Why is this topic important to me? :
Why is this topic important to me? Tuition costs increase at a rate greater than inflation. Standard savings accounts or investments are not the best way to keep pace with the cost of tuition. A 529 plan provides favorable tax treatment on college investments.
How does a 529 Plan work? :
How does a 529 Plan work? Initial Investment= $80 Bought in 2006 Value = $500 Sold in 2011 Gain of $420 The sale will result in income taxes
How does a 529 Plan work? :
How does a 529 Plan work? Initial Investment= $80 Bought in 2006 Value = $500 Sold in 2011 Gain of $420 No Income Taxes if used for education
What is a Qualified Education Expense? :
What is a Qualified Education Expense? The funds you place into a 529 Plan can only be used for Qualified Education Expenses. Qualified Education Expenses include: College Tuition; Books; Supplies if required for attendance at the higher education institution; and If the student is enrolled at least half-time in school, reasonable room and board can also be included. *Please note any non-qualified expenses = Income tax on Earnings + 10 % penalty.
Is there gift tax on 529 contributions? :
Is there gift tax on 529 contributions? No, so long as the contribution does not exceed the annual gift tax exclusion. $13,000 $13,000 $13,000 $13,000 $13,000
What to do Next? :
What to do Next? Contact your financial advisor. Calculate how much you can contribute each month. Start saving today! *You can verify whether a school is eligible by contacting the Department of Education http://www.ed.gov/ or the institution itself.
What is Storkwill? :
What is Storkwill ? Storkwill makes the creation of your will Simple Easy and Fun! Create your Will online and have it the same day! 3. Husband’s Will + Wife’s Will = $59.00. Get started at www.Storkwill.com © Storkwill LLC