Since every one is still doing there taxes , I thought how important it would be for people who have children going to school, or planning for children to go to college to know that starting a 529 plan would be very helpful. It does not matter how old your kids are whether they are toodlers or the kids are in high school. Any time would be a good time to start up 529. If u need more info and working of this plan please google 529 and u will find a wealth of info online.
529 plan is a tax advantaged savings plan designed to encourage savings for future college costs. With my son going to college, believe me when I say college tuition and fee is very expensive. With children having mind of their own would choose what interests them and it’s fair to give them the choice in choosing what they want to do and become when they grow up.
Investing in a 529 plan may offer college savers special tax benefits. Earnings in 529 plans are not subject to federal tax and in most cases, state tax, so long as you use withdrawals for eligible college expense, such as tuition and fee, room and board, books . Most of the college expense would be taken care of through this plan. What this will not take care is when you children eat out, entertainment etc. parents have to pay the bill.
The early you start putting money into this plan you would benefit by it. Every state the contribution limits vary, so u want to check the website www.savingsforcollege.com . This website provides the info for each state and the deadline for contribution. It would be helpful for u to plan forward. You could google up specifically for your state also.
Say you invested into 529 and did not use it for higher education, your kids graduated and u have a good balance sitting in 529. Won’t that be wonderful. You want to withdraw money for retirement, u will pay taxes only on the earnings portion of the withdrawal and not the principal . So know u have saved up for retirement also.