Take Advantage of the Georgia Higher Education Savings Plan

Advantage 1 – Your Money Works Harder

Tax-Free Withdrawals – Contributions to the Georgia Higher Education Savings Plan grow free from federal and state income tax. Through the power of compounding, the money you save in a tax-deferred account can provide greater potential for growth. And withdrawals used for qualified expenses will be free of both federal* and Georgia income tax**.

Georgia Tax Deduction – The amount you contribute may be deductible from your Georgia taxable income up to a maximum of $2,000 a year per beneficiary***. The State tax deduction is available to you every year, but contributions must be made by April 15 to receive the preceding year's deduction. This is the only 529 program to offer a state tax deduction to Georgia residents. (See the Program Disclosure Booklet for full details.)

Estate Benefits – If you have gift and estate tax considerations, you may also find the Georgia Higher Education Savings Plan to your liking. Not only are you able to accelerate gifting from your estate, you maintain control of the money. And with the ability to contribute until the total account balance of all GHESP accounts for the same beneficiary equals $235,000, the Program has ample room for gifting. Consult your tax advisor and see the Disclosure Booklet for further details.

Low Expenses – The low costs of the Georgia Higher Education Savings Plan put more of your investment toward education expenses. The low management fee covers all expenses associated with the Plan. No other fees or charges will be applied to your account.

Advantage 2 – It's Flexible to Meet Your Needs

Choice of Schools – Funds may be used at any accredited private or public college or university, trade, or graduate school, in Georgia or another state. Your savings can be applied to tuition as well as related qualified expenses such as books, equipment and other required supplies, fees, and certain room and board expenses.

Range of Investments – The Georgia Higher Education Savings Plan offers you five investment choices:

• Managed Allocation Option
• Aggressive Managed Allocation Option
• Guaranteed Option
• 100% Equity Option
• Balanced Fund Option

These choices vary in their investment strategy and degree of risk, allowing you to select an option or a combination of options that best fits your needs and investment philosophy. For a description of these investment options, please see the Investment Options section of the web site.

Transferability – If your child decides not to attend college, you can transfer funds in your account to certain other family members of the original beneficiary, including a sibling, first cousin, spouse – even yourself.

• You can roll over the money from another 529 Plan into your account to take advantage of the benefits of the Georgia Higher Education Savings Plan****
• An account owner can transfer funds from one investment option to another once per calendar year for the same beneficiary or upon a change in beneficiary.

Please see the Program Disclosure Booklet for more information.

No Income Restrictions or Annual Contribution Limits – Parents, grandparents, relatives and friends at any income level may open an account and contribute to the Georgia Higher Education Savings Plan for a beneficiary. While there is no annual contribution limit, there is an overall maximum account balance limit of $235,000. Your account may grow beyond the $235,000 maximum account balance limit based on the performance of the investment option(s) you've selected.

You're In Control – Unlike money invested through the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), with the Georgia Higher Education Savings Plan you maintain control of the funds in the account. However, if the money is used for something other than a qualified education expense, any earnings will be subject to federal and state income tax and a federally imposed additional tax. Please see the Program Disclosure Booklet for further details.

Low Minimum Contribution – An account may be opened with as little as $25 by check, electronic funds transfer, or automatic contribution plan. The flexibility of being able to start with a small investment and to increase contributions over time as one's savings goals or financial situation changes can make saving for college a reality for many people.

Advantage 3 – You Benefit from Professional Management

Professional Money Management – TIAA-CREF Tuition Financing, Inc. (TFI) provides investment management, marketing, and overall administration for the Georgia Higher Education Savings Plan. TFI, the acknowledged leader in providing program management for 529 savings plans, manages several other state 529 programs.

TFI is part of TIAA-CREF, a financial services organization with over 2 million participants and more than $260 billion in assets under management. For over 80 years, TIAA-CREF has been providing investment management solutions for the education and research communities. The company has gained a reputation for innovative products, solid investment performance, trustworthiness, superior customer service, and exceptionally low fees.