Starting your college 529 savings plan is the first step to preparing for college. But to meet your deadline, regular contributions are key to growing your investment.
Since your 529 plan information does not come directly from Brentwood Financial Advisors, some clients may forget to defer payment. This is a reminder to contribute to your existing 529 plans.
According to savingforcollege.com the cost of a 4 year in-state public college in 2037 is projected to be around $167,675. Contributing each year can help to offset these costs in the future.
To contribute, simply make the check payable to your 529 plan and mail it to our office, we will take it from there. Don’t forget, anyone can contribute, so ask your friends and family too! College funding is a great gift that anyone can give your child.
Benefits of Contributing Now.
If you don’t already have a college savings strategy, now is a great time to start putting money into a college 529 savings plan. With current stock market volatility, participating in a plan that invests funds in the stock market allows your contributions to not only grow tax-free but also remain tax-free when you make withdrawals for eligible expenses later.
529 Plan Flexibility
Prior to the Tax Cuts and Jobs Act (TCJA), 529 plans could only fund post-secondary education expenses, like tuition and fees, room and board, textbooks, etc. Withdrawals used for these kinds of eligible expenses were tax-free.
There have been some important changes to the law that expand upon how 529 plans can be used. Under the new tax law:
- 529 plans can now be withdrawn tax-free, up to $10,000 per year, to pay for tuition at K-12 schools as well. Before using funds for K-12 education, be sure to discuss it with an experienced financial professional. Though this law was passed in 2017, withdrawals may be subject to state taxes in some states.
- The Setting Every Community Up for Retirement (SECURE) act has made it possible for families with 529 college savings plans to use up to $10,000 in 529 savings per student to help pay for student loans.
- 529 funds can now be used to pay for online education at eligible institutions of higher learning. For the most part, most accredited public, nonprofit, and private post-secondary institutions are eligible. You can check to see if your school is eligible for 529 plan funding online at The United States Department of Education.
Brentwood Financial Advisors is seasoned in complex wealth management needs. We have decades of collective experience and knowledge that you should use to your best advantage. CONTACT US to schedule a review with one of our financial professionals today to discuss your college savings strategy to ensure that your family is on the right track.
Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer’s official statement and should be read carefully before investing.Ðnvestors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state's 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investing in any state's 529 Plan