beneficiary, offers any state tax or other benefits that are only available for investments in that state's qualified tuition program. Consult your tax professional or financial professional with any questions.
The Benefits of Tax-Advantaged Investing
The hypothetical illustration assumes an initial investment of $10,000, $250 monthly contributions and a 7% annual rate of return. The taxable account assumes a 25% federal tax rate. The illustration does not represent the performance of any specific account or investment and does not reflect any plan fees or sales charges that may apply. If such fees or sales charges were taken into account, returns would have been lower.
Related Resources
An investor should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. More information about municipal fund securities is available in the issuer's Program Description. You may obtain a Program Description by clicking here or calling 866-529-8582. The Program Description should be read carefully before investing.
Any investment in a BlackRock CollegeAdvantage mutual fund-based investment option is not insured or guaranteed by the FDIC or any other governmental agency or other party, including the custodian/state of Ohio, the Tuition Trust, BlackRock or any of the mutual fund firms under contract with the Ohio Tuition Trust Authority. An investment in a BlackRock CollegeAdvantage mutual fund-based investment option is not a direct investment in a mutual fund itself. Participants assume all investment risk of an investment in the BlackRock CollegeAdvantage 529 Plan, including the potential loss of principal and liability for penalties such as those levied for non-educational withdrawals. Regular investing does not ensure a profit or protect against a loss in a declining market. The amount actually available for withdrawal will depend on the investment performance of the investment options chosen.
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