Features and Benefits
Earnings on your SMART529 WV Direct account grow tax-deferred, leaving all of your money invested to accumulate for college.
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Tax Advantages

  • Earnings on your SMART529 WV Direct account grow tax-deferred, leaving all of your money invested to accumulate for college.
  • Distributions used for qualified higher education expenses (tuition, fees, room, board, books, equipment and supplies) are federal income tax free at any eligible educational institution nationwide including colleges, universities, graduate schools and trade schools. Non-qualified withdrawals are taxable as ordinary income to the extent of earnings and may also be subject to a 10% federal income tax penalty. Such withdrawals may have state income tax implications.

    Other qualified expenses include:
    • K-12 tuition expenses up to $10,000 per year*
    • Repayment of qualified student loans or a maximum lifetime limit of up to $10,000. This includes amounts of repaid principal and interest on any qualified student loan of either a 529 plan designated beneficiary or a sibling of the designated beneficiary.**
    • Apprenticeship program registered and certified with the Secretary of Labor under the National Apprenticeship Act. Includes expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in a program.**
  • Anyone can contribute up to $18,000 per year ($36,000 for married couples filing jointly) to a beneficiary's SMART529 account without gift-tax consequences. Contributions may be accelerated up to $90,000 ($180,000 for married couples) once per 5-year period without incurring federal gift taxes.1

 

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Account Owner Control

  • As the account owner you maintain complete control of your SMART529 account, including how contributions are invested and when withdrawals are made
  • There is no set deadline for using your account assets. The proceeds can be withdrawn by you at any time and at any age, subject to potential penalties for non-qualified withdrawals.
  • You can change your beneficiary without a federal income tax liability, as long as the new beneficiary is a family member of the current beneficiary (an "eligible beneficiary"). Please see the Offering statement for the definition of eligible beneficiaries.

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Flexibility

  • Your SMART529 account can be used to cover qualified higher education expenses at thousands of eligible institutions throughout the country, including colleges, universities, vocational schools, and private and religious K-12 schools.
  • An account can be opened in anyone's name, including your own
  • If the beneficiary receives a scholarship, you can withdraw an amount equal to the scholarship from your account without a federal income-tax penalty. The money must be used to pay for qualified education expenses or the earnings will be subject to ordinary income tax, but not the 10% federal income tax penalty.
  • Tax-free transfers between investment options are allowed twice per calendar year
  • Change of plans? If your child chooses not to attend college, you may rollover a portion of your 529 account funds to a Roth IRA, subject to certain requirements. 

 

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Simple, Convenient Contributions

  • Anyone can contribute to a SMART529 account, including friends and relatives. It's easy to make a gift contribution to a SMART529 account
  • If available contribute using Payroll Direct Deposit — the easiest option!
  • Contribute as often as you like. SMART529's Automatic Investment Program makes regular contributing directly from a checking or savings account simple.
  • There are no limits on contributions until your account balance exceeds $550,000.

 

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Investment Options

  • SMART529 offers a wide range of investment options ranging from conservative to aggressive. Investing is convenient with asset-allocation models based on the beneficiary's age (Age-Based Portfolios), or based on your risk tolerance and the time before college starts (Static Portfolios)
  • The Age-Based and Static Portfolios are automatically rebalanced back to their original allocations on a quarterly basis.
  • Investment returns are not guaranteed, and you could lose money by investing in a 529 plan.

 

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*Hartford Funds does not provide tax advice. Investors should work with a financial intermediary to select an appropriate investment option based on the investor's goals, particularly if the investor is considering using the assets for K-12 tuition. The SMART529 investment options were designed for saving for college, particularly the Age-Based Portfolios. Certain Portfolios may be more appropriate for saving for K-12 tuition than others. State income tax treatment varies by state. Please consult with a local tax professional for more information. 

**State income tax treatment varies by state. Please consult with a local tax professional for more information. 

1 Any additional gifts to the same beneficiary in that 5-year period would be subject to federal gift tax. If the donor elects to treat the gift as being made over 5 years, and the donor dies prior to the end of that 5-year period, the portion of the gift allocable to the period after the donor's death will be included in the donor's estate. Estate tax treatment may differ by state. Please consult your tax professional for more information.

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SMART529 is a college savings plan offered by the Board of Trustees of the West Virginia College and Jumpstart Savings Programs and administered by Hartford Funds Management Company, LLC ("HFMC").

SMART529 Direct is available to residents of West Virginia or to non-residents where the beneficiary is a resident of West Virginia. West Virginia (WV) provides certain tax advantages to WV taxpayers that invest in SMART529 Direct. Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

Investments in SMART529 are not guaranteed or insured by the State of West Virginia, the Board of Trustees of the West Virginia College and Jumpstart Savings Programs, the West Virginia State Treasurer's Office, HFMC, The Hartford Financial Services Group, Inc., the investment sub-advisers for the Underlying Funds or any depository institution. Investments in SMART529 are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.

Investments in SMART529 are subject to certain charges, which will reduce the value of your Account as they are incurred. Please see the Offering Statement for details of charges or fees that apply to the specific SMART529 savings plan.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

You should carefully consider the investment objectives, risks, charges and expenses of SMART529 and its Underlying Funds before investing. This and other information can be found in the Offering Statement for SMART529, including privacy notices, and the prospectuses or other disclosure documents for the Underlying Funds, which can be obtained by calling (866) 574−3542. Please read them carefully before you invest or send money. SMART529 is distributed by Hartford Funds Distributors, LLC. Member SIPC.

"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.

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