Putnam 529 for America

We can't imagine all they will accomplish.
But we can get them off to a strong start.

A good education will pay a lifetime of benefits, but the challenge of saving for higher education has never been greater. College savings is one of the biggest financial demands most families will face.

Since offering one of the first advisor-sold 529 college savings plans in the country, Putnam has been helping families across America build their futures. Our expertise in 529 plan administration is combined with industry-recognized customer service and more than 75 years of investing experience. Explore investment options.

Benefits of Putnam 529 for America

A 529 plan can help you prepare financially for college

Set your sights on any college.

Proceeds from a Putnam 529 for America account can be used at any accredited college to pay for tuition, fees, room and board, books, and other qualified expenses.

Change in plans? Change the beneficiary.

Anyone can invest on behalf of your child.

Parents, grandparents, aunts, uncles, and friends can all contribute to the account. Contributions can be as low as you like or as high as $370,000* over the life of the account.

Change in plans? Change the beneficiary.

Change in plans? Change the beneficiary.

If a child decides not to attend college, you can switch the account to another family member, including yourself. You may change the beneficiary as many times as you like to another member of your family, as defined by the IRS.

You control the account, even when the child reaches legal age.

You control the account, even when the child reaches legal age.

As account owner, you retain control over withdrawals for the life of the account. This benefit is not offered by many non-529 education savings accounts, which transfer assets when the child reaches legal age.

You pay no federal income tax on 529 plan earnings

You pay no federal income taxes on your earnings.

While the account is invested, you will pay no federal income taxes on your earnings, and you will pay no federal income taxes when you withdraw the money to pay for qualified college expenses.

Because the earnings in your 529 account are not taxed, your savings accumulate faster than in a taxable account.




This example assumes contributions of $500 per month, a hypothetical 6% nominal rate of return compounded monthly with an effective return of 6.17%, and a 28% tax bracket for the taxable account. The returns shown are for illustrative purposes only. They are not representative of any particular investment and are not intended to predict the return of any investment, which will fluctuate. Regular investing does not ensure a profit or protect against loss in a declining market. Capital gains, exemptions, deductions, and local taxes are not reflected. After-tax returns are subject to a capital gains tax, which was reduced in 2003 and would make the investment return for the taxable investment more favorable. Investors should consider their personal investment horizon and income tax brackets, both current and anticipated, when making an investment decision. These may further impact the results of the comparison.

You can decrease your taxable estate while paying for college

You can decrease your taxable estate while paying for college.

In certain cases, contributions to the account can be removed from your estate for tax purposes, yet you retain control over the assets. This benefit is unique to 529 plans.

Assumes grandparents removed $650,000 in assets and contributed in equal increments of $130,000, which is the maximum single-year beneficiary amount allowed for married couples electing split gifts without exceeding the annual gift tax exclusion applicable to 529 account contributions.

Making a gift contribution can bring added tax benefits.

A special gift tax exclusion enables you to make five years' worth of gifts to a single beneficiary in a single year without triggering the federal gift tax.

*As of 10/1/10. Subject to change based on periodic review by state.