Custom College Funding

A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. Contributions are treated as completed gifts and generally with a $14,000 annual exclusion. Qualified expenses include tuition, fees, books, supplies, equipment, special needs; room and board for minimum half-time students.

Deductions for a 529 plan are non-deductible on your Federal income taxes and are subject to income tax and a 10% penalty if used for non-qualifying expenses.  Your investments are limited to the strategies developed by the program in which you enroll.

After-tax dollars put into the plan allowed to grow tax-free and used for education as you see fit, no limitations!  These plans allow tax-free loans for any purpose and do not have the same limits on contributions.  Money that isn’t used for college, can be used later for your retirement.

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