What are you doing on May 29? With a nod to 529 college savings plans, Edward Jones is marking May 29 as “Save for Education Day” – a reminder to get serious about achieving your education savings goals.
Whether a private or public school is in your child’s or grandchild’s future, education costs are rising – in fact, even outpacing inflation. By opening a 529 plan today and then contributing consistently, you can build a college fund to help cover these costs. The following illustrates how waiting even three years can impact your goal.
A 529 plan offers:
There are tax and withdrawal considerations with 529 plans, so be sure to discuss these with your financial advisor.
Withdrawals used for expenses other than qualified education expenditures may be subject to federal and state taxes, plus a 10% penalty on the earnings. Contributions may be eligible for a state tax deduction or credit in certain states for residents who participate in their own state’s plan. 529 college savings plans may reduce a beneficiary’s ability to qualify for financial aid. Please consult with your tax advisor regarding the tax implications of 529 college savings plans.
To help families set money aside tax free for future college costs, the IRS created state-sponsored 529 plans.Read more
Answering this question can help you create a realistic savings goal – but the answer depends on when and where your child goes to college.Read more