529 plan can help ease college 'sticker shock'

Author

Edward Jones - Chad Choate, AAMS

For more information about the author, click to view their website: Edward Jones

Posted on

Aug 08, 2024

Book/Edition

Florida - Sarasota, Bradenton & Charlotte Counties

share-this
Share This

The school year will soon be here. And if you have young children, you’re one year closer to the day when they may be headed off to college. When that day arrives, will you be financially prepared?

            

College isn’t cheap. For the 202324 academic year, the average cost — including tuition, fees, housing, food, books, transportation and other expenses — was nearly $29,000 for in-state students at four-year public colleges and universities, and about $60,000 for private schools, according to the College Board. Most students do get some type of financial aid or scholarships, or both, but even the “net” price of college can be considerable. So, it’s a good idea to begin a savings program as early as you can.

           

One popular way to build money for college expenses is through a 529 education savings plan. When you invest in a 529 plan, your earnings can grow tax deferred and your withdrawals are federally tax free when used for qualified education expenses — tuition, fees, books and so on. And while you can invest in any state’s 529 plan, you might be able to deduct your contributions from your state income tax or receive a state tax credit if you invest in your own state’s plan.


Despite these tax benefits, some people are concerned that a 529 plan can prove costly in terms of lost financial aid. And the value of a 529 plan is looked at as an investment asset on the Free Application for Federal Student Aid (FAFSA). However, recent changes to FAFSA may mean that a 529 plan has a relatively small effect on the amount of aid you may receive.

           

A 529 plan also can be used to pay for other costs, including:

 

 K-12 expenses –You can use a 529 plan to pay K-12 expenses, up to $10,000 per student per year. Not all states comply with this 529 expansion for K-12, so you might not be able to claim deductions and your withdrawals could be subject to state tax penalties. 

           

 Apprenticeship programs – A 529 plan can be used to pay for most expenses connected to apprenticeship programs registered with the U.S. Department of Labor. These programs are often available at community colleges and combine classroom education with on-the-job training.

          

  • Student loans – You can withdraw funds from a 529 plan to repay qualified federal private and student loans, up to $10,000 for each 529 plan beneficiary and another $10,000 for each of the beneficiary’s siblings.

           

Another potential advantage of a 529 plan is its transferability. If you’ve named a child as a 529 plan beneficiary, and that child eventually chooses not to pursue any post-secondary education, you — as the account owner — can name another family member as beneficiary. And with the passage of the SECURE 2.0 Act, any unused 529 plan funds up to a lifetime limit of $35,000 can be transferred to a Roth IRA for a beneficiary, free of taxes and penalties. There are certain rules governing this 529-to-Roth move — for example, you must have had your 529 plan at least 15 years — so you’ll want to consult with your tax advisor before making any moves in this area.

           

If you’d like to invest in your children’s future education, a 529 plan can be a good choice — so study up on it soon.

 

Chad Choate III, AAMS
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
chad.chaote@edwardjones.com

 

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Other Articles You May Like

Alzheimers Rummaging: Everything You Need to Know - AIHC Alzheimers Rummaging: Everything You Need to Know

Alzheimers Rummaging: Everything You Need to Know - AIHCEverything You Need to Know About Alzheimers RummagingSee our latest Blog post:https://www.americaninhomecare.com/blog/2024/09/16/alzheimers-rummaging-everything-you-need-to-know/Rummaging behavior in individuals with Alzheimer's stems from several factors, including memory loss, confusion, and anxiety. As cognitive function declines, the need to search for something familiar or the desire to feel a sense of control can lead to rummaging. This activity may provide them comfort or a sense of purpose, even if the items they seek are no longer relevant or useful (See post for more - link is up above)If you, a family member or friend need a little extra care, and still want to live at home -- We can help with Home Health Care Services --We refer qualified and compassionate home health care providers that have been thoroughly screened to support our goal of making living and aging at home safe, comfortable and affordable. Referred Care Providers are available on an hourly, daily, weekly, or live-in basis.Care Providers: Register and take an important step towards taking control of your career! Case opportunities include days, evenings, nights and extended care shifts. We register companions, Home Health Aides, Certified Nursing Assistants, Nurses and LPN's.https://www.americaninhomecare.com

