529 Plans

529 Plans For Your Future

     As your family gets larger with children, grandchildren, foster children, nieces nephews or family friends, we provide a tax advantage growth tool to save for education.  These individuals may not remember the birthday or Christmas gift you gave them from 10 years ago but they will remember if they graduate college or complete their higher education debt free!

     With a 529 plan, you’re not just saving for education, you are saving for their future success. Providing your growing family with the ability to think critically and obtain the tools necessary for future careers lays the foundation for financial success.  A 529 plan grows based on the investments and then when utilized for qualified educational purposes is tax free!  So, what is a qualified educational expense for a 529 plan?

• Tuition and Fees: Accredited college or university through the U.S. Department of Education’s student aid program, K-12 grade school depending on your state, or a registered apprenticeship program.
  Books, Supplies and Equipment: Only for college courses that require the item or equipment including tools for apprenticeship programs.
  Room and Board: Only for college courses and is limited to the greater of 1) the actual charge for residence in school-operated housing or 2) the annual “financial aid cost of attendance” room and board amount for that school.
  Computers (hardware and software) and internet access: College courses only.

What does NOT qualify as an education expense?

• Transportation and Travel Costs
  Health Insurance
  Extracurricular Activity Fees
  Application and Testing Fees
             

        Even if your designated beneficiary of the 529 plan decides not to pursue higher education, you can now in some cases utilize this account to fund a Roth IRA in their name if they have earned income. You can also freely change the account beneficiary between family members. This account allows a family to build generational wealth and sets up our children’s future. 

The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient's marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.