Section 529 College Savings Plan:
A Section 529 Plan is an investment program regulated by Section 529 of the Internal Revenue Code, designed to help families save for future college costs. As long as the plan satisfies a few basic requirements, funds invested in a 529 plan grow tax-free. When the plan makes a distribution to pay for the beneficiary’s college costs, the distribution is federally tax-free and, in some states, it is also free from state tax.
Purdue offers its employees the College Choice 529 Investment Plan managed by J.P. Morgan and the College America plan managed by American Funds.
Both of these plans are designed to assist you in saving for future college expenses for your children, grandchildren, or even for yourself. They provide an after-tax vehicle for college savings which may be invested in a variety of different investment options designed to encourage individual investment preferences or age-based portfolios.
You may participate through direct deposit from payroll or debit from checking, depending on which plan you select. Regardless of which plan you choose, because this is a group plan, your investments will not be subject to sales charges.
To learn more about these plans, please visit the HR Intranet site once you begin your employment. Enrollment materials are available in Human Resources. If you have additional questions about these plans or would like to enroll, please call Kerri Sherry at ext. 7119.