Illustration assumes a hypothetical initial $5,000 investment and monthly investments of $100 for a period of 18 years. It also assumes an annual investment return of 5%, compounded monthly, and a federal income tax rate of 24%. Investment losses could affect the relative tax-deferred investing advantage. It assumes no distributions are made during these periods. However, lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable. Changes in tax rates and tax treatment of investment earnings may impact the comparative results. Actual returns will vary.

Withdrawals of earnings from a tax-deferred account may be subject to ordinary income tax, and early withdrawals can be subject to an additional 10% penalty. Each investor should consider his or her current and anticipated investment horizon and income tax bracket when making an investment decision, as the illustration may not reflect these factors. These figures do not reflect any management fees or expenses that would be paid by a 529 plan participant. Such costs would lower performance.

This chart is shown for illustrative purposes only. Past performance is no guarantee of future results.