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National 529 Day is May 29 (5/29)!

May 27, 2021

Let's take this moment to highlight the importance of 529 savings plans to help you plan and pay for college or training expenses.

529 Plan

Many parents today suffer from sticker shock when they learn what it costs to send their children to college. While the cost of college can be a hard pill to swallow, it’s never too early to get familiar with a 529 college savings plan. Here’s what you need to know:

  • Also known as a “qualified tuition program,” a 529 plan allows you to save for higher education expenses for a designated beneficiary.

  • 529 funds can be also used for K-12 private school tuition.

  • Anyone—whether they’re a family member or friend—can establish a 529 plan for a beneficiary.

  • A 529 plan is provided by a state, an agency of the state, or by an educational institution itself.

  • Money invested in the plan accumulates on a tax-deferred basis. Distributions used for higher education expenses are tax and penalty-free as long as the funds are used for approved education expenses. 

If you’re interested in starting a 529 college savings plan for your children or grandchildren, call today to discuss savings and investment strategies, and to review the appropriate eligibility requirements.

When you’re ready to start saving for your children's education, contact the office so we can discuss.

Planning for College

We are excited to offer custom college planning strategies using College Aid Pro™ for our financial planning clients. Our comprehensive process can help families through the college application and funding journey by identifying the critical things you need to know before entering the college funding maze. Areas where we can help include:

  1. Net-cost comparison of 2,400+ schools

  2. Identify need-based and merit-based aid opportunities

  3. Scenario modeling of selected majors and anticipated earning projections

For more information, call us today to schedule a time to review your financial and educational planning needs. 

Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer’s official statement and should be read carefully before investing.

Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state's 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investing in any state's 529 Plan.

A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.