529 Plans

It’s no secret that in our country college education tends to be pretty expensive. According to Strategas, the average in-state college tuition costs around $20,000 a year and private colleges can cost up to $45,000 a year. One of the ways to start saving for these expenses is a 529 plan. A benefit of one of these plans is that earnings grow tax deferred. Also, withdrawals can be tax free if they are qualified. Please note that non-qualified withdrawals may result in federal income tax and a 10% federal tax penalty on earnings. Qualified withdrawals can consist of tuition, room and board, computers and other technology. Another benefit of these plans is that you can start them at any time. It’s important to keep in mind that starting the plan earlier gives you a better opportunity to compound growth.

 

Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here

 

Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No strategy can ensure success or protect against a loss.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. Investing involves risk including loss of principal. Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

Investing involves risk including loss of principal. Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

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