Q. I am clueless about 529 plans. My mom wants to open one up for her great-granddaughter who is 15 months old. I understand you can open a plan in another state and not just the state where you live. Does that mean the beneficiary of that plan has to attend college in that state? Also, is it true the 529 plan can be used for grade school education? A. Your mom is smart to be considering a 529 plan account for her great-granddaughter. These plans are among the most generous, flexible, and tax-beneficial options for education savings. A 529 plan, technically known as a "qualified tuition program" under Section 529 of the Internal Revenue Code, is an education savings plan that provides major tax advantages, said Gene McGovern of McGovern Financial Advisors in Westfield. He said the plans are generally established by individual states, and they come in two different versions. One version -- the prepaid tuition plan -- allows you to purchase college credits now at today's … [Read more...] about Clueless about 529 plans? Here’s a guide
Can 529 be used for graduate school
WASHINGTON — In the fall, my husband and I will have three children in universities: one in her second year of graduate school, one a junior in college, and the other a first-semester freshman.When they are finished, not one of our children will graduate with any debt. None. Nada.How did we do it without hitting the lottery or the scholarship jackpot?We started saving when our kids were wee little people, the last two before they could walk or talk. and the vehicle we used to save was a 529 plan.Under a 529, if the money is used for qualified educational expenses, the earnings are not taxed.But despite the fact that this tax-advantaged savings plan has been around for 22 years, a recent survey by the financial services firm Edward Jones found that 71 percent of Americans couldn’t correctly identify a 529 as a way to save for education expenses.This is disturbing. The average published charges for in-state college tuition, room and board was $20,770 for the 2017-2018 … [Read more...] about Top excuses people use for not investing in a 529 college-savings plan
Q: My children are now through with college, and we still have some money in their 529 college-savings plans. Can that money remain in those accounts and be used to fund their children’s college someday? If so, what steps need to be taken to do that? And what happens if I withdraw the money and use it for things other than education?A: You can’t name children yet to be born as 529 beneficiaries, but you can name other eligible family members as beneficiaries. Or you can keep your kids as the beneficiaries and eventually make the switch after your grandchildren are born.There’s no time limit for making the change or for using the money in the account, said Brian Boswell, president of 529Expert.com. Eventually, you will be able to use the money in the 529 for your grandchildren’s college expenses (tuition and fees, room and board, books and a computer).Plus, the new tax law also lets you withdraw up to $10,000 each year per beneficiary to pay tuition for … [Read more...] about What should I do with leftover money in 529 plans?
Share This Story! Let friends in your social network know what you are reading about Facebook Email Twitter Google+ LinkedIn Pinterest Wiles: Misconceptions about versatile 529 college plans may be harming participation Few tax-advantaged savings plans are as versatile as 529 programs for college. But growth has slowed, with misconceptions a possible problem. Here are some of the advantages the program offers over other savings options. Sent! A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. Join the Nation's Conversation To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Russ Wiles, The Republic | azcentral.com Published 7:00 a.m. ET April 5, 2018 CLOSE Do parents' save more money for their son's college than for their daughter's? Tony Spitz has the details. Buzz60 CONNECT TWEET LINKEDIN COMMENT EMAIL MORE It might … [Read more...] about Wiles: Misconceptions about versatile 529 college plans may be harming participation
Share This Story! Let friends in your social network know what you are reading about Facebook Email Twitter Google+ LinkedIn Pinterest Are you saving for your kids' college expenses? Consider this option Few tax-advantaged savings plans are as versatile as 529 programs for college. But growth has slowed, with misconceptions a possible problem. Sent! A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. Join the Conversation To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Subscribe Today Log In Subscribed, but don't have a login? Register your digital access. Russ Wiles, The Republic | azcentral.com Published 6:00 a.m. MT April 1, 2018 CLOSE 529 plans help parents save for college tuition expenses for their kids, but with college costs on the rise, the account may not be enough. 529 Plans came into the spotlight recently after … [Read more...] about Are you saving for your kids’ college expenses? Consider this option