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Schwab 529College SavingsPlanA 529 College Savings PlanIn this newsletter you’ll find important informationabout changes coming soon to your account.Effective July 14, 2017, the Schwab 529 College SavingsPlan will implement some exciting changes. These changesinclude an extended glide path and new names for the agebased portfolio options.These changes will be automatic; you do not need to take anyaction and it will not count against the twice-per-calendar-yearinvestment exchanges allowed by the Internal Revenue Service.More detailed information on the investment options; includingupdated allocations, fees and performance charts will beupdated in The Guide and Participation Agreement availableon July 14, 2017. To request an updated Guide, call us at1-888-903-3863 or visit schwab.com/529.If you are currently invested within a staticportfolio your account will not be affected bythe enhancements to the age-based portfoliosoutlined within this newsletter.LQ-FLY-92350-LQ Glide Path Schwab 529 Newsletter-Final.indd 15/5/17 2:58 PM

Summary of ChangesYou’ll see two main changes coming soon to the Age-Based Tracks:An Expanded Glide PathOur age-based tracks gradually move your investments from equity-focused holdings to more bond-focused holdings. Traditionally,equity holdings offer the potential for greater returns, but also greater risk potential. Alternatively, bonds traditionally offer lower returnpotential, but also lower risk. To make your progression along the age-based track more gradual, we are adding more portfolios withinthe tracks. We are also expanding the glide path from four to seven steps as the beneficiary approaches college age.These changes apply to both active and index age-based tracks.New Names to Reflect Stock InvestmentsWe’ve simplified the names of the age-based portfolios to reflect their equity allocations.Expanded Glide PathThe following table shows the risk tracks and the progression, including the new steps, of the portfolios within each of the age brackets.Age-Based TracksAge of Child4 years old or younger5-7 years8-10 years11-13 years14-15 years16-17 years18-19 years20 yearsAggressive TrackModerately Aggressive TrackModerate TrackModerately Conservative Track95% Equity Portfolio80% Equity Portfolio60% Equity Portfolio40% Equity Portfolioââââ80% Equity Portfolio70% Equity Portfolio60% Equity Portfolio40% Equity Portfolioââââ70% Equity Portfolio60% Equity Portfolio50% Equity Portfolio40% Equity Portfolioââââ60% Equity Portfolio50% Equity Portfolio40% Equity Portfolio30% Equity Portfolioââââ50% Equity Portfolio40% Equity Portfolio30% Equity Portfolio20% Equity Portfolioââââ40% Equity Portfolio30% Equity Portfolio20% Equity Portfolio10% Equity Portfolioââââ30% Equity Portfolio20% Equity Portfolio10% Equity PortfolioShort-Term Portfolioââââ20% Equity Portfolio10% Equity PortfolioShort-Term PortfolioShort-Term Portfolio2LQ-FLY-92350-LQ Glide Path Schwab 529 Newsletter-Final.indd 25/5/17 2:58 PM

What These Changes Mean to YouFor age-based tracks, to determine your new portfolio, see the chart below. Specifically, if you are currently invested in any age-basedtrack, your investments will transition to a new portfolio, depending on your current risk track and the beneficiary’s age as of June 30,2017. This transition may result in a change to your equity, bond and cash allocations.Schwab 529 and Schwab 529 IndexAge-Based Risk TrackCurrent PortfolioModerately t-Term**Age of BeneficiaryNew PortfolioActive Portfolio’s Expense Ratio %*0-1040% Equity0.77%11-1330% Equity0.71%1420% Equity0.64%1520% Equity0.64%16-1710% Equity0.57%Short-Term0.49%60% Equity0.87%50% Equity0.82%40% Equity0.77%30% Equity0.71%0.64%18-1920 0-4Moderate5-789-10ModerateModerately ely Aggressive1516-1720% Equity18-1910% Equity0.57%20 Short-Term0.49%0-480% Equity0.95%5-770% Equity0.91%8-1060% Equity0.87%50% Equity0.82%40% iveShort-Term**Aggressive12-13141516-1730% Equity0.71%18-1920% Equity0.64%20 10% Equity0.57%0-495% Equity1.01%5-780% Equity0.95%70% Equity0.91%60% Equity0.87%50% Equity0.82%0.77%8Moderately AggressiveAggressiveModerateModerately ConservativeShort-Term**9-101112-13141516-1740% Equity18-1930% Equity0.71%20 20% Equity0.64%*Index expense ratios will remain at 0.30%.**Please see updated Guide for additional details.This change does not affect Static Portfolios.**Important Note: All age-based accounts with beneficiaries who have turned 18 by June 30, 2017 will be grandfathered fromthese changes. On July 14, 2017, these accounts will be moved to the Static Short-Term Portfolio where they will remain unless theaccount owner changes the investment direction. Fees of existing portfolios have not changed. However, if your account is moving toa portfolio with greater or lesser equity exposure, the total expense ratio could be higher or lower. (Does not apply to index portfolios)3LQ-FLY-92350-LQ Glide Path Schwab 529 Newsletter-Final.indd 35/5/17 2:58 PM

New Portfolio Names to Reflect Stock InvestmentsTo simplify the naming structure, we’ve updated the names of the portfolios used in the age-based tracks to reflect their equity allocations.You will not see changes if you are invested in the static portfolios.The pie charts below illustrate the allocations for each portfolio used in the age-based tracks.95% Equity Portfolio80% Equity Portfolio70% Equity Portfolio60% Equity Portfolio50% Equity PortfolioDomestic Stocks 70%Domestic Stocks 60%Domestic Stocks 52.5%Domestic Stocks 45%Domestic Stocks 37.5%International Stocks 25%International Stocks 20%International Stocks 17.5%International Stocks 15%International Stocks 12.5%Bond 0%Bond 15%Bond 25%Bond 35%Bond 42.5%Money Market 5%Money Market 5%Money Market 5%Money Market 5%Money Market 7.5%DomesticInternationalBondMoney Market40% Equity Portfolio30% Equity Portfolio20% Equity Portfolio10% Equity PortfolioShort-Term PortfolioDomestic Stocks 30%Domestic Stocks 22.5%Domestic Stocks 15%Domestic Stocks 7.5%Domestic Stocks 0%International Stocks 10%International Stocks 7.5%International Stocks 5%International Stocks 2.5%International Stocks 0%Bond 50%Bond 50%Bond 50%Bond 45%Bond 40%Money Market 10%Money Market 20%Money Market 30%Money Market 45%Money Market 60%DomesticInternationalBondMoney Market4LQ-FLY-92350-LQ Glide Path Schwab 529 Newsletter-Final.indd 45/5/17 2:58 PM

Important Dates and RemindersIf applicable, after the close of business on July 13, 2017, your balances will automatically transition to the new investment option(s) asdescribed, and as highlighted in the previous tables. Additionally, your contribution allocations will be updated and future contributionswill be invested according to the new allocations. You are able to change the allocation instructions for new contributions at any timewith no annual restrictions.While we implement these changes, you will not be able to initiate or request any transactions, including withdrawals or investmentoption changes, nor will you be able to initiate or request other changes to your account between 4:00 pm, Eastern Time ThursdayJuly 13, 2017 and 8:00 am, Eastern Time Monday July 17, 2017 online. However, you will be able to transact by phone up to4:00 pm, Eastern Time Friday July 14, 2017. Theses transactions will be processed on Monday July 17 with net asset value of FridayJuly 14, 2017. Should you wish to adjust your account before or after this period, you may do so as part of your two annual changesallowed by the IRS.Key DatesActionJuly 13, 2017Transaction and other account-change requests are processed as usual until 4:00 pm, Eastern Time. Requestsreceived between 4:00 pm, Eastern Time on July 13, 2017 and 4:00 pm, Eastern Time on July 14, 2017 will beprocessed on July 17, 2017, using portfolio net asset values as of July 14, 2017.July 14, 2017Account assets are transferred from existing portfolios to new portfolios, as outlined in the Glide Path table above.July 14, 2017Recurring contributions (automatic investments) scheduled for July 14, 2017 and transactions or other accountchange requests received by mail after 4:00 pm, Eastern Time on July 13, 2017 will be processed on July 17, 2017with a net asset value as of July 14, 2017.July 17, 2017Schwab.com/529 will be updated to reflect the changes. A new Guide and Participation Agreement will beavailable by visiting schwab.com/529 or by calling Schwab at 1-888-903-3863.July 17, 2017All transactions will be reflected on the quarterly statement, but confirmations will only be sent to shareholderswho had changes to their portfolio allocations. If you only experienced a name change to your portfolio, you willnot receive a confirmation. You may log into your account at schwab.com/529 or by calling 1-888-903-3863on or after July 17, 2017 to review in detail.We’re Here to HelpPlease review your account and ensure it aligns with your college savings goals and risk tolerance. If youhave questions on these changes or would like to discuss options, please call Schwab at 1-888-903-3863.5LQ-FLY-92350-LQ Glide Path Schwab 529 Newsletter-Final.indd 55/5/17 2:58 PM

Underlying Portfolio HoldingsUnderlying Holdings of the Actively Managed Age-Based PortfoliosAs of July 14, American Century Growth .50%American Century Equity Growth .00%JPMorgan Disciplined Equity .00%0.00%American Beacon Large Cap Value merican Century Value %0.00%American Century Small Company 0%0.00%Domestic Stock 00%7.50%0.00%American Century International Growth .00%Laudus International MarketMasters Fund Schwab Fundamental International LargeCompany Index .00%International Stock %2.50%0.00%Baird Core Plus Bond 7.75%16.00%Metropolitan West Total Return Bond 7.75%16.00%American Century Short Duration InflationProtection Bond .00%American Century International Bond .00%Bond 0%45.00%40.00%Schwab Retirement Government Money Fund 0.00%Money Market %100%10%EquityShortTermUnderlying Holdings of the Index Age-Based Portfolios2As of July 14, 40%Equity30%Equity20%EquitySchwab S&P 500 Index 0%7.50%0.00%Schwab Small Cap Index Fund .00%Domestic Stock 00%7.50%0.00%Schwab International Index Fund %0.00%International Stock %2.50%0.00%Vanguard Total Bond Market Index %40.00%36.00%Schwab Treasury Inflation ProtectedSecurities Index .00%Bond1 %45.00%40.00%Schwab Retirement Government Money Fund 0.00%Money Market %100%The value of portfolios that utilize bonds will be susceptible to loss of principal with increases in interest rates.As index funds, the funds seek to track the performance of their comparative index but may at times diverge from index returns.Mutual funds are sold through prospectus only. No offer is being made of any of the funds discussed in this Guide or pursuant to this Plan.American Beacon Funds are distributed by Foreside Fund Services, LLC. American Century funds are distributed by American Century Investment Services, Inc. BairdFunds are distributed by Robert W. Baird & Co., Inc. Metropolitan West Funds are distributed by Foreside Distributors, Inc. Schwab Funds and the Laudus MarketMastersFunds are distributed by Charles Schwab & Co., Inc. Vanguard funds are distributed by Vanguard Marketing Corporation. J.P. Morgan Funds are distributed by JPMorganDistribution Services, Inc126LQ-FLY-92350-LQ Glide Path Schwab 529 Newsletter-Final.indd 65/5/17 2:59 PM