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529 Plans are state-sponsored investment vehicles for college education. They come in two forms: pre-paid tuition programs and college savings plans. 529 Plans are governed by Internal Revenue Code 529 and provide tax-deferred growth potential and federally tax-free withdrawals for qualifying college expenses such as tuition and fees, room and board, books, supplies, and equipment. Plans vary by state and may offer benefits to residents.
A 529 plan allows for contributions up to $250,000, depending on the plan. However, contributions are gifts; therefore, the $12,000 annual gift limit should be considered.
Investors should consider, before investing, whether the investor`s or designated beneficiary`s home states offers any state tax or other benefits that are only available for investment in such state`s qualified tuition program.
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Neither Woodbury Financial Services, Inc., nor its registered representatives or employees, provide tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice. |
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Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc.,
Member FINRA, SIPC, and Registered Investment Advisor - Licensed in MO, IL, CA, NY
*** 111 West Port Plaza Drive Suite 300 Saint Louis, MO. 63146 ***
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