fidelity advisor 529 plan

84 Pages·2016·1.79 MB·English

January5,2021
FIDELITY ADVISOR 529 PLAN
OFFERING STATEMENT
EstablishedandmaintainedbytheStateofNewHampshire.ManagedbyFidelityInvestments®.
Neither the State of New Hampshire nor Fidelity Investments makes any guarantees of any
type in regard to participation in the Plan.
IMPORTANT PLAN INFORMATION
Š Pleaseconsultyourowntaxadvisorwithrespecttoyour
specificsituation.
Š Totheextentanytaxadviceisgiven,itissetforthtosupport
themarketingoftheFidelityAdvisor529Plan.
Š Totheextentanytaxadviceisgiven,itmaynotbeusedfor
thepurposeofavoidingthepaymentoffederaltaxpenalties.
Š NeithertheStateofNewHampshirenorFidelityInvestments
makesanyguaranteesofanytypeinregardtoparticipationin
theFidelityAdvisor529Plan.Investmentreturnsarenot
guaranteed.Youraccountmaylosevalue.
Š Somestatesofferfavorabletaxtreatmentorotherbenefitsto
theirresidentsonlyiftheyinvestintheirownstate’splan.
Pleasecarefullyconsiderthesefactorsbeforemakingany
investmentdecision.Youmaywanttoconsultwithaqualified
taxprofessionaltolearnmoreaboutthebenefitsor
consequencesofinvestinginaplanofferedbyyourstateor
thedesignatedBeneficiary’sownstate.
Š Section529QualifiedTuitionProgramsareintendedtobe
usedonlytosaveforQualifiedHigherEducationExpenses.
TheseProgramsarenotintendedtobeused,norshouldthey
beused,byanytaxpayerforthepurposeofevadingfederalor
statetaxesortaxpenalties.Taxpayersmaywishtoseektax
advicefromanindependenttaxadvisorbasedontheirown
particularcircumstances.
Š Ingeneral,youshouldperiodicallyassess,andifappropriate,
adjustyourinvestmentchoiceswithyourtimehorizon,
includingyoureducationtimehorizon,risktolerance,and
investmentobjectivesinmind.
Š Investingisanimportantdecision.PleasereadallOffering
Materialsintheirentiretybeforemakinganinvestment
decision.
The Fidelity Advisor 529 Plan
Key Features and Benefits
(Fact Sheet)
FEATURE DESCRIPTION EXPLANATION/REASON
FidelityAdvisor 529Plan TheFidelityAdvisor529Planisa529collegesavingsplan.529
529Plan plansaretax-favoredplansauthorizedundersection529ofthe
InternalRevenueCode.TheFidelityAdvisor529Planisoffered
bytheStateofNewHampshireandmanagedbyFidelity
Investments(Fidelity).More,page62.
ThefeaturesoftheFidelityAdvisor529Plandescribedinthis
OfferingStatementreflectthetermsoftheagreementbetween
theStateofNewHampshireandFidelityInvestments.More,
page63.
InitialMinimumContri- $0 Thereisnoinitialminimumcontribution.
bution
SystematicInvestment $50/month Theminimuminvestmentforsystematicinvestingis$50/month
Plan $150/quarter or$150/quarter.
MaximumContribu- $542,000per Section529oftheInternalRevenueCode(IRC)requiresthat
tionLimit2 Beneficiary investmentsintheNewHampshireHigherEducationSavings
PlanTrust(Trust),whichincludestheFidelityAdvisor529Plan
Portfolios,belimitedtoamountsthatcanreasonablybe
expectedtobeusedtomeetqualifiedhighereducation
expensesforanindividual.ThePlan’sAdvisoryCommission
determinesanewmaximumcontributionlimiteachyearbased
onseventimestheannualcostofattendingthemostexpensive
schoolinNewHampshire(includingtuition,roomandboard,
andfees).More,page13.
