TAX INCENTIVES THAT MAKE SAVING EASIER

Saving for college with Scholar's Edge may bring a wealth of tax benefits.

  • Investments may grow faster than those in comparable taxable accounts
  • Withdrawals are free from federal taxes, and from state taxes where applicable, as long as the money is used for qualified higher education expenses.1

New Mexico residents can take advantage of state tax deductions when investing in Scholar’s Edge.2 Residents of several other states may also be eligible for a state tax deduction from their own state when investing in Scholar’s Edge.3 Regardless of where you live or plan to go to school, you can take advantage of the many benefits of Scholar’s Edge.

Give the Gift of Scholar's Edge

Scholar’s Edge has gift and estate planning advantages. Parents and grandparents can contribute $14,000 per child in a single year ($28,000 per couple). You can also take advantage of five years’ worth of tax-free gifts at once.4 Completed gifts are removed from your estate for tax purposes, so the money goes toward the child’s education, not taxes.4



1 If money in a 529 account is used for non-qualified purposes, the earnings portion of the withdrawal will be subject to ordinary federal income tax, plus an additional 10% federal income tax and any applicable state income tax.

2 New Mexico residents who invest in Scholar's Edge can deduct their contributions from their taxable New Mexico income. When it's time to withdraw the funds, New Mexico residents won't owe state taxes as long as the assets are used for qualified higher education expenses.

3 Some states restrict favorable tax treatments to residents who invest in their state's own plan. Before investing through Scholar's Edge, find out if your home state offers any state tax or other benefits that are available only for investments in that state's 529 plan. States that offer tax parity include Arizona, Pennsylvania, Maine, Kansas and Missouri. Source : www.finaid.org, March 2013.

4 Account owners cannot make another tax-free gift to the same beneficiary for five years from the original contribution. If the account owner dies within five years of the funding date, a prorated portion of the contribution allocable to the remaining years in the five-year period, beginning with the year after the contributor's death, will be included in his or her estate for federal estate purposes. Consult your tax advisor for information about how 529 tax treatment would apply to your situation.

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This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.

Scholar's Edge® is operated as a qualified tuition program offered by The Education Trust Board of New Mexico and is available to all U.S. residents. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager for Scholar's Edge and OppenheimerFunds Distributor, Inc. is the distributor of Scholar's Edge. Some states offer favorable tax treatment to their residents only if they invest in the state's own plan. Investors should consider before investing whether their or their 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 and should consult their tax advisor. These securities are neither FDIC insured nor guaranteed and may lose value.

Before investing in the Plan, investors should carefully consider the investment objectives, risks, charges and expenses associated with municipal fund securities. The Plan Description contain this and other information about the Plan, and may be obtained by asking your financial advisor, by visiting www.scholarsedge529.com or calling 1.866.529.SAVE (1.866.529.7283). Investors should read these documents carefully before investing.

Scholar's Edge® is distributed by OppenheimerFunds Distributor, Inc. Member FINRA, SIPC
225 Liberty Street, New York, NY 10281-1008
Scholar's Edge® and the Scholar's Edge® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.