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Tax Benefits
Guarantee a Smart Investment
Enjoy tax-free savings and withdrawals
Because GET is a state 529 plan, the after-tax money you put in will grow tax-free. The money you withdraw will be tax-free too as long as you use it for tuition, room and board, books and other qualified higher education expenses.
Take advantage of gift tax and estate planning benefits
Generally, you can buy up to 500 GET units per child in one year at a current price of $38,000 without incurring any federal gift taxes. You maintain control of your GET account but the value of your account is not included in your taxable estate. Review GET Program Details and consult your tax advisor for details.
Receive favorable financial aid treatment
If the parent is the account owner, the GET account is considered an asset of the parent and treated like any other parental asset in determining a family's eligibility for federal financial aid.
How an investment in GET has grown over time
Families that bought GET units in 1998 have earned an 80 percent return on their investment. Of course, the actual increase in value of your GET account will vary depending on when you buy your units, when your child goes to college and how much tuition increases over time.
The GET unit price includes a premium over current tuition. Consequently, you should plan to hold your GET units for at least two years before you can expect to see any real gain. GET units may not be the best choice if your child plans to attend college within two years.
How GET differs from other state 529 plans
State prepaid college tuition plans, like GET, and state college savings plans are known as 529 plans after the IRS federal tax code that authorizes them.
Under both plans, the after-tax money you put in will grow tax-free and the money you withdraw will be exempt from federal income taxes as long as you use it for qualified higher education expenses.
With a college savings plan, you shoulder all of the investment risk and worries associated with volatile financial markets. With GET, the state assumes the investment risk so you don't have to worry.
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529 Prepaid Tuition Plan (GET) |
529 College Savings Plan |
| Tax-free growth |
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| Tax-free withdrawals |
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| Favorable financial aid treatment |
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| Investment choice and risk |
State chooses investments, shoulders investment risk |
You choose investments, shoulder investment risk |
| Future value of your account |
Guaranteed by the state to keep pace with rising college tuition* |
Based on the performance of your chosen investments |
* Based on resident undergraduate tuition and state-mandated fees at the most expensive Washington public university.
Continue: Flexibility & Control
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