Best Tips For 529 Plans

Over the years we have seen many clients who utilize 529 plans. These are some of the obvious tips we think every parent should consider when they invest. The 529 plan should always be in the parents name and never in the students name. Parents assets are assessed to a much lesser degree. If the assets are in the students name they are assessed higher in the Federal Methodology financial aid. Parents should contribute as much as they can to any 529 Plan they start. Multiple sources should also contribute when ever possible.

Whether it’s taxable for other sources is up to the tax professional. All 529 plans utilized for education and/or purposes of education are tax free. Parents should shop competitively 529 plans across others states because they are not specific to the state of residence.

We see 4 main differences in 529 Plans across different states.

  1. To the best of our knowledge 34 states including the District of Columbia allow parents to take full or partial deduction for 529 plan contributions. Most states only offer this benefit to residents who use their home state’s plan. Arizona, Kansas, Maine, Missouri, Montana and Pennsylvania offer taxpayers a deduction for contributions to any state’s plan.
  2. Flexible low minimum contribution
  3. Ability to roll over money from one plan to another without state tax penalties.
  4. Various plans will have a maximum contributions to the plan

We advise parents on differences that do impact on how much they can save from one plan to another. Parents should always speak with 529 plan expert to utilize the most current 529 plan offerings specific to their situation.

To learn more how we can help discover additional financial aid for your child’s education contact our office today.

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

How Much College Can You Afford?

Many factors come into play when comes to how much college tutition a family can afford. What colleges is the student applying to? What is families’ liquid asset situation like? How much was saved for college. What financial aid forms are required? Many colleges require more forms than the FAFSA. Who is completing the forms? […]

Continue reading...

529 Plans Are Good For Parents

Many families do save for college but do not do it correctly for a variety of reasons. One is that they don’t save enough for the appropriate school that the child deserves to attend (private schools). They underestimate the true cost of education. Another mistake, saving the wrong way, a general savings account. Parents should […]

Continue reading...

Private Scholarships Are Not Worth It

The private scholarship decision is real consideration to many students every year. We know from 25 years of experience the student does not come out ahead. There are things you can do to prevent this from happening. If you are dealing with this situation, contact our office for more information. Private Scholarships — A Billion-Dollar […]

Continue reading...

Tips For Students On How To Pay For College

Through the years we have seen a number of things students can do to lower their out of pocket cost for their education. First students should always walk into the financial aid office the first day they are on campus and ask if there are any “in house” scholarships they can apply for. Many times […]

Continue reading...

Did Your College Financial Aid Award Fall Short?

Our students are continuing to receive their initial financial aid offers. Unfortunately many of the financial aid awards from the colleges are falling short. Knowing what makes a good and fair award and how to appropriately appeal, will make an immense difference in what the out of pocket cost the family will incur. We continue […]

Continue reading...

The Future Of FAFSA Financial Aid

Apparently there is a move to reduce the size of the FAFSA to a postcard. I do not see this happening. However, if it does, colleges who now require only the FAFSA will create their own financial aid form or utilize the CSS Profile which will ask for more personal information than the FAFSA which […]

Continue reading...

Appealing College Financial Aid Awards

This article and video we found on CNBC does not mention the fact that a family can appeal or negotiate for a better college financial aid award in many cases. Unfortunately parents who learn that they can appeal don’t know how or when to do so. With over 24 years of experience and assisting thousands […]

Continue reading...

We Review Grant & Scholarships Offers

It’s that time of year. Over the last two weeks excited students have started to receive their financial aid offers from colleges that they may want to attend. Unfortunately, for many students the excitement is short-lived. The reason, many of the awards are not generous and are not meeting the majority of the need in […]

Continue reading...

After The College Acceptance Letter

The USA Today article makes 5 good points. The first one is #1 on our list of 12 Things You Have To Do Before Going Off To College. Students should always check on the status of their FAFSA and or Profile online and call your school’s financial aid office to ensure their loans, grants or […]

Continue reading...