couple with tween daughter riding bikes down a path in woods

529 College Savings

I think you will agree that a college education is among the most important milestones in our children’s future. Did you know that 529 college savings plans offer unique benefits to parents and grandparents who want to save for their children’s college education regardless of the child’s age?

Fletcher       Lucy       Lily      

 

That’s why I’ve started a 529 plan for each of my grandkids. These are 2016 pictures.

529 college savings plans offer these features and more:

  • Control of withdrawals by the Plan’s owner-when and how much
  • Owner can change the Beneficiary anytime to other members of the family **
  • Tax-free*(Federal) withdrawals for qualified expenses-tuition, room & board, fee, supplies, computers, etc.
  • Use of the money at any accredited college, university or trade school of about 7,000 in the United States and many overseas.

*   state tax treatment will be dependent on state of residence
** subject to certain restrictions

I’d like to help you establish an appropriate savings strategy.
Call me at (941) 750-6818 today.

 

Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, so long as you use withdrawals for eligible college expenses, such as tuition and room and board. However, if you withdraw money from a 529 plan and do not use it on an eligible college expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings.

Before investing you should consider whether your resident state offers state tax or other benefits only available when investing in your state’s 529 plan. Plans offered by other states may not provide these same tax benefits. Changes in tax laws or regulations may occur at any time and could substantially impact your situation. You should discuss any tax or legal matters with the appropriate professional.