- By working with us we can help find the right investment strategy for you and your family. The 529 Plan is an education savings plan offered by a state or educational institution that helps families set aside money for a future college education. 529 Plans have been set up in each state and some offer more than one option. As long as the plan satisfies a few basic requirements, the federal tax law provides special tax benefits for you.
529 Plan Highlights
- Investors may contribute up to $55,000 per beneficiary in a single year.
- There is no federal income tax on earnings while they are in the account. In addition withdrawals made to pay for qualified higher education expenses are not federally taxable.*
- Investors can choose from several asset allocation portfolios based on investment preference and risk profile.
- There is only a $50 minimum and any Relative can open a plan for any Beneficiary.
- If you are interested in setting up a corporate account several investment companies will offer specialized web access for your company.
*Under a "sunset provision" these changes are scheduled to expire on 12/31/10, in the absence of reenactment. As with all tax related decisions, consult with your tax advisor.
Let Salem Schooner help you find the best 529 Plan for your needs.
With the rising costs for college it is becoming more difficult for families to afford higher education for their most precious investment. The expected tuition costs will increase to over $300,000 by the time a new born child reaches college age.
Estimated Cost of College
