Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

What You Need to Know About Your 529 College Savings Plan

By James Garfinkel Subscribe to RSS | January 12th 2012 | Views:
loading
 
  



A 529 plan is a tax-advantaged college savings plan that enables parents, grandparents and other loved ones to save for college in a tax-advantaged manner. Money saved using a 529 plan can be used to pay for tuition, and certain other items, including specific room-and-board expenses, textbooks, school supplies, and other qualified higher-education expenses.

Most states offer a tax deduction, so not only does the savings and growth accumulate tax-free, but your contribution will also yield immediate tax benefits. For example, New York State taxpayers can deduct up to $5,000 (a married couple filing jointly can deduct up to $10,000) of 529 plan contributions from their state taxable income each year. A recent Wall Street Journal report showed that a couple filing a joint 2011 return with $100,000 in taxable income and contributions of $2,500 each to two children’s in-state 529 plans would provide a tax savings of $343. It should be noted that plan contributions are not deductible for federal income tax purposes.

Not all 529 college savings plans are created equal. Before deciding which college savings plan is best for you and your family, you should consider the available investment options and relative costs or fees between the various state-sponsored plans. Some states restrict state tax deductions to plans sponsored by the taxpayer’s state, while several other states allow residents to choose a 529 plan from any state and still receive a valuable deduction.

You are able to change the way your existing investments are allocated once per year or whenever you change the account beneficiary. The account owner can change the allocation of future contributions at any time.

One of the most frequent criticisms about 529 plans is what happens if the intended beneficiary does not go to college. Luckily, account owners have lots of options. You can leave funds in the 529 plan account in case the beneficiary decides to attend college in the future. You can create a new account for another family member and use the existing 529 assets to pay for that individual's college education. If you choose to close the account, accumulated earning will be subject to federal income tax and an additional penalty of 10%, as well as any applicable state and/or local income taxes.

Regardless of income level, a well-structured juvenile life insurance policy can be used to secure lifetime insurance coverage at the lowest cost of insurance and provide an accessible source of funds for college.

James Garfinkel - About Author:
James Olion, founder and CEO of New Amsterdam Life Insurance Foundation. Find out more about 529 Plan and 529 College Savings Plans and child life insurance quotes at http://newamsterdamlife.com.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/what-you-need-to-know-about-your-529-college-savings-plan.htm

Related Insurance Articles Subscribe to RSS

Make your Life Insurance plan the ideal savings option
Published by Max York on February 23rd 2012 | Insurance
Life insurance plans apart from giving security in times of need also in many ways help policy holde...
 
Assess your business insurance plan for better returns
Published by Andrew Edwards on February 21st 2012 | Insurance
While running business enterprise we have to look in plans which are suitable and make everything or...
 
Let Georgia health insurance plan treat your medical expenses
Published by Ricky Martin on June 23rd 2012 | Insurance
So time has come, do let Georgia health insurance plan treat your medical expenses. It is a big burd...
 
How can I get Debt Reduction? How can a debt plan help me repay my debts?
Published by Deby Suportie on March 28th 2012 | Finance
Debt reduction is a program provided by debt companies so that those who are struggling with debts c...
 
Georgia health insurance plan supports you during your bad time
Published by Ricky Martin on June 20th 2012 | Insurance
Whenever you are in trouble, you need some helping hand at that time. Those phases called bad times ...
 
Georgia health insurance plan act as umbrella for your life
Published by Ricky Martin on July 26th 2012 | Insurance
With all these benefits Georgia health insurance plan is acting like umbrella for many people. So if...
 
Affordable medical insurance plan
Published by Lessardcasey on January 13th 2012 | Insurance
In today's world, it's important to be prepared for emergencies. While having a savings account is a...
 
Points to facilitate product liability insurance as your uphold plan
Published by Andrew Edwards on April 7th 2012 | Insurance
Defects in products are quite common these days just because manufacturers fail to perform...
 
ULIPs - the best investment plan
Published by Chris Luke on April 3rd 2012 | Insurance
Being introduced in the late 1960s, the Unit Linked Insurance Plan is today recognized as the best i...
 
Things to consider when purchasing a wedding insurance plan
Published by Herry Smith on January 24th 2012 | Insurance
The wedding insurance plan covers things like attire, presents, rings and deposits on your different...
 
Obtain the exact type of coverage through business insurance plan
Published by Andrew Edwards on April 14th 2012 | Insurance
As a business owner it is your responsibility to look into the plans suitable for your company...
 
I am in a debt management plan and have been made redundant – what can I do?
Published by James Falla on November 28th 2011 | Finance
With the possibility of wages being reduced and jobs being lost as a result of the government cuts, ...
 
Georgia health insurance plan is excellent option for your health cover
Published by on June 23rd 2012 | Insurance
Only getting health insurance policy is not important, getting the right one is more important, beca...
 
How you can choose right Medicare supplement plan?
Published by Pearllike on June 20th 2012 | Insurance
Find right coverage Madigap Plans and Medicare Supplement Plan for insure your supplemental Medicare...
 
Georgia health insurance plan made for everyone
Published by Ricky Martin on July 27th 2012 | Insurance
With all these benefits we can say that Georgia health insurance plan is made for everyone. And as e...
 
Pros of inexpensive business interruption insurance plan
Published by Andrew Edwards on April 17th 2012 | Insurance
You are making decision on business coverage ideally suits requirements of kind of business we are i...
 
Debt management plan: are they right for you?
Published by William Booker on May 15th 2012 | Finance
Don’t choose any debt management plan unless if suits your demands. Ensure that the program crafte...
 
Benefits of Georgia Health Insurance plan
Published by Ricky Martin on July 26th 2012 | Insurance
Georgia Health insurance plan is easy and very helpful because it gives you the life secure challeng...
 
Different insurance plan to get cheap car insurance
Published by Robmichae on March 2nd 2012 | Insurance
Our car is a very important part of our life. A day without it can turn out to be a disaster day of ...
 
Get your health cover from Georgia health insurance plan
Published by Ricky Martin on June 20th 2012 | Insurance
People can cover their health related issues from Georgia health insurance plan, and can enjoy your ...