The Financial Guys, located in Buffalo, New York can help your family reach its goals for college savings. The 529 college savings plan is one of the easiest ways to accomplish those goals and it’s packed with several features and benefits that will have you on the road to savings in no time. 529 plans are often operated by individual states and due to this, regulations and options will vary by state.
Who can benefit from a 529 college savings plan?
When you open a 529 savings account for college, you can open it for anyone you want to. That’s right, the account doesn’t even need to be for your own children. The account can be set up for grandchildren, nieces, nephews or even the child of a friend. What’s more is that if you’re planning a career change or you know that you’re going to be attending college sometime in the future, you can even set up a 529 plan for yourself! You don’t have to be a minor to benefit from a 529 savings account and that’s a great option if you want to go to college or go back to college and you don’t want the burden of taking on debt from student loans.
When is the best time to open a 529?
The sooner you open a 529 account for college, the sooner you can start saving. The natural answer would be as early on in life as you can for your kids or whoever the beneficiary is going to be. If you’re interested in setting up a 529 plan for yourself, you should start saving as soon as you realize that you’re going to have the need to pay for college. The Financial Guys will help you determine when you need to start saving in order to reach the college fund level that you want to reach.
What are the tax benefits of a 529 college savings plan?
Contributions and the earnings that are accumulated in the 529 account can be withdrawn tax free as long as they’re used towards allowable higher education expenses. State taxes and tax benefits will vary depending on the state that you live in.
Who controls the money in the 529 account?
You control the money in the 529 account even after the beneficiary of the account turns a legal age. This gives you the peace of mind of knowing that the money will be spent the way that you intended.
Are there contribution minimums or limits?
The minimum amount to start up a 529 is going to vary by state but the minimums are usually very low and affordable. The income limitations are also very generous, with some states allowing up to $300,000 per beneficiary. Since the minimum to open a 529 and the income limitations vary by state, The Financial Guys can help further assist you depending on your current situation.
The 529 college savings plan is simple, efficient and one of the most flexible ways to save for higher education. Whether you’re saving for your children, another family member or even for yourself, give The Financial Guys a call to start saving today.