The month of May is an exciting time of many celebrations. Mother’s Day, Memorial Day, and for many, Graduation Day for a child or grandchild from high school or college.
Do you have children or grandchildren not in college yet?
One of the nicest things you can give them is the gift of a college education. Today’s 529 qualified tuition plans serve as a tax efficient way to set up educational accounts for your children or grandchildren. While contributions to the plan may not be tax deductible, any growth in 529 accounts are tax deferred and distributions used solely for higher education expenses are tax exempt. Generally, this includes tuition, fees, books, supplies and equipment required for attendance. Reasonable cost of room and board is also included as tax exempt distributions from a 529 plan if your child or grandchild is attending school at least half time.
Want to know more about 529 plans and how to set up one or more for your children and grandchildren? Call us at 830-609-6986.
* Before buying a 529 plan, you should inquire about the particular plan and its fees and expenses. You should also consider that certain states offer tax benefits and fee savings to in-state residents. Whether a state tax deduction and/or application fee savings are available depends on your state of residence. Non-qualifying distribution earnings are taxable and subject to a 10% tax penalty.