In today's episode, we'll be exploring a new topic - 529 College Savings Plans! We believe that every child's potential deserves to be nurtured, and that includes paving the way for their educational aspirations. Together, let's navigate the world of 529 plans... not just as a financial tool but as a means to cultivate a sense of security and confidence for your family.
EPISODE HIGHLIGHTS
- What are some benefits of a 529 plan?
- Currently, in 30 states, you can get an income tax break when you contribute to a 529
- The funds grow tax-free and are not taxes when you pull the money out (as long as you are using the money towards education - tuition, textbooks, etc.)
- If your child decides not to pursue college, gets a scholarship that covers their college expenses, or maybe decides to go to a less expensive trade school and there is still money left over in their 529, you are able to transfer that money to another child’s 529 or allow it to continue to grow and pass it on to a grandchild
- Who can contribute money to the 529?
- Anyone! If you have grandparents, aunts, uncles, or other extended family who would like to contribute to your child’s 529, they are absolutely able to do so
- If you have a wealthy relative that is interested in contributing to your child’s 529, they may have the additional benefit of offloading some of their estate tax and doesn’t require them to file a gift tax return (when gifted below a certain amount)
LINKS & RESOURCES
GreenOak Accounting - www.GreenOakAccounting.com
Therapy For Your Money Podcast - www.TherapyForYourMoney.com
Profit First for Therapists - www.ProfitFirstForTherapists.com
Profit First Academy - www.ProfitFirstForTherapists.com/Academy