College Savings Plan
529-College Savings Plans are an excellent way to invest for your child's education.

How Do They Work?
A 529 plan is a qualified tuition program established under Internal Revenue Code Section 529. College Savings Plans offer opportunities for contributors to invest dollars now that will be used to pay expenses in the future.

The money accumulated in these plans can be used for tuition, fees, room, board, books, supplies and equipment at any Department of Education accredited college or university. When you invest in a college savings plan, you are contributing to an account that is controlled by the state that sponsors the plan or by an outside manager designated by the state. Earnings accumulate on a tax-deferred basis and all qualified withdrawals are Federal income tax free. The Account Owner, not the Beneficiary, maintains control of the account to help ensure the assets will be spent only for educational purposes.

What Are The Benefits?

• You can name anyone as beneficiary.
• The account may be changed to apply to another family member.
• Anyone can establish a College Savings Plan account regardless of location or income level.
• Earnings are tax-deferred until withdrawn, and in some states, tax-free at the state level. Distributions made after 2001 are tax-free at the federal level.
• Contributions are not deductible at the federal income tax level; however, some states offer full or partial deductions for the donor if he or she is a resident.
• Contributions made on behalf of another person are considered a completed gift even though the donor retains the right to move the money to another beneficiary.
• If you make a gift on behalf of another person of more than the annual exclusion amount ($12,000 for 2007), you can elect to treat up to $60,000 of the contributions as if it had been made ratably over a five-year period.
• Contributions and earnings are not includible in the estate of the donor unless the donor made a gift larger than the annual exclusion amount and dies before the end of the five-year period.
• Under current rules, a 529 plan is not included as an asset of the beneficiary for federal financial aid. However, it is considered an asset of the contributor, so it could be included if the contributor is also the beneficiary or a parent of the beneficiary.
• College Savings Plans are ideal for estate planning - you can give up to $60,000 in a single year without incurring federal gift taxes. You remain in control of your gift, and may change beneficiaries or withdraw previously gifted money.
• Getting started is easy. Work with your area representative to learn more about 529 College Savings Plan
• Investments may be used at eligible public or private schools nationwide.
• Invest as little as you wish or as much as $60,000 per year without triggering federal gift taxes.

There are relatively few disadvantages to 529 College Savings Plans. However, each state should be researched completely before a decision to invest is made. Here are a few disadvantages:

• Any amounts attributable to earnings not used for education will be penalized unless a rollover to a family member is made.
• Financial aid that is not federally funded, i.e. at the college level, could be impacted if the plan is considered an asset of the student.
• Because the donor retains the right to change the beneficiary (and controls who inherits that right at death through a successor designation), the money may not be relied upon by the intended beneficiary or his or her parents.

How Do You Get Started?
Contact your financial representative and learn more about how to invest in a 529 College Savings Plan.

The 529 College Savings Plan is offered through a brokerage arrangement with Thrivent Investment Management Inc. 625 Fourth Ave. S. Minneapolis, MN 55415-1665, 1-800-THRIVENT (800-847-4836). Union Bank and Trust of Lincoln, NE, is the administrator for this plan. Funds invested in the 529 college savings plan have no bank guarantee, are not FDIC insured, and may lose value.

You are advised to consider the investment objectives, risks, and charges and expenses associated with 529 college savings plans before investing. More information on the 529 college savings plan is available in the issuer’s official statement. The official statement should be read carefully before investing.

You should investigate whether your state or your beneficiary’s state offers a qualified tuition plan for its residents and consider what, if any, potential state income tax or other benefits it offers. Please consult with a tax professional to receive tax analysis of the investments.

A $60,000 gift is viewed as an accelerated gift over five years. Any other gifts made to the same beneficiary by the contributor within the five years may result in a federal gift-tax liability. If the contributor dies within the five year period, a prorated portion of the contribution may be included in their taxable estate.