What are Tax-Free Withdrawals ?

Official source

Some investment accounts require you to pay state and/or federal taxes on account earnings when you withdraw funds (take a distribution).

However, the earnings accrued in an Edvest 529 account can be withdrawn from an account 100% tax-free at the state and federal level when paying for qualified higher education expenses.

Here's a simple hypothetical example:

You opened an Edvest 529 account with $1,000. Over the life of your account, it grew to $1,100. While in the account, the $100 of growth was not taxed.

You withdrew that $1,100 from your 529 account to pay for a qualified expense, like college tuition, and you were not subject to federal and state taxes on any portion of the distribution.

Want to know what a qualified expense is? Click here for examples .

The above illustration is intended to show a hypothetical example of the principle of compounding. The example does not include the impact of any investment fees, expenses or taxes that would be associated with an actual investment. If such costs had been taken into account, the results shown would have been different. It also does not factor in market volatility.

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What are Tax-Free Withdrawals ?

Official source

Some investment accounts require you to pay state and/or federal taxes on account earnings when you withdraw funds (take a distribution).

However, the earnings accrued in an Edvest 529 account can be withdrawn from an account 100% tax-free at the state and federal level when paying for qualified higher education expenses.

Here's a simple hypothetical example:

You opened an Edvest 529 account with $1,000. Over the life of your account, it grew to $1,100. While in the account, the $100 of growth was not taxed.

You withdrew that $1,100 from your 529 account to pay for a qualified expense, like college tuition, and you were not subject to federal and state taxes on any portion of the distribution.

Want to know what a qualified expense is? Click here for examples .

The above illustration is intended to show a hypothetical example of the principle of compounding. The example does not include the impact of any investment fees, expenses or taxes that would be associated with an actual investment. If such costs had been taken into account, the results shown would have been different. It also does not factor in market volatility.