Tax-advantaged investing, simplified.

It’s simple: What you save on taxes could go towards college savings.

HI529 offers unique tax advantages, including:

  • Tax-deferred growth. Earnings grow tax deferred from federal and state income taxes.
  • Tax-free withdrawals. Withdrawals for qualified higher education expenses are exempt from federal and state tax.1. Withdrawals used to pay for K-12 tuition expenses are free from federal income tax, however, are considered a Hawaii non-qualified withdrawal so are subject to Hawaii state income tax.2
  • Gift-tax benefits. Contributions qualify for the $15,000 (or $30,000 for married couples filing jointly) federal annual gift tax exclusion per beneficiary.
  • Estate planning benefits. Reduce your personal taxable estate by making five years' worth of gifts (up to $75,000; $150,000 for married couples filing jointly) in one lump sum.3

 


1Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. See the Disclosure Booklet for more details on qualified expenses. 
2Since different states have different tax provisions, if you or your beneficiary, as applicable, are not a Hawaii taxpayer, the state(s) where you pay income tax may differ in its state income tax treatment of K-12 tuition expenses. You should consult your own state’s tax laws or your tax advisor for more information on your state’s taxation of withdrawals for K-12 tuition expenses.
3In the event you do not survive the five-year period, a pro-rated amount will revert back to your taxable estate.

 

 

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