There's no shortage of ways to save for your child's education. Once you know that you're ready to start, you must decide how.

Section 529 Plans
Section 529 plans can offer tax and other benefits unlike other types of college savings vehicles. Contributions made to a Section 529 Plan grow tax-deferred. Qualified distributions, taken for qualified higher-education expenses, are free from federal income taxes.* Depending upon your state of residence and the plan you own, qualified distributions may also be state income-tax free.**

529 plans offer professional management and provide a way for you to retain control of the account's assets on behalf of the account's beneficiary. Subject to some individual plan restrictions, generally 529 plans have no age, income or residency restrictions for participation.

Two Types of Section 529 Plans
Distinct differences exist between the two types of Section 529 Plans: Prepaid and Savings.

• Prepaid—A prepayment plan allows a donor to purchase a prepayment contract and select a beneficiary who will receive one or more years of future college tuition and other specified costs at a current rate. Most plans do not unilaterally guarantee that prepaid plans will cover the complete cost of future tuition at today's rates; however, these plans are a way to hedge against the rising cost of tuition.

• Savings—In a savings plan, a donor contributes to an account and then selects an investment option within this account that is anticipated to grow in value over time. Generally, a professional money manager contracted by the state will manage the collective assets of the plan.

Investment Option Flexibility
Section 529 Plan account holders have the ability to roll the assets of their account to a different Section 529 Plan or adjust the investment options within their current 529 plan once every 12 months.

Account Control
You retain control of the account's assets even when the beneficiary reaches the age of majority. This offers you the ability to change the account's beneficiary, and allows you to determine when distributions are taken from the account.

Other Features of 529 Plans
Additional features of 529 plans include estate planning and special gifting options. Contribution limits vary by state and plan, and may be greater than other types of college savings options.

529 Plans Offered Through Northwestern Mutual Investment Services, LLC (NMIS)
The following is a list of 529 plans available through a NMIS Registered Representative. These plans are run by various states and sponsored by various investment management companies.

529 Plan Revenue Sharing Arrangements
NMIS has entered in to arrangements with Pershing and fund families directly to pay additional compensation for marketing and distribution related expenses and to participate in certain training, education and sales events. These fund families may also be program managers for 529 College Savings Plans and the funds you purchase in the plan may be a factor in determining the amount of the payment. For these plans, payment has been or will be received. The source and the amount of such payment will be furnished upon written request of the client.