May 29th is 529 College Savings Day, a day dedicated to raising awareness about 529 college savings plans. These plans offer a tax-advantaged way to save for education expenses, making them a valuable tool for families planning for their children’s future.
What is a 529 College Savings Plan?
A 529 plan helps you save for future education costs with several key benefits:
- Tax Advantages: Contributions grow tax-deferred, and withdrawals for qualified education expenses are tax-free at the federal level. Many states offer additional tax benefits.
- Flexibility: Funds can be used for various education expenses, including tuition, fees, books, and room and board at eligible institutions.
- Control: You maintain control over the account and can change the beneficiary to another family member if needed.
Why Celebrate 529 College Savings Day?
529 Day is a great opportunity to:
- Increase Awareness: Learn more about the benefits and flexibility of 529 plans.
- Review Your Plan: Evaluate your current savings strategy and adjust contributions if necessary.
- Take Advantage of Incentives: Look for special promotions or incentives offered around this date.
How to Take Action
- Start a New Plan: If you don’t have a 529 plan, now is a great time to open one.
- Boost Contributions: Consider increasing your contributions to your existing plan.
- Educate Yourself: Learn more about how 529 plans work and how they can benefit you.
We’re Here to Help
At Solis Wealth Management, we are dedicated to helping you pursue your financial goals. If you have any questions about 529 plans or need assistance, please reach out to our Service Team at serviceteam@soliswealth.com.
Celebrate 529 College Savings Day by taking steps to plan your child’s educational future!
Disclosure: Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax-free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.