Savings for College

Saving for Education

A Brief History

For several decades, American families have acknowledged both the value of an education and the escalating price of college tuition. Education is integral to the success of our children and grandchildren, and while paying for college could be one of the largest expenditures you will incur, it just might be the best investment you ever make. That is why it is important to start saving early, and a 529 plan is a great savings option to help you achieve your college savings goals.

Named after the section of the Internal Revenue Code that created them, 529 plans are designed specifically to save for college, offering various tax benefits and other important features such as estate planning and gifting benefits. It's important to remember that these and other benefits may be conditioned on meeting certain requirements.

529 Timeline

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NOTICE: CollegeAccess 529 Plan accounts are not insured by any state, and neither the principal deposited nor any investment return is guaranteed by any state. Furthermore, the accounts are not insured, nor the principal or any investment return guaranteed, by the federal government or any federal agency.

Before investing, an individual should consider whether their state of residency — or their intended designated beneficiary's state of residency — offers any benefit, such as a state tax deduction, or any other benefits that are only available for investments in that state's 529 savings program.

An investor should consider the investment objectives, risks, and charges and expenses of the CollegeAccess 529 Plan before investing. This and other important information is in the Plan Disclosure Statement, which should be read carefully before investing, and which is available on this Web site. Click here to download a copy.

The Program Manager for the CollegeAccess 529 Plan is Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY 10019-7585, 1-866-529-7462. The Plan is issued by the South Dakota Higher Education Savings Trust and is underwritten by Allianz Global Investors Distributors LLC.

Withdrawals from a 529 Plan for qualified expenses are free from federal income tax. Qualified expenses include tuition and fees, room and board, books and other supplies.

State taxes may apply for residents of states other than South Dakota. Speak to your tax or financial advisor.

Non-qualified withdrawals are subject to federal income tax and a 10% penalty tax on earnings, with some exceptions, and may also be subject to state tax.

Please see the Plan Disclosure Statement for our privacy policy.