A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. Your earnings grow income-tax deferred, and the money is also free from federal income tax when it’s used to pay for qualified higher education expenses.
Savings can be used for tuition, books, and other education-related expenses at most accredited two- and four-year colleges and universities, U.S. vocational-technical schools, and eligible foreign institutions. Savings may also be used for tuition expenses at eligible public, private, and religious primary and secondary educational institutions (K-12).
There are no income restrictions to opening a 529 Plan. When it comes to choosing a beneficiary, you can choose anyone of any age, and it can also be the same person who sets up the account. There are numerous benefits of opening a 529 Plan:
If you are considering opening a 529 Plan, Machen Wealth can help you determine your payments and help you set up your account properly, so you are on the right track towards educational savings. Call us at 916- 526- 2680 and set up a consultation with our wealth advisor Scott Machen.