Recent trends have continued to stress the importance of a college education in the American job market. If you or a family member have plans to attend college at any point in the future, a 529 plan can help you build up savings for this future expense. If you need help sorting through your 529 plan options in Tucson, contact your financial planner for professional guidance.
529 Plan Basics
A 529 plan is an investment account utilizing mutual funds or ETFs that are offered by financial institutions. This account allows you to put away money for higher education while receiving tax free growth among other benefits. 529 plans are offered by many different states, with each plan offering unique pros and cons. Thus, you can shop around for the best 529 plan for your needs, as neither your state of residency nor your ultimate educational destination affect your ability to use your 529 plan to pay for education. Furthermore, 529 plans can be used to save for a child’s education or to finance your own adult education at a state or community college.
529 Plan Benefits
Planning ahead for college using a 529 plan offers many benefits. 529 plans grow free of federal taxes and in most cases will grow free of state taxes as well. Some states will also allow you to deduct your 529 plan contributions from your annual state taxes. These college savings plans are very easy to use, while also offering various levels of customization so you can tailor your 529 plan to afford you the most benefit. 529 plans are also extremely accessible; they are available through both your state or via your financial planner.
Are you interested in the benefits you can gain from investing in a 529 college savings plan? Financial Directions LLC is here to help you navigate all your financial needs in Tucson, from college savings to retirement. Click through our website or contact us today by calling (520) 408-7777 to reach one of our experienced financial planners.
