529 College Savings Plans

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Choice. It may be the most important thing you can give your child when they´re ready for college. With an education savings plan in place, your savings can grow and compound, giving your child the freedom to choose which institution is right when it´s time. At Aspen Wealth Management we have the knowledge and experience necessary to help you build 529 college savings plans so you can save for higher education on a tax-advantaged basis.

Here´s a summary of basic features:

    • 529 College Savings Plans offer federal tax advantages. Accounts are funded with after-tax contributions that generally grow tax-deferred. Distributions for qualified education expenses are received federal income tax-free. Many plans offer state income tax advantages for their residents and taxpayers.

 

    • Distributions must be used for qualified higher education expenses (e.g., tuition, room and board, books, transportation and supplies for college, graduate school or professional school). If they are not used in this manner, they will be subject to a federal tax penalty and earnings will be treated as ordinary income for tax purposes.

 

  • Almost anyone can establish a 529 College Savings Plan for a named beneficiary, including parents, grandparents, siblings, aunts, uncles or colleagues. Generally, there are no income or age restrictions. You may even establish a plan for your own education.