March 10, 2008
About 529 Account
The 529 plan offers enormous tax savings if you use the money for its stated cause putting your child through college. Though your contributions to the fund are not considered tax-deductible, it will grow free of taxes and any withdrawal is also not subject to federal taxes. Depending on where you live, you might also get state tax deductions or exemptions from contributions or withdrawals. The one big-time fallback to the 529 is the fact that it may limit your chances of receiving financial aid. That s because withdrawals from the account are considered part of your child s income, and will be assessed for financial aid purposes. It may or may not be an issue, depending on how much you have saved in the 529 account.
More on 529 College Plan and arizona 529 plan
No responses to "About 529 Account"
Comments are closed.