It’s never too soon to start planning for your child’s education. Begin saving for their journey toward higher education by taking advantage of a 529 Plan–an investment plan operated by a state, designed to help families save for educational costs.
A key perk of a 529 Plan is the income tax breaks on non-deductible contributions. Any earnings grow tax-deferred for as long as the money stays in the plan. Any withdrawals for qualified educational expenses are federal tax-free.
As long as the plan satisfies a few basic requirements, the federal tax law provides special tax benefits to the plan participant. There also may be state tax deduction benefits depending on your state’s plan.
A 529 Plan has a broad range of tax benefits and consequences, financial aid implications, contribution limits, and asset flexibility. Our CERTIFIED FINANCIAL PLANNER™ professionals know the questions to ask to determine the best fit for your needs.