529 College Savings Plan
Canon Medical Systems shares your concerns about providing a secure financial future for yourself and your family, and that’s why we offer the 529 College Savings Plan.
The 529 College Savings plan is a federally tax-advantaged way to save for higher education for your child, yourself, or another family member. With the convenience of payroll deduction, you can contribute after-tax dollars to a college savings account until your total account value (contributions and investment earnings) equals $395,000.
While 529 savings plans are federally approved, some states also offer a state income tax deduction or tax credit, but not all. Before you decide to contribute to this plan, you may want to consult with your tax advisor about your state's laws.
The federal government also allows you to withdraw up to $10,000 per year tax-free from your 529 plan to pay for K-12 tuition expenses. That can be a valuable benefit if you are paying for elementary or high-school tuition.
Because you contribute after-tax dollars, you may continue participating in the plan even if you leave the Company.
The Company offers the 529 College Savings Plan through CollegeBound 529. Administration of the plan is by Ascensus College Savings and investment management is provided by Invesco.
Federal tax advantages
Your investment earnings are tax-deferred. In addition, when you make a withdrawal for qualified educational expenses, that money is exempt from federal income tax. Withdrawals for non-educational expenses will be taxed as ordinary income to you, and an additional 10% penalty will be assessed on your investment earnings.
Investment options
To help your account grow, you have several professionally managed investment options to choose from. Invesco is a global investment management firm who offers an investment menu of age-based and target risk portfolios, plus individual portfolios that allow you to customize your investment lineup.
Invesco does not offer financial advice for this plan—you may want to contact your financial advisor to discuss your unique situation.
How the plan works
- Enroll. Enroll in the plan by setting up a CollegeBound Saver account at the 529 enrollment website.
- Elect a contribution amount. To elect a contribution amount, complete the 529 contribution form and send it to the Benefits Department. You may fax the completed form to 714-276-0693 or scan/email it to Benefits@us.medical.canon.
- Make contributions. Your 529 contributions will be made on an after-tax basis through convenient payroll deductions.
- Manage your account. After you create your account, you will have access to your CollegeBound 529 account.
To change your contribution amount or stop contributions, complete the 529 contribution form and send it to the Benefits Department. You may fax the completed form to 714-276-0693 or scan/email it to Benefits@us.medical.canon.
Online resources
The CollegeBound 529 website offers a variety of educational resources and tools, such as a college savings calculator, college savings plan comparison chart, summary of investment options, frequently asked questions, and more.
Ugift gifting program
Saving for college can take a village. Family and friends who want to help a student go to college can contribute through Ugift, the CollegeBound 529 gifting program.
The service is convenient and easy to use:
- Open a CollegeBound 529 account and create your user name and password.
- After logging in to your account, opt in to Ugift. There, you can set up gifting occasions, create mailing lists, send invitations, and keep track of gifts received.
- You will receive a unique Ugift code specific to your account's beneficiary. The code is valid for the life of your account, or until the date you opt out of Ugift.
- Share your Ugift code with family and friends. You can use the invitation feature on your CollegeBound 529 account to send invitations by email, Facebook, or Twitter.
- Family and friends can make their gift contribution at Ugift529.
For more information
Call Ascensus College Savings at 877-615-4116
Visit CollegeBound 529
See the College Savings Plan summary plan description for more information about these benefits