529s
Understanding
the value of
The 529 college-savings plan has
existed for nearly two decades, yet
many families still aren’t using it.
10
%
In fact, less than
of families actively saving for college used a 529 or Coverdell plan.
*GAO.gov, A Small Percentage...
A 529
has many
compelling
benefits
Investment gains and withdrawals
are federal tax-free if the savings
are used toward qualified higher
educational expenses.
Many states also provide tax
breaks for 529 contributions.
Use the following
tips and information
to make the most of
the 529
Comparison shop1
Every state manages at least one
529 plan, and each plan has
different rules. You can invest in
a plan from any state.
Con...
offer a tax deduction to residents who
invest in their plans. A side-by-side
comparison of 529 plans is available
on Savin...
Understand gifting rules
for annual contributions2
Contributions to a child’s or
grandchild’s 529 plan are treated
as gifts under federal gifting rules.
Individuals can give...
It’s best to open a 529 when
a child is younger and make
annual contributions instead
of waiting until the child
nears col...
Special one-time,
prorated gift3
Under special provisions for 529s,
an individual can make a one-time
$70,000 contribution to a 529 plan
($140,000 for marr...
Transferring 529 funds4
529s are also flexibile.
If your original beneficiary doesn’t
use all the savings, you can transfer
the savings to another...
You can also save them
for future generations or
use the money on your own
higher education expenses.
To learn more about A 529, visit Regions.com/MyGreenGuide
This information is general in nature and is provided for educat...
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Understanding The Value Of 529s

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Looking to start saving for your children's college? The 529 savings plan is a great place to start. Take a look as we give you the tax benefits of this plan as well as some tips for getting set up.

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Understanding The Value Of 529s

  1. 1. 529s Understanding the value of
  2. 2. The 529 college-savings plan has existed for nearly two decades, yet many families still aren’t using it.
  3. 3. 10 % In fact, less than of families actively saving for college used a 529 or Coverdell plan. *GAO.gov, A Small Percentage of Families Save in 529 Plans, Dec. 12, 2012.
  4. 4. A 529 has many compelling benefits
  5. 5. Investment gains and withdrawals are federal tax-free if the savings are used toward qualified higher educational expenses.
  6