Participation AllU.S.Residents ThePlanisopentoallParticipantsandBeneficiaries,regardless
oftheirstateofresidence.ParticipantsmustbeU.S.residents,
haveaSocialSecuritynumberorTaxIdentificationNumber
(TaxID),andbeatleast18yearsofage.More,page12.
GiftandGeneration- $75,000in2021(or Anindividualcangiveupto$75,000(or$150,000combinedfor
SkippingTransferTax $150,000combinedfor spouseswhogiftsplit)toaBeneficiaryinoneyearwithout
Advantages spouseswhogiftsplit) incurringfederalgifttaxorgeneration-skippingtransfer(GST)
taxandwithoutexpendinganyportionofapplicabletransfer
taxexemptions.3More,page13.
TaxDeferral Federal/StateDeferral4 Section529providesfederalincometaxdeferral.New
Hampshiredoesnothaveastateincometax.Earningsonquali-
fieddistributionsareexemptfromNewHampshire’sinterest
anddividendstax.ResidentsofstatesotherthanNew
Hampshirearenotsubjecttothistax.Ifyouorthedesignated
beneficiaryisnotaNewHampshireresident,youmaywant
toconsider,beforeinvesting,whetheryourstateorthe
designatedbeneficiary’shomestateoffersitsresidents
alternatestatetaxadvantagesorotherstatebenefitssuch
asfinancialaid,scholarshipfundsandprotectionfrom
creditors.More,page12.
EstateTax Contributionsarecon- IfaParticipantdies,moneyinthePlanisnotincludableinthe
sideredcompletedgifts Participant’sestate,withoneexception.IftheParticipantelects
forfederalgift,GST, totaketheannualgiftand/orGSTtaxexclusionoverfiveyears,
andestatetaxpurposes. anddiesbeforethefive-yearperiodelapses,thenthecontribu-
tionamountsallocabletothecalendaryearsafterthedateof
deathareincludedintheestateforestatetaxpurposes.5More,
page14.
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PlanRisks Yourinvestmentinthe YourinvestmentintheFidelityAdvisorPlanissubjecttocertain
FidelityAdvisor529 risks.Thoserisksinclude,butarenotlimitedto:
Planissubjecttocertain (cid:129) theriskthatthevalueofyourFidelityAdvisor529Plan
risks. Accountmaydecrease;
(cid:129) theriskthatlaws(bothfederalandstate)affectingyour
accountmaychangeorexpirewhileyouraccountisopen.
More,page58.
(cid:129) theriskthatanychangesmadetotheoriginalstructureor
investmentobjectivesoftheFidelityAdvisor529Planmay
renderitlessfavorabletoinvestors,includinganyincreasein
feesand/orexpenses;and
(cid:129) theriskthatcontributionstoaFidelityAdvisor529Plan
AccountmayadverselyaffecttheParticipant’sorBeneficiary’s
eligibilityforfinancialaidorotherbenefits.More,page60.
Pleaseconsideryourinvestmentobjectives,risktolerance,time
horizon,andotherfactorstodetermineifsavingintheFidelity
AdvisorPlanisappropriateforyou.
Distributions Youmayrequestadis- YoumustspecifythePortfolioorPortfoliosfromwhichthewith-
tributionbyphone, drawalwillbetaken,andtheamountfromeachPortfolio.Ifyou
online,orthePlan’sDis- donotspecifyanyPortfoliosyourrequestwillneedtoberesub-
tributionForm. mittedbeforeanydistributionismade.
IfyourequestdistributionsfromoneormorePortfoliosinwhich
youdonothavesufficientvaluetomakethewithdrawal,wewill
redeemyourentireinterestinthePortfolio(s),butwillnot
increasetheamountwithdrawnfromanyotherPortfolio.This
willresultintheamountofthewithdrawalbeinglessthanthe
amountrequested,andyouwillhavetomakeaseparatewith-
drawalrequestfortheremainder.More,page56.
