#237 Financial Planning Strategies


One of the questions we get a lot from parents and grandparents is – How can we help out and pay for college? This is normally one of the biggest expenses parents have for their children. One of the strategies you might take is contributing money to a 529 Plan. You can contribute up to $5,000.00 for single and $10,000.00 for joint a year. This is a very flexible strategy in which you might be able to take a tax advantage down the road when you need to use the money for things such as room and board, books, and many other things. Contributions will need to be made by year end on December 31st and when you are ready to make withdrawals you can contact the plan. One important thing to keep in mind is that you should keep all of your receipts.


September will be here before we know it which will mark the last third of the year. A lot of times we have people coming in that are not maximizing their 401(k) contributions. It is really difficult to do that the longer you go into the calendar year. Take the last third of the year, understand how much you are contributing to your 401(k), and determine if you need to make adjustments to maximize your contributions. The limits on contributions is $18,000.00 for those under age 50 and $24,000.00 for those 50 and older.


If you turn 70 ½ this year, meaning your birthday was before June 30th or you are over 70 ½, you will be required to take a required minimum distribution (RMD) from your pre-tax qualified retirement accounts, such as a traditional IRA. Keep in mind that if you decide not to take your RMD under these circumstances, there could be a 50% penalty.

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

Jon Roberts, CFP®, MBA
Senior Vice President
Wealth Consultant
Email Jon Roberts here

Aimee Barnes, CLU®, ChFC®
Vice President
Wealth Consultant
Email Aimee Barnes 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.
The information presented was abbreviated and may not contain all the risks, considerations, or limitations, please contact us for more information.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential 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 benefits that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing. Non-qualified withdrawals may result in federal income tax and a 10% federal tax penalty on earnings.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

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