BB&T CollegeWealth^® 529 Savings

College prices are rising more rapidly than the prices of other goods and services. The average debt for students pursuing a bachelor's degree is $17,700 for public universities and $22,375 for private universities upon graduation, while students pursuing an associate’s degree incur an average debt level of $7,125 upon graduation. From 2003 to 2008, the median debt for all students rose 11%.*

To ensure your loved one will be able to attend college, it's more important than ever to plan ahead and save for the rising cost of education. Don't wait any longer — kids grow up fast, so the time to begin saving is now.

A Section 529 Plan is a state-sponsored, tax-advantaged college savings program. Named after Section 529 of the Internal Revenue Code, these plans provide a flexible way to save for college with additional incentives such as tax-free earnings, tax-free withdrawals (when used for qualified education expenses) and possible state tax deductions. Consult your tax advisor for details.

BB&T CollegeWealth 529 Savings provides the same tax advantages that you'll likely find in other 529 Plans, but offers the extra security of FDIC protection*. Your CollegeWealth 529 Savings account earns a competitive interest rate, and you can be confident that your savings will be there when it's time to pay for college expenses.

The FDIC has temporarily increased coverage from $100,000 to $250,000 per depositor per bank through December 31, 2013. On January 1, 2014, pending further action from the FDIC, the standard FDIC insurance limit will return to $100,000.

Earnings on withdrawals used to pay for qualified higher education expenses are excluded from income for federal tax purposes. Earnings in your CollegeWealth 529 Savings account also grow tax-free.

State tax treatments vary. Virginia taxpayers can receive up to a $4,000 state tax deduction per year for every BB&T CollegeWealth 529 Savings account. Other states may offer residents tax incentives as well. Consult your tax adviser for more information.

BB&T CollegeWealth 529 Savings is sponsored by Virginia College Savings Plan (VCSP), the largest 529 Plan provider based on assets in the country. VCSP services most aspects of your BB&T CollegeWealth 529 Savings, including account changes, withdrawals and rollovers. Contact VCSP at 1-888-567-0540 for more information.

When you open your CollegeWealth 529 Savings account, you must designate a beneficiary. Your beneficiary can be a relative, friend or yourself, and must be either a U.S. citizen or a legal U.S. resident. There is no age restriction, but your beneficiary must be living at the time you open the account. Only one beneficiary can be assigned per account.

Any U.S. citizen or legal U.S. resident who is at least 18 years of age may open a BB&T CollegeWealth 529 Savings account. There are no state residency requirements or income conditions associated with opening an account. There can be only one account owner per account, but you may designate an authorized individual who will have access to your BB&T CollegeWealth 529 Savings account information. In addition, more than one person may contribute to an account.

No. But you can designate an authorized individual of your choice to have access to your CollegeWealth 529 Savings account information.

You can transfer money quickly and easily from your BB&T accounts using BB&T OnLine. We recommend that you set up recurring transfers to make systematic contributions to your account. Or you can make deposits at any of our over 1,800 financial centers.

There are no annual limits or minimum amounts on contributions to your BB&T CollegeWealth 529 Savings account. However, your contributions and account earnings are limited to a maximum of $350,000 per beneficiary. Keep in mind that any FDIC limits will apply, and check with your financial advisor for rules governing tax deductibility in your state.

You can roll funds from another qualified tuition program, Coverdell Education Savings account or qualified U.S. Savings Bonds. The account owner must be the same for both accounts.

If you wish to rollover funds, you must complete a Virginia College Savings Plan rollover form. Rollover payments will be issued directly to your BB&T CollegeWealth 529 Savings account within 60 days.

Generally speaking, any accredited higher-education school eligible to accept federal financial aid is eligible, including colleges and universities, graduate schools, community colleges, vocational and technical schools and select private career, technical and international schools. To see if your school is eligible, visit www.fafsa.ed.gov.

Contact Virginia College Savings Plan when it comes time to make a withdrawal from your CollegeWealth 529 Savings account. You will need to complete a Virginia College Savings Plan Intent to Enroll form prior to making any withdrawals. In most instances, VCSP will contact the school and any payments will be made directly to the school. Contact VCSP at 1-888-567-0540 for more information.

At any time, you may also request non-qualified withdrawals from your BB&T CollegeWealth 529 Savings. However, the earnings for non-qualified withdrawals will be subject to federal income tax as well as a 10% federal penalty tax. Virginia residents will also be required to pay state income tax on the earnings.

Qualified higher education expenses include tuition, mandatory fees, books, room and board and computer–related equipment for half-time to full-time students attending an eligible school.

If the account owner is a parent or the student, it may. Any investments or savings can affect federal financial aid eligibility. But keep in mind that not all financial aid is grant money — a large percentage of the aid package may be comprised of loans that must be paid back. According to a recent College Board report titled "Trends in Student Aid 2008", loans constituted 49% of the financial aid package for undergraduate students, and 65% for graduate students.

CollegeWealth 529 Savings accounts must be used (or the account must be closed) within 10 years of the beneficiary's projected high school graduation date. Beneficiaries who have already completed high school at the time the account is opened have ten years to use their BB&T CollegeWealth 529 Savings funds. An extension may be granted upon request. Contact VCSP at 1-888-567-0540 for more information.

You are encouraged to designate a person who will assume ownership of your BB&T CollegeWealth 529 Savings account in the event that you die or become legally incompetent. You can designate this person either on your BB&T online account application or later by contacting Virginia College Savings Plan.

If there is no successor on your account, VCSP reserves the right to determine the appropriate successor owner. This would likely be the executor of your will, or VCSP would establish a custodial account for your beneficiary.

You can designate a successor owner who will assume ownership of your account in the event of your death (or legal incompetence) on your BB&T online account application. You may also designate or change your successor owner at any time by contacting Virginia College Savings Plan. The individual you select must be at least 18 years old at the time of designation.

Yes. You may change your beneficiary at any time by contacting Virginia College Savings Plan.

No. There are no monthly maintenance fees, administration fees or distribution fees for the BB&T CollegeWealth Savings account.

You can open your account with as little as $25.

You can view, print and save your monthly account statements through BB&T OnLine. You can also setup Alerts to notify you when new account statements are available. When you open your account online with BB&T, you will automatically be enrolled in BB&T OnLine.

Virginia College Savings Plan will issue any tax–related documents to you at the conclusion of the tax year.

For account changes other than name or address updates, please contact VCSP at 1-888-567-0540.

If you wish to change your name or address, please visit any one of the 1,800 BB&T financial centers or contact BB&T at 1-800-BANK-BBT (1-800-226-5228) and select option 4.