TaxTreatmentof Qualifieddistributions Distributionsusedforqualifiedhighereducationexpensesare
Qualified arefederalincometax federalincometaxfree.NewHampshiredoesnothaveastate
Distributions6 free. incometax.Earningsonqualifieddistributionsareexemptfrom
NewHampshire’sinterestanddividendstax.Residentsofstates
otherthanNewHampshirearenotsubjecttothistax.More,
page54.
TaxTreatmentof Investmentgainsare ThispenaltytaxistopreventthePlanfrombeingusedasatax
Non-Qualified taxedasordinary shelter.Thefollowingareexceptionstothepenaltytax,butthe
Distributions incometothe earningsportionofnon-qualifieddistributionswouldstillbesub-
Distributee.7Inaddi- jecttoincometaxattheDistributee’staxrateiftheBeneficiary:
tion,someClassAand (cid:129) diesorbecomesdisabled;
CUnitsmaybesubject (cid:129) receivesascholarshiporattendsaU.S.MilitaryAcademy,
toacontingent andthedistributionislessthanorequaltotheamountofthe
deferredsalescharge scholarshiporthecostsofanadvancededucationataU.S.
(CDSC). MilitaryAcademy(asdeterminedbylaw),respectively.More,
page56.
AnnualAccountFee $20 Theaccountfeeiswaived(i)iftheParticipantsignsupforaSys-
tematicInvestmentPlan(includingGovernmentAllotmentsfor
militarypersonnel);(ii)ifthecombinedbalanceofall“Related
Accounts”foraBeneficiaryisequaltoorgreaterthan$25,000-
theterm“RelatedAccount”meansanyAccountthatisestab-
lishedforthesameBeneficiarywithintheTrust;or(iii)atthe
directionofFidelityManagement&ResearchCompanyLLC
(FMRCoLLC).IfyouholdyourAccountthroughafinancialinter-
mediary’sOmnibusAccount,yourAccountmaybesubjectto
analternateannualaccountmaintenancefeeandwaiverprovi-
sions.More,page37.
Expenses Annualestimated ThereareClassAUnits,ClassCUnits,ClassIUnits,ClassD
expensesforeachPort- UnitsandClassPUnits.Thefeesandavailabilityofeach
foliodependupon ClassofUnitsaredescribedindetailintheOfferingStatement.
whichClassorClasses YouselecttheClassofUnitsyouinitiallywanttopurchaseat
ofUnitsispurchased; thetimeyouopentheAccount.Youshouldaskyourfinancial
0.20%annualadminis- representativetoassistyouinchoosingtheClassthatisbestfor
trationfee. you.Theadministrationfeecoversthecostofassetallocation
andtrustadministrationservices,suchasrecordkeeping,state-
ments,andcustomerservice.More,page37.
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Investment Yourmoneywillbe Section529requiresthattheParticipantdoesnothavedirector
Options investedbasedonthe indirectcontrolovertheinvestments.Youmayallocatecontri-
investmentPortfolio(s) butionstooneormoreofthePlan’s27currentPortfolios.The
thatyouchoose. FidelityAdvisor529Plan’sPortfoliosinclude:eightAge-Based
Portfolios,twoStaticAllocationPortfolios,andseventeenIndi-
vidualFundPortfolios.More,page16.
InvestmentExchanges Youmaychangeinvest- Youmayreallocateyourcontributionsandearningsamong
mentoptions,butthere Portfolios(i)twiceeverycalendaryearforagivenBeneficiary
arelimitations. and(ii)anytimeuponachangeinthedesignatedBeneficiary.
YoumayinvestfuturecontributionsinadifferentPortfolio(s)at
anytime.More,page21.
InvestmentRisks Aninvestmentinthe AninvestmentinthePortfoliosissubjecttoriskandfluctuation.
