Saving Money For College In Now More Important Than Ever
College tuition and fees are still on the rise, with no sign of slowing down. By investing in a 529 college savings plan today, you can create a hedge against those rising costs in order to provide your child with an affordable education. These plans work similarly to a Roth account. They invest your after-tax contributions into stock and bond mutual funds and other similar investments. Most plans offer several options for the investor to choose from based on their risk tolerance, investment horizon, and growth goals. The money in the 529 plan will go up or down based on the performance of the investments. At Noble Wealth Management, we can help you select investment options that match your unique needs and circumstances.
The Benefits Of A 529 College Savings Plan
- Contributions are not tax-deductible, however, the earnings made in a 529 college savings plan grow tax-free
- You do not pay taxes on distributions from 529 accounts as long as they are used for qualified expenses (paying for college)
- If you invest in another savings vehicle, such as a mutual fund, you will pay yearly income taxes as well as capital gains taxes when you withdraw
- In most cases, your child or beneficiary can’t legally access the funds in the account, so you know it won’t get used for the wrong purposes
- The account owner (you) can withdraw funds at any time, for any reason, however, you will incur taxes when withdrawals are non-qualified (not for college tuition)
Noble Wealth Management is based in Kennewick, WA. We assist families in the local area, including the following towns:
- Pasco, WA
- Richland, WA
- Walla Walla, WA
- Prosser, WA
- Hermiston, OR