With college tuition and fees increasing an average of 7% last year (Source: The College Board, Trends in College Pricing, 2004), the 529 plan was designed to allow you to effectively save for your child's college education. Anyone can contribute to the plan - parents, grandparents, relatives-and contributions are considered completed gifts for federal gift and estate tax purposes excludable from the client's taxable estate. Generally, individuals are allowed to contribute up to $55,000 for a beneficiary in a single year ($110,000 for married couples) without federal gift tax consequences, provided the contributor does not make any additional gifts to that beneficiary over a five-year period. In addition, there is no federal income tax due on any earnings while they are in the 529 plan. And distributions for qualified education expenses are federal income tax free.

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Investors should carefully consider investment objectives, risks, charges and expenses.  This and other important information is contained in the fund prospectuses and the 529 plan Program Description, which can be obtained from a financial professional and should be read carefully before investing.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed.  Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.  Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.  Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus.

You may face ordinary federal income tax and a 10% federal tax penalty on any earnings withdrawn for expenses not related to higher education.  Please see the 529 plan Program description and fund prospectuses for more information about fees and expenses.

*Not FDIC Insured *No Bank Guarantee
*Not a Bank Deposit
*Not Insured by any Federal Government Agency
*May Lose Value*