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 As the cost of sending a child to college grows higher every year, families are looking for smarter funding alternatives. Today, one of the most talked about products in educational funding is the 529 College Savings Account, which offers special tax-deferred savings, as well as unique gift and estate-tax benefits! Like qualified plans, no federal income taxes are paid on earnings until withdrawal. 529 College Savings Accounts offer generous maximum contribution limits, there are no income limitations, and earnings are compounded tax deferred for as many years as you wish. Then, when it's time for college, the accumulated earnings are tax-free as long as withdrawals are used for qualifying higher education expenses. Plus, up to five years of contributions can be written off in a single year for each beneficiary, with no gift-tax consequences. Note that no more contributions by that individual may be made for five years. If college is a part of your child or grandchild's future, a Matsock & Associates representative can help you set up a 529 College Savings Account which can help you to reach this important goal. Disclaimer: 529 Plans are state sponsored investment programs. You should consider the potential benefits (if any) that your own state's plan (if available) offers to residents prior to considering another state's plan. There maybe tax benefits to plans offered by your resident state. Withdrawls for other than higher education expenses will be subject to federal income taxes and a potential 10% penalty on earnings. Please note that assets in a 529 Plan could impact the beneficiary's ability to qualify for grants and student loans. Municipal Fund Securities are sold by offering statement which is available from your registered representative. Please carefully consider investment objectives, risks, charges, and expenses before investing. Per IRS Circular 230 Tower Square Securities, Inc. is providing you with the following disclaimer: The information contained in this website is not intended to (and cannot) be used by anyone to avoid IRS penalties. This page supports the promotion and marketing of 529 Plans. You should seek advice based on your particular circumstances from an independent tax advisor. |
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