Give the Gift of a College Education
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.
Click below to read other articles from the Christian Financial Advisors May 2016 Newsletter
Value of Being a Christian Financial Advisors Client
The Gift of a College Education
Remembering Memorial Day
Ideas for Mother’s Day
Thank You For Sharing!
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Past performance is not indicative of future results. For any discussion of equity securities: Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. For any discussion of taxes: Christian Financial Advisors® does not provide tax advice and encourages you to seek guidance from a tax professional.