What is a 529 savings plan?
A 529 savings plan is a tax-deferred, qualified tuition program. It is designed specifically to create savings for higher education. It can used at any eligible college, university or graduate school in the U.S. Tax-deferred growth on earnings and federal income tax-free withdrawals set 529 savings plans apart from other college savings investments.

Some 529 plans, such as the John Hancock Freedom 529, offer flexible contribution options, a variety of investment choices, and tax advantages to enhance growth.

Why would I want one?
So you can help make a college education a reality for a child or grandchild. It's a tall order. One that's growing taller all the time. Average costs at a private, 4-year college today are almost $100,000. Look for that number to soar to $228,000 by 2022.^*

A 529 plan offers tax advantages and other unique features that can help you meet these staggering costs. For example, with a 529, earnings are tax-deferred and can be reinvested to enhance growth. What's more, withdrawals made for qualified educational expenses - tuition, fees, books, room and board; even some expenses for special needs students - are free from federal income tax.^**

A 529 plan also offers accelerated gifting and can be funded by depositing up to five years of contributions at once - without a federal gift tax. The maximum contribution is $55,000 per beneficiary; $110,000, if married filing jointly.^***.

Please contact a financial consultant to help select the most appropriate college savings strategy for you.

* The Annual Survey of Colleges of the College Board and Data Base, 2003-2004. © 2003 College Entrance Examination Board. All rights reserved. www.collegeboard.com.

** Tax provisions allowing for federal income tax-free withdrawals for qualified expenses will expire 12/31/10 unless extended. State laws will vary. If your state offers a plan you may want to consider what, if any, potential state income tax benefits it may offer.

*** Donor must elect that the gift be treated as having accrued over a five-year period. If additional gifts are made to the same beneficiary during this five-year period, a federal gift tax may be levied. If the donor dies within this five-year period, a pro rata share will be included in the donor's estate for estate tax purposes.