529 Savings Plans

Save for a promising future.

Whether a prepaid tuition or a college savings plan, a 529 plan may be used for education-related expenses at all accredited colleges and universities. Any person, married or single, relative or non-relative can easily contribute. Plan details differ from state to state. This versatile solution lets you choose from multiple strategies to create a solution that works for your unique needs.

Features include:

  • Sponsored by individual states in most cases1,2
  • Can be used to gift assets
  • Can be used to pay for tuition, room and board, and any other qualified expenses at accredited colleges2
  • Account owner maintains control, even after a beneficiary turns 182
  • Earnings in the plan are free from federal tax2
  • Qualified withdrawals are free from federal tax and may be exempt from state tax2
  • Contributions may be free from federal gift taxes for the contributor2

1 By investing in a 529 plan outside your state of residence, you may lose available state tax benefits. 529 plans are subject to enrollment, maintenance, administration/management fees and expenses. Make sure you understand your state tax laws to get the most from your 529 plan. If a withdrawal is made for any reason other than a qualified higher education expense, the earnings portion of the withdrawal will be subject to both state and federal income tax, and possibly a 10% federal tax penalty. The value of a 529 plan is subject to risks, which include market fluctuation based on the 529 plan’s portfolio, and economic, political and social circumstances. Additionally, the investor has limited shareholder rights, as there is not a direct ownership interest, which includes limited or no voting rights for the underlying securities. The plan reserves the right to terminate or make changes to the plan at any time. Such changes may include the acceptance of additional contributions or the ability to establish new accounts. Investment objectives, risks, charges and expenses associated with municipal fund securities should be considered before investing in municipal fund securities. The issuer’s official statement should be read carefully before investing.

Contact Comerica Securities, Inc. at 800.232.6983 to obtain an official statement that provides more information and that should be read carefully. You should consider the investment objectives, risks, charges and expenses associated with the 529 plan before investing.

2 Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation.

Securities and other non-deposit investment products offered through Comerica Securities, Inc. are not insured by the FDIC; are not deposits or other obligations of, or guaranteed by, Comerica Bank or any of its affiliates; and are subject to investment risks, including possible loss of the principal invested. Past performance is not indicative of future results. Information presented is for general information only and is subject to change. Comerica Securities, Inc. is a broker/dealer, member FINRA/SIPC and subsidiary of Comerica Bank. Comerica Securities, Inc. is a federally Registered Investment Advisor. Registrations do not imply a certain level of skill or training.​​