Glossary

1 5 A B C D E F G H I L M N P Q R S T U W Y
1 5 A B C D E F G H I L M N P Q R S T U W Y

G

  • Gift Tax

    Gift tax is a tax charged to the giver of a gift to another person. There is an annual gift tax exclusion of $17,000 per recipient or $34,000 for married couples for 2023.

  • Gift-Tax Front-loading

    529 plans provide 5-year gift-tax front-loading, where a gift that is greater than the annual gift tax exclusion is treated as being given proportionately over a 5-year period. This allows contributors to give up to $85,000 per beneficiary as a lump sum contribution to the beneficiary’s 529 plans. It’s excluded from gift tax as long as the giver does not die before the end of the 5th year.  

  • Grants

    A grant is a form of aid that is often based on the student’s financial need.

  • Growth

    Growth refers to the appreciation of an asset in value.

  • Growth Fund

    A growth fund is a collection of stocks that have the potential for growth in revenue or earnings. Growth stocks often have above-average prices compared with earnings because of the expectation that the earnings will increase.

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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

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