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 $16,000 per recipient or $32,000 for married couples in 2022.

  • 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 $80,000 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.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

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