Tax Preparation

529 Plan

What are 529 Plans? 

529 plans are tax-advantaged investment vehicles, established to encourage savings for future higher education expenses for an assigned individual. 529 plans are either provided by a state or by an educational institution.

What are the advantages of 529 Plans? 

Contributions to 529 plans grow tax-deferred, and distributions taken for the beneficiary’s qualifying education expenses are tax-exempt, similar to Roth IRAs. Additionally, annual contributions to 529 plans may yield tax deductions at the State level. For example, Georgia’s 529 plan allows its married participants to deduct up to $4K of contributions per beneficiary per year. For all other filers, the deduction is limited to $2K per beneficiary per year. 

Who qualifies & why should you adopt?

Any person with a qualifying family member who plans to attend post-secondary education and/or plans to attend a K-12 school with tuition or educational expenses should explore these plans.  Additionally,  plans can be transferred among states and the beneficiary can be transferred to another child should a circumstance arise where the funds are not used.  

This is not an offer to buy or sell any securities or perform a specific strategy. Please consult your financial advisor before exploring these opportunities. 

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