529 Plan Tax Exemptions

Save for your child's future education the smart way

Less than 1 percent of all high school athletes recieve any scholarship from a Division I school: even rarer is the student who recieves a full ride.¹ That's just one reason why it's important to have a solid game plan in place, well before your child applies to college.

Benefits of Future Scholar

Begin saving for your child's college education with as little as $250. All of your Future Scholar earnings are exempt from federal income taxes, and as a special benefit South Carolina residents, you may be eligible to make tax-deductible contributions from state income taxes too.²

¹ CliffNotes.com Getting and Athletic Scholarship. 26 May 2009.

² You may be eligible to deduct your Future Scholar contributions from your South Carolina state income tax return, up to the maximum accound balance limit of $318,000 or any lower limit under applicable law. Lower limits may be set by South Carolina state law. Distributions not used for qualified education expenses must be included in South Carolina gross income to the extent those amounts were previously deducted from South Carolina taxable income.

Please consider the investment objectives, risks, charges and expenses carefully before investing in the Future Scholar 529 College Savings Plan. Contact your financial advisor or Columbia Management for a Program Desciption, which contains this and other important information. Read it carefully before investing. You should also consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Columbia Management Investment Distributors, Inc., distributor and underwriter.

Please remember there's always the potential of losing money when you invest in securities.

Participation in the Direct Plan is limited to a select group of investors, as described in the Program Description. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors. The Advisor Plan offers additional investment choices, but the fees and expenses are higher. Please refer to the Program Description for more information.

The Office of State Treasurer of South Carolina (the State Treasurer) administers the Program, and has selected Columbia Management Investment Distributors, Inc. as Program Manager. Columbia Management Investment Distributors, Inc., certain affiliates and its parent company are responsible for providing certain administrative, recordkeeping and investment services and for the marketing of the Program.

Tax treatment varies by state. For residents of states other than South Carolina: Favorable state tax treatment for investing in a Section 529 college savings plan may be limited to investments in a Section 529 plan offered by your home state. You should consult with your tax advisor about any state or local taxes before making any tax-related decisions. The tax information set forth in this brochure is general in nature and does not constitute tax advice on the part of Columbia Management Investment Distributors, Inc., its affiliates or the South Carolina Office of the State Treasurer.