529 Plans

Today, Alden Rowe is back with Jon Gay to talk about 529 savings plans - used for educational expenses. While some details vary between states, a 529 plan has special tax savings on the way in, and on its growth (similar to a Roth), as long as that money is being used for educational expenses. Sure, that includes tuition and room & board. But it can be applied to a number of other things, like textbooks, computers, off-campus housing (within reason), and even primary education up through grade 12. They can also be applied to trade school education. Different relatives can contribute to a 529 plan for a single beneficiary, and if that beneficiary doesn't use the money, it can be transferred to another beneficiary (in many cases). And of course, if the money isn't spent on qualified educational expenses, Alden explains the penalties involved. How much should you put in to a 529 plan? Of course that depends. Alden talks about some of the different factors to consider in that decision. Finally, some states limit which plans you can participate in. But these plans can be used for schools in any state. For more info on 529 plans, or anything related to your financial future, contact Alden, Shanna Tingom, and the team at Heritage Financial Strategies. https://www.heritagefinancialaz.com/ or (480) 397-1184