Happy Monday Dolls,
I hope everyone had an enjoyable weekend. Mines was filled with love and laughter. Friday I watched my cousin get married to his beautiful bride and Saturday was an evening of giving back to the community by doing a back to school drive with my client. My heart is full today😊.
Last week I mentioned I would discuss the 529 College Plan. So many parents ask if they should invest in one for their children. An informed consumer has options to make the best decisions, so I’m going to do just that for you.
What Is the 529 College Plan?😮
A 529 College Plan is a way that parents, guardians or grandparents can save for a child’s college tuition. One of the main benefits is that it has tax advantages. It can now be used in connection with enrollment or attendance at an elementary, secondary public, private or religious school. In order to take advantage of the tax break, it must be used for tuition, fees, books and room and board.
What if your child doesn’t want to go to college?🙄
If the child does NOT go to college, the funds can be rolled over to another member of the family who will attend college OR can be withdrawn. If withdrawn for usage other than school, taxes must be paid on that amount.
What are the contribution limits?😌
The maximum ar this moment is $14000, without tax consequences. If you exceed this amount for the year, there may be penalties. Form 708 (United States Gift and Generation-Skipping Transfer) Tax Return explains the rules in detail.
Keep in mind, that 529 Plans play the stock market and are subject yo fluctuations.
Knowing your options is key when making financial decisions. Make the choice that is best for your situation.
If you have any questions, please feel free to comment here or email me at:email@example.com
Next week’s topic: Coverdell Education Savings Account
Have a beautiful and blessed week😊❤
Changing the lives in our community….one family at a time