Is a 529 plan the right option for your clients? Do you have questions on 529 plans your clients already started? We’ve selected several articles to help answer those questions and learn more.
How parents can navigate 529 college savings plans during a market slump
For some 529 savers, the market slump has thrown your educational investment strategy a curveball. This article, from Yahoo Finance, offers a few pieces of expert advice to adjust course and take action, including delayed withdrawals, reallocation, student loans and more.
What to Do With a 529 Plan If Your Kid Doesn't Go to College
This article, from Consumer Reports, explains that there are smart options for using those savings that won't incur a tax bill. It discusses ways that 529 funds can be used for purposes other than traditional undergraduate or graduate education. Funds can be used for community colleges, vocational schools, other family members or to provide special-needs services. In some cases, K-12 private schools may be eligible.
529 Plan Maximum Contribution Limits by State
Before you choose a plan, learn about each state’s 529 plan total lifetime contribution limit in this article from Forbes. There are other limitations that may affect your tax burden that you should consider.
Grandparents Can Use 529 College Saver Plans for Grandkids Without Hurting Financial Aid
Starting in the 2024-2025 school year, a streamlined FAFSA application will calculate student income by using tax return data. CNET reports that students will no longer need to report cash support from grandparents. Any money they receive from grandparents via 529 plans for educational expenses in one year will no longer hurt the amount of financial aid they receive during the next.
Back to School, Back to Savings: 529 Plans as a Strategy
This article, from Bloomberg Tax, reminds us that it is never too early to start saving for your child’s education expenses, which are on the rise. Section 529 education savings plans also provide tax benefits, flexibility, and control. Consider this strategy to save sooner than later and ease the financial impact on your family.
Marianne Busch is the director of content strategy at Advisor Perspectives.
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