Finding the Right Florida Agent

Real Estate Agents are all alike.Realtors? Theyre a dime a dozen! and What do agents really do anyway?I do hear these comments, and it does bother me.Not for the reasons you think it bothers me because we individual agents havent done job number one: introducing ourselves to you and the market as a person, and as a professional.  Im sure if you knew what each agents special sauce is youd think differently on that dime a dozen comment!In other words why should you use me as opposed to doing it yourself or choosing one of the more than 216,000 other licensed agents in Florida?Lets first address you DIYers when Greg and I moved from Spring Hill to Bradenton here in Florida, and even selling my home of 23 years in Alpharetta, GA I was a licensed agent, but not active.  I didnt have access to the MLS, lockboxes, or contracts.  I knew enough to pay an active practicing colleague for her valuable service, tools and support.  Not only was she able to do background research on the property I was purchasing, but she was also a partner in the transaction and a sounding board in the negotiation process. Bottom line was that I knew I stood to lose way more than the percentage of the deal that I had agreed to pay her.  I knew her knowledge, research and negotiation skills would net me a higher outcome than if I moved forward thinking I had all the answers (even being a licensed agent myself).  You see, it was my own property, my investment, and I was like many buyers and sellers too close to the transaction to be 100% objective.So, lets say I just convinced you to partner with an agent. Who should you choose?As you might guess, Im here to make the case that not all agents are alike, and certainly not equal.  What sets us apart is who we serve and how we do it.  So you, as the consumer, need to be very clear about what your needs are and what you want to accomplish.So now youre thinking, Come on Jude how am I supposed to know those answers?  I dont even know where to begin!  When I get a call from someone like you just entering into the market I ask to meet them, preferably in person in a coffee shop or at their home.  I like to spend a little time asking questions and getting to know their story, their vision, their desire, their situation.  You see, knowing all of this seemingly extra stuff helps me guide, advise, and add value to their transaction.If you consider working with an agent to help you buy a property and she just jumps straight to yes, Ill show you that property you might want to rethink the relationship because she wont have the insight she needs to be of true service.Same with if youre looking for an agent to sell your property.  If your first meeting with her is all about what she can do for you and what a stellar agent she is and she skips right over learning your needs wants, desires, time frame and goals then youll be working on her agenda, shell be flying blind, and thats a recipe for disaster.Bottom line as much as you need to vet the agent youre considering, make sure theyre curious about you.  (Thats my tip for those of you dating, too!)LIFE CHANGES ARE HARD.  HOME CHANGES DONT HAVE TO BE.

The Respiratory System: Age-Related Changes & COPD

The respiratory system, like many of the other human systems (e.g., cardiovascular, digestive), is a wondrously complex and sophisticated arrangement of organs working together to maintain homeostasis.Contact an Office in Your AreaChronic obstructive pulmonary disease, more commonly referred to as COPD, is a health problem facing adults in the U.S. Because of its progressive nature and increased age as a leading factor, there is a greater prevalence of COPD in seniors. The good news is that many adults can easily reduce their risk of COPD through lifestyle management.  COPD represents a group of lung diseases, with the two most common being emphysema and chronic bronchitis.Symptoms of COPD includeConstant coughingWheezingShortness of breathCoughing up mucusTightness in the chestResearch also suggests that there may be a link between poor air quality and COPD. The American Lung Association estimates that between 80-90% of COPD cases result from smoking. Unsurprisingly, secondhand smoke is a significant risk factor as well. Seniors should take the following steps to reduce their risk of COPD:Older adults that smoke should get support from a primary care physician and take steps to quit. There are many programs, services, and products that can help.Seniors should avoid contact with secondhand smoke whenever possible.Reducing exposure to air pollution can help relieve symptoms. Many cities issue poor air quality warnings when these warnings are in effect, seniors should limit outside activities. Seniors should avoid airborne irritants (chemicals, fumes, etc.) in the home.A healthy diet and exercise plan can improve lung function and overall health with direction from a physician.Older adults should understand the impact of aging on their respiratory system and reduce their risk of any related diseases, illnesses, or conditions.Doctors may recommend getting vaccinations for both influenza and pneumococcal pneumonia to guard against further breathing complications.Comfort Keepers Can HelpComfort Keepers elevates the human spirit for todays seniors and their families through a unique, individualized approach to care that helps seniors thrive and achieve greater wellbeing by fostering everyday positive moments, connection, and a more purposeful life no matter their age or acuity. As part of a healthcare team, an in-home caregiver can assist with activities that slow disease progression or reduce the risk for those with respiratory issues. Comfort Keepers caregivers can help by supporting physician-recommended health programs, preparing meals, encouraging prescribed physical activity, reminding seniors to take medications, and providing transportation to scheduled appointments. References:Healthline. Everything You Need to Know About Chronic Obstructive Pulmonary Disease (COPD). Web. 2018.Everyday Health. 5 Best Ways to Prevent COPD by Chris Iliades, MD. Web. 2018.Aging Care. An Overview of COPD by National Institutes of Health. Web. 2017.Unity Point Health. The Top 8 Respiratory Illnesses and Diseases. Web. 2014.American Lung Association. Lung Capacity and Aging. Web. 2017.Centers for Disease Control and Prevention. Chronic Respiratory Disease. Web. 2017.

Local Services By This Author

Edward Jones - Chad Choate, AAMS

Retirement Planning 828 3rd Ave. W., Bradenton, Florida, 34205

Experience and BackgroundI am a financial advisor in Bradenton, FL, and began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals.As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that.Whether you're planning for retirement, saving for college for children or grandchildren, or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service.But we're not alone. Thousands of people and advanced technology support our office so that we can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals.I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program.I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.

Edward Jones - Chad Choate, AAMS

Investments 828 3rd Ave. W., Bradenton, Florida, 34205

Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.

Edward Jones - Chad Choate, AAMS

Financial Services 828 3rd Ave. W., Bradenton, Florida, 34205

Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.