Our last Kid’s Focused Words of Wisdom for September.
Studies show children who know they have a college savings account, no matter the amount of money saved, are almost 7 times more likely to attend college!
Why? It gives the child a belief they have a future.
529 Savings accounts can be confusing and the new tax law seems to have muddied the waters even more.
As of 1/1/2018 you can withdrawal up to $10,000/year from a child’s 529
Typically, using funds from a 529 to pay for elementary, middle or high school is not the best solution for most families. Depositing and withdrawing funds from a 529 for private K-12 tuition should be used as a safety valve or for more advanced financial planning.
Why? Your investment time frame is shorter.
• You are taking
• You are cutting your nose off to spite your face. The benefit of the 529 is tax-free growth for a longer time frame. By withdrawing these funds early, you are missing out on the benefit of tax-free growth.
Create an EPPIC™ future for your child. Schedule your Free 15 Minute Call with Sharon to apply The EPPIC Method™ to help make the most efficient education funding decisions for your child/grandchild.