Investment Management

Becoming Voya™ Investment Management in May 2014

About Tomorrow's Scholar® 529 Program

The Tomorrow's Scholar® advisor-sold 529 program is a tax-advantaged way for families nationwide to make college possible. For details on the program, including planning tools, investment menus and application forms, go to the Tomorrow's Scholar website.

Contributions:

Flexible contribution options include; check, electronic funds transfer, federal wire, automatic investment plan and payroll deduction.

Contribution Limit:

The maximum contribution limit is currently $330,000 per beneficiary.

Payment Eligibility:

Savings may be used to pay for tuition, room and board, supplies and equipment required for enrollment at any eligible school in the United States or abroad.

Tax Advantages:

  • Federal and state tax-deferred growth.
  • No federal tax on qualified withdrawals.
  • No Wisconsin income tax on qualified withdrawals.
  • Contributions of up to $3,000 per beneficiary are deductible from Wisconsin taxable income each year if the beneficiary is your client's child, grandchild, great-grandchild, niece, nephew, or yourself.

Tax Treatment of Contributions:

  • Contributions are considered completed gifts for federal gift and estate tax purposes.
  • No gift tax on annual contributions of $13,000 per beneficiary; $26,000 for married couples per beneficiary.
  • No gift tax on contributions up to $70,000 per beneficiary — prorated over five years; $140,000 for married couples.

Tax Treatment of Withdrawals:

Withdrawals used to pay for qualified expenses at eligible institutions are distributed tax-free.

Non-qualified withdrawals are subject to regular income tax and a 10% penalty on earnings.

Non-Qualified Withdrawals with Exceptions:

Withdrawals not used to pay qualified education expenses because the beneficiary has died, become disabled or received a scholarship are subject to regular income tax, but there is no 10% penalty.

Changes to Investment Options:

An account owner may change the investment selection once per calendar year and at any time with a change in the designated beneficiary of the account.

Changes to Beneficiaries:

Participants may change the beneficiary at any time. There are no tax consequences as long as the new beneficiary is a family member of the current beneficiary.

Tomorrow's Scholar is Wisconsin's state-sponsored college savings plan administered by the College Savings Program Board and the State of Wisconsin. ING U.S. Investment Management provides investment management and administrative services for Tomorrow's Scholar. Shares in the program are distributed by ING U.S. Investment Management. This Web site is accompanied by a current program description for the Tomorrow's Scholar plan.

An investor's or a designated beneficiary's home state may offer state tax or other benefits that are only available for investments in that state's qualified tuition program. Please consider this before investing.

Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

ING U.S. Investment Management does not control or endorse and is not responsible for third-party Web sites to which this site links.

An investor should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. More information about municipal fund securities is available in the issuer's Program Description. You may download a Program Description or by calling 866-677-6933. The Program Description should be read carefully before investing.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE