This information should not be considered tax or investment advice. Numerous recent changes in the tax law have made college savings plans more accessible and attractive to many people. Some of the changes, including federal tax-free treatment of withdrawals for qualified higher education expenses, are scheduled to expire on 12/31/10 unless extended by Congress. You should consider the place of various education planning vehicles in the context of your overall financial plan with a financial and/or tax advisor. Please review the Offering Statement (PDF) for the program carefully before making any investment decisions. You may want to investigate whether your state offers a plan with alternative tax strategies for its residents. Any investment in Putnam 529 for America is not an investment in a mutual fund, although it does use mutual funds as the underlying investment vehicle.
Putnam 529 for America is sponsored by the State of Nevada, acting through the Trustees of the College Savings Plans of Nevada and the Nevada College Savings Trust Fund. Anyone may invest in the plan and use the proceeds to attend school in any state. Before investing, consider whether your state's plan or that of your beneficiary offers state tax and other benefits not available through Putnam 529 for America. If you withdraw money for something other than qualified higher education expenses, you will owe federal income tax and may face a 10% federal tax penalty on earnings. Consult your tax advisor.
You should carefully consider the investment objectives, risks, charges, and expenses of the plan before investing. Ask your financial representative or call Putnam at 1-877-PUTNAM529 for an offering statement containing this and other information for Putnam 529 for America, and read it carefully before investing. Putnam Retail Management, principal underwriter and distributor. Putnam Investment Management, investment manager.