Contributions
What is the minimum investment?
The minimum initial investment needed to establish an account in the plan is $250. This minimum is waived if you set up an Automatic Investment Plan for as little as $25/month coming directly from your bank account or paycheck.
How much can I contribute?
There is no annual maximum contribution for the tomorrow's scholar college savings plan. However, once the combined balance of all of the accounts set up for a single beneficiary reaches the program maximum ($330,000), no additional contributions will be accepted.
Does tomorrow's scholar® offer a Dollar Cost Averaging feature?
Yes. tomorrow's scholar offers a Systematic Exchange feature that allows you to invest a lump-sum into one Portfolio, then automatically transfer a set dollar amount into another Portfolio. Click here for more information on the benefits of dollar cost averaging.
Can I convert a Coverdell Education Savings Account (formerly known as an Education IRA) into a 529 plan?
Yes. A qualified withdrawal may be taken from an Education Savings Account (tax-free) if the money is then placed into a 529 plan for the same beneficiary. There is no penalty for this liquidation as long as the assets are placed into a 529 plan.
I have savings bonds for my children. Can I transfer those assets to a 529 plan?
Since only cash can be contributed to a 529 plan, the bonds would have to be liquidated. Series EE or I-Bonds purchased after 1989 may be converted tax-free to a 529 plan if the eligibility requirements are met.
How is my money invested?
tomorrow's scholar offers several specially designed investment portfolios. You select an option at the time you establish the account. You may change that option once per calendar year or when you change the designated beneficiary on the account, so you may want to select an option you will feel comfortable with over a long period of time. You do have the option to stop contributing to one portfolio and begin contributing to another. Click here to get information on the available investment options.
What sales charges may apply to my contributions?
tomorrow's scholar is available only through financial advisors. Certain sales charges may apply, which compensate your financial advisors for the services they provide. Your financial advisor can help you determine which share class is best for you.
Can more than one person make contributions to an account?
Yes. Anyone can contribute to a child's account. However, only the account owner has control over how the assets are used in an account. A person wishing to make a sizable contribution may want to consider opening a separate account for the same beneficiary.
Can I contribute to a tomorrow's scholar account if I have an Education Savings Account?
Yes. Investors can contribute to both tomorrow's scholar and an Education Savings Account. $2,000 is the annual maximum contribution that can be made to an Education Savings Account.
A program of regular investment cannot assure a profit or protect against a loss in a declining market.
|
This Web site is accompanied by a