529 INFO
When I first encountered students who couldn't afford the colleges to which they were accepted the first thing I asked, "Do your parents have a 529?" I was surprised to discover that so few of my students or their parents even knew what I was talking about.
If you are here that means you already know a little about 529 and college savings. But last year Edward Jones announced that 72% of Americans had never heard of a 529. Business Insider did a great job of explaining the advantages of a 529. With the new Tax Laws, even more students and families can take advantage of the 529.
Starting a 529
The Benefits
There are a number of benefits of using a 529 College Saving Plan to prepare for your child's future.
Best Parts
- Automatic payments from a checking account
- Investment grows over time
- Growth of investment is tax-free
- Contributions are deductible on state taxes
- All qualified education expenses are covered
- Minimal impact on financial aid calculation
- Will soon be available for K-12 Private School tuition
Starting a 529
Keep in Mind
529 plans are an easy and smart way to save for your child's future but there are a few items to remember.
Limitations
- Must use the money for education
- 10% penalty for non-education withdrawls
- 529 have limited portfolio options