Do you ever wonder how much college will cost when your child or grandchild is ready to go? Are you overwhelmed by thinking of ways to help pay for their education? May 29th is National 529 Day, reminding us all about the great ways you can start to save for college with a 529 Account.
What is a 529 Plan? It is an account that is set up for one beneficiary’s educational expenses. The funds can be used for college tuition and expenses—and can also be used for early education, grades K-12, Community and Technical College, and even Vocational school. Please click the following link for more detailed information on 529 Plans: https://docs.rbcwealthmanagement.com/us/2919-section-529-education-savings-plans.pdf
There are many tax advantages to starting a 529 plan early. The funds grow tax free, and withdrawals are also tax free when used to pay for education related expenses. Contributions to these accounts may also have some tax advantages depending on your state. This can be a family affair with parents, grandparents, other family members and even friends who can contribute to a 529 account once it has been set up. There is no minimum contribution amount so a little can go a long way.
I know firsthand about these plans—my son is now a sophomore in college, and we are using his 529 account for his tuition. My daughter has her own 529 for when she goes to college. You can change the beneficiary if the funds are not needed—and even some can be converted into a Roth for the beneficiary. Discussion with your Advisor is important to determine if a 529 is a good choice for your student.
To find out more about how to start a 529 account, please visit our website at the following link: https://us.rbcwealthmanagement.com/krausethorpewealthmanagementteam/college-savings-plans or feel free to reach out to me directly to discuss your particular situation.