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, visit the Tomorrow's Scholar website.

Tax Advantages:

• Federal and state tax-deferred growth.
• No federal tax on qualified withdrawals.
• No Wisconsin income tax on qualified withdrawals.
• In 2024, contributions of up to $5,000 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 $18,000 per beneficiary; $36,000 for married couples per beneficiary.
• No gift tax on contributions up to $90,000 per beneficiary — prorated over five years; $180,000 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 twice 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.