Why Choose a 529 Plan for College Savings

Today’s tip will cover “Why choose a 529 plan for college savings?”

A 529 Plan is a college savings account that is exempt from federal taxes.  These types of plans were introduced in 1996 to help taxpayers save for college expenses for a designated beneficiary.

A few things to consider when investing in a 529 college plan: 1) 529s are tax deferred investments 2) your money is portable – meaning you can transfer from family member to family member, so if one child decides not to attend college, the money can be used towards another child’s tuition 3) you can set up automatic investment options which allow you to withdraw money each month from your checking and contribute a specified amount each month if you choose this option.

There are several other factors to consider if this is the best way for you to save for college. Feel free to contact me to see if a 529 Plan is right for you and your family.

Join us each week for the Savvy Minute.  You can find more videos like this at SavvyUp.tv.  That’s SavvyUp.tv Or give us a call at 760-692-5700, that’s 760-692-5700 and set up your free 30-minute financial assessment today. And remember to Savvy Up!!

For tax advice contact your trusted tax professional. You can also learn more about 529 plans by visiting the IRS website at IRS.gov or clicking on the following link http://bit.ly/2DCuilP .

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER TM in Carlsbad California. If you would like to set up a time to discuss your financial goals she can be reached at 760-692-5700, info@savvyup.com or private message.




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