Portfoliosissubject Suchrisksincludebutarenotlimitedtomarketrisk,interest
tomarketriskand raterisk,foreigninvestmentrisk,creditrisk,andgeographical
volatility. concentrationrisk.More,page21.
SchoolAccreditation Foreducationexpenses Accreditedinstitutionsinclude:
tobequalified,the (cid:129) Mostfour-yearcollegesanduniversities,bothforundergrad-
Beneficiarymust(1)be uateandadvanceddegrees;
enrolledataneligible (cid:129) Sometwo-yearinstitutions;
institutionthatmeets (cid:129) Somevocational/technicalschools;
specificfederalaccredi- (cid:129) ForeignschoolsthatareeligiblefortheFederalFamilyEdu-
tationstandardsor cationLoanProgram(FFEL)includingsomeforeignmedical
(2)attendapublic,pri- schools.Visithttp://studentaid.ed.govforadditionalinforma-
vate,orreligiousele- tionorcontacttheDepartmentofEducationat
mentaryorsecondary 1-800-4-FED-AID.More,page61.
educationalinstitution
andusethefundsfor
upto$10,000intuition
expensesperbenefi-
ciaryinataxableyear.
ContactInformation ContactFidelityoryour Online:www.institutional.fidelity.com
financialrepresentative Byphone:[phone]
toaskquestions,setup
RegularMail:
orchangeAccountfea-
TheFidelityAdvisor529Plan
tures,arrangetransac-
FidelityInvestmentsInstitutionalOperationsCompany,Inc.
tionsandrequestforms.
(FIIOC)
P.O.Box770002
Cincinnati,OH45277-0082
OvernightDelivery:
TheFidelityAdvisor529Plan
FidelityInvestmentsInstitutionalOperationsCompany,Inc.
(FIIOC)
100CrosbyParkway,KC1G
Covington,KY41015
1Periodicinvestmentplansdonotguaranteeaprofitorprotectagainstalossinadecliningmarket.
2The“ContributionLimit”willbedeterminedeachSeptemberbytheAdvisoryCommissionbasedontheannualcostof
attending the most expensive school in New Hampshire (including tuition, room and board, and fees) multiplied by
seven. This figure becomes effective the next calendar year (on January 1) and will be compared to a Beneficiary’s
Accountbalanceasoftheendoftheyear(December31).IfthecombinedbalanceofallAccountsforthatBeneficiary
intheTrustisbelowthecontributionlimit,theBeneficiaryiseligibletoreceivefurthercontributionsuptothatamount.
Ifthecombinedbalanceisatorabovethatamount,nofurthercontributionswillbepermittedthatyear.
3Inorderforanacceleratedtransfertoa529Plan(foragivenBeneficiary)of$75,000in2021(or$150,000combinedfor
spouseswhogiftsplit)toresultinnoFederaltransfertaxandnouseofanyportionoftheapplicableFederaltransfer
tax exemption and/or credit amounts, no further annual exclusion gifts and/or generation-skipping transfers to the
same Beneficiary may be made over the five-year period, and the transfer must be reported as a series of five equal
annual transfers on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. If the donor fails to
survive the five-year period, a portion of the transferred amount will be included in the donor’s estate for estate tax
purposes. The accelerated gifting provision does not include transfers from a UGMA/UTMA Account to a UGMA/
UTMA 529 Plan Account. Accelerated gifting may apply for a trust 529 Plan Account. Consult with a tax advisor
regardingyoursituation.
5
4Theportfoliosareheldinatax-advantagedPlanunderIRCSection529,whichisnotintendedtoresultindistributions
of dividends or capital gains which would be taxable under various state laws. However, you should consult your tax
advisorwithrespecttotaxationbystatesotherthanNewHampshire
5Since the accelerated gifting provision does not apply to UGMA/UTMA 529 Plan Accounts, the exception does not
apply to UGMA/UTMA 529 Plan Accounts. Estate tax rules may differ for UGMA/UTMA 529 Plan Accounts. Consult
withataxadvisor.
6Qualified distributions are those used to pay for tuition, fees, room, board, books, computer equipment and
technology,supplies,andequipmentrequiredforthecourseofeducationaswellas“specialneedsservices”needed
by a special needs beneficiary in connection with attending virtually any accredited post-secondary institution
anywhereintheU.S.andateligibleforeigninstitutionsaswellasthoseusedtopayforupto$10,000intuition-related
expensesperbeneficiaryatapublic,private,orreligiouselementaryorsecondaryeducationalinstitutioninataxable
year.
7TheDistributeeisthepersonwhoreceivesthedistributions.TheDistributeemaybetheParticipantortheBeneficiary
under the Plan. The Beneficiary will be deemed the recipient for distributions made to the Beneficiary or an eligible
education institution attended by the Beneficiary. The Participant will be deemed the recipient for all other
distributions.
6
NOTES
7
GLOSSARY OF COMMON FIDELITY ADVISOR 529 PLAN TERMS
529 College Savings Plan - 529 plans are tax-advantaged college savings plans authorized under Section 529 of the Internal
Revenue Code. They also can beused to savefortuitionexpenses atpublic, private,andreligiouselementaryandsecondary
educationalinstitutions.
Age-BasedPortfolios-Age-BasedPortfoliosareinvestmentoptionsdesignedtoaccommodateBeneficiariesbasedonage.
Age-Based Strategy - With an Age-Based Strategy, you will be invested in a Portfolio that corresponds to your Beneficiary’s
birthyear.EachPortfoliobecomesincreasinglymoreconservativeovertimeastheBeneficiaryapproachescollegeage.
Beneficiary-ABeneficiaryistheindividualforwhomtheAccountisestablished.You,theParticipant,cansetupanAccountfor
anyone,includingyourself.TheBeneficiarymustbeanindividual,musthaveaSocialSecuritynumberorTaxID,andmaybeof
anyage.You,theParticipant,aretheonlypersonwhocanchangetheBeneficiary.
ContingentSuccessorParticipant-AContingentSuccessorParticipantisthepersondesignatedbytheParticipanttoassume
ownershipoftheaccountintheeventtheParticipantandSuccessorParticipantdiewhilethereisstillmoneyintheaccount.The
ContingentSuccessorParticipantmustbeaU.S.resident,haveaSocialSecurityNumberorTaxID,andbeatleast18yearsold.
ContributionLimit-TheContributionLimitrestrictstheamountthatcanbecontributedtoallaccountsforagivenBeneficiary
in the New Hampshire Higher Education Savings Plan Trust, which includes the Fidelity Advisor 529 Plan Portfolios and the
UNIQUECollegeInvestingPlanPortfolios.ThecontributionlimitfortheFidelityAdvisor529Planis$542,000.
CustomStrategy-ACustomStrategyprovidestheopportunitytochoosethePortfolio(s)andallocation(s)inwhichtoinvestin
anAccount.
Distributee-TheDistributeeisthepersonwhoissubjecttotaxonawithdrawalfroma529PlanAccount.TheDistributeemay
betheParticipantorBeneficiary.
Eligible Educational Institution - Eligible educational institutions are those schools that meet specific federal accreditation
standards, including eligibility to participate in a federal financial aid program. These institutions include most four-year col-
legesanduniversities(bothforundergraduateandadvanceddegrees),sometwo-yearinstitutions,someproprietaryandvoca-
tional schools, and foreign schools that are eligible for the Federal Family Education Loan Program (FFEL), including some
foreignmedicalschools.
ExpenseRatio - TheExpense Ratiois theratioofexpenses to averagenetassets forafundorPortfolioforagivenperiodof
time.
Individual Fund Portfolios - Individual Fund Portfolios are investment options designed to invest in a single mutualfund and
accommodateBeneficiarieswithoutregardtoage.
Non-QualifiedWithdrawal-ANon-QualifiedWithdrawalismoneydistributedfroma529PlanAccountandnotusedforquali-
fiedhighereducationexpenses.TheinvestmentgainsportionofthesewithdrawalswillbetreatedasincometotheDistributee
andtaxedattheDistributee’staxrate.Inaddition,afederalpenaltytaxof10%mayapplytotheinvestmentgainsportionofthe
non-qualifiedwithdrawal.
OfferingStatement-TheOfferingStatementisthedocumentthatprovidesinvestorswithcomprehensiveinformationontheFidel-
ityAdvisor529Plan’sfeatures,benefits,risks,feesandexpenses,andperformanceaswellaspertinentlegalandtaxdisclosures.
Participant-TheParticipantisthepersonestablishingtheAccount.TheParticipantmustbeaU.S.resident,haveaSocialSecu-
rity number or Tax ID, and be at least 18 years old at the time an Account is opened and when a contribution is made to an
Account.Each529PlanAccountcanhaveonlyoneParticipant.
ParticipationAgreement-TheParticipationAgreementisabindinglegalagreementexecutedbyyou,theStateSponsor,and
theProgramManager.
Program Manager - The Program Manager enters into contracts with a state to provide administrativeand managementser-
vices to a 529 Plan sponsored by a specific state or state agency. Fidelity Investments administers and manages the Fidelity
Advisor529Plan.
QualifiedHigherEducationExpenses-QualifiedHigherEducationExpensesaredefinedinSection529oftheInternalReve-
nueCode andinclude(1) most highereducationexpenses atanEligibleEducationalInstitution, (2) fees, books, supplies,and
required equipment associated with enrollment in an apprenticeship program registered and certified with the Secretary of
LaborunderSection1oftheNationalApprenticeshipAct,(3)uptoanaggregateamountof$10,000percalendaryear(fromall
accounts established for the same beneficiary) in tuition expenses at public, private, and religious elementary and secondary
educational institutions, and (4) the principal or interest on any qualified education loan (as defined in section 221(d) of the
Code)ofa529plandesignatedbeneficiaryorasiblingofthedesignatedbeneficiarysubjecttoalifetimelimit(fromallaccounts
establishedforthesamebeneficiary)of$10,000perindividual.Distributionsfroma529planaccountthatareusedtopayQuali-
fiedHigherEducationExpensesarenotgenerallysubjecttofederalincometax.
8
QualifiedWithdrawals-AQualifiedWithdrawalisadistributionfroma529planaccountthatisusedforQualifiedHigherEdu-
cation Expenses, which include most higher education expenses at an Eligible Educational Institution and up to $10,000 per
beneficiary in tuition expenses at public, private, and religious elementary and secondary educational institutions in a taxable
year.
Rollover-ARolloverallowsaParticipanttotransferthevalueofa(1)CoverdellEducationSavingsAccount(CoverdellESA),a
qualifiedU.S.savingsbond,ora529planaccountintoa529planaccount,or(2)a529accounttoanABLEaccount(subjectto
certainrestrictions)withoutsubjectingtherolloveramounttofederalincometaxwhencertainconditionsaremet.
Section529-Section529oftheInternalRevenueCode(26U.S.C.529)definesthespecificrequirementsfor“qualifiedtuition
programs”,including529collegesavingsplans.
StateSponsor-TheStateSponsoristhestatethatestablishesandmaintainsthe529CollegeSavingsPlan.TheStateofNew
HampshireestablishedandmaintainstheFidelityAdvisor529Plan.
StaticPortfolios-StaticPortfoliosareinvestmentoptionsdesignedtoaccommodateBeneficiarieswithoutregardtoage.
Successor Participant - A Successor Participant is the person designated by the Participant to assume ownership of the
AccountintheeventtheParticipantdieswhilethereisstillmoneyintheAccount.TheSuccessorParticipantmustbeaU.S.resi-
dent,haveaSocialSecuritynumberorTaxID,andbeatleast18yearsold.
Trust - The Trust is the New Hampshire Higher Education Savings Plan Trust, which was established by the State of New
HampshiretoholdassetsoftheFidelityAdvisor529PlanandtheUNIQUECollegeInvestingPlan.
Trustee-TheTrusteeistheTreasurerofNewHampshire,whoissupervisedbytheAdvisoryCommission.
UGMA/UTMA529Account-AUGMA/UTMA529accountisa529planaccountestablishedbyaUGMA/UTMAcustodian.All
assetsheldinaUGMA/UTMA529accountbelongtotheminor(Beneficiary)andallsuchassetsmayonlybeusedforthebene-
fitoftheminor.TheapplicablestateUGMA/UTMAstatutewillgoverntheaccount.
Unit-UnitsofthePortfoliosarepurchasedbyParticipants.TheUnitsaremunicipalsecurities,andtheirsaleisregulatedbythe
MunicipalSecuritiesRulemakingBoard.
9
TABLE OF CONTENTS
SETTINGUPANDCONTRIBUTINGTOANACCOUNT
HowtoOpenanAccount
FEATURESTONOTE
WhoCanBeaParticipant
HowtoContributetoanAccount Taxandotherrulesapplydifferentlyto
ContributingWithaSystematicInvestmentPlan 12 a 529 account that is also a Uniform
MakingaTransferorRollover Gifts/Transfers to Minors Act (UGMA/
UTMA) Account. If you have one of
DecidingHowMuchtoContribute 13
these types of accounts, be sure to
MinimumandMaximumContributionLimits
read the information in the “UGMA/
Gift,Estate,andStateTaxConsiderations UTMA Points” boxes that appear
CreditorProtection 14 throughoutthisdocument.
ContactingFidelityInvestments 15
MANAGINGANDMODIFYINGANACCOUNT
InvestmentOptions 16
PortfolioAssetAllocations
ChoosingYourInvestments 20
ChangingYourInvestmentStrategyorAllocation 21
UnderstandingPortfolioStrategiesandRisks 21
ChangingtheBeneficiaryonanAccount 22
WhoQualifiesasaFamilyMember
ChangingtheParticipant 23
WhoCanbeaSuccessorParticipant
PORTFOLIOPERFORMANCE,FEES,EXPENSES,ANDSALESCHARGES
PortfolioPerformanceandExpenseRatios 27 Trustaccountsmayalsobesubjectto
slightly different rules. Consult with a
UnderlyingMutualFundExpenseRatios 36
trustprofessionalforanyFidelityAdvi-
AccountandPortfolioFeesandExpenses 37
sor529PlanAccountswherethePar-
AvailabilityofUnits 37 ticipant(accountholder)isatrust.
LoadWaivers,CombinedPurchases,RightsofAccumulation,LetterofIntent,
ReinstatementPrivilege,andContingentDeferredSalesCharges
PlanFeeandExpenseInformation 41
HypotheticalInvestmentCostCharts 48
SaleofUnits 53
MAKINGWITHDRAWALSANDCLOSINGANACCOUNT
DeterminingtheTaxStatusofaWithdrawal 54
SchoolAccreditation 54
Whatisa“QualifiedWithdrawal”
WithdrawalsthatareTaxable 55
1099QReporting
RequestingaWithdrawal 56
ClosinganAccount 57
FrequentlyAskedQuestions 58
TAXCREDITANDFINANCIALAIDCONSIDERATIONS
HopeScholarship
LifetimeLearningCredit
FederalFinancialAid
ADDITIONALINFORMATION
FidelityAdvisor529Plan’sLegalandBusinessStructure 62
TheUnderlyingMutualFunds 64
AssetAllocationofPortfolios
InvestmentRisksoftheUnderlyingFunds
PARTICIPATIONAGREEMENT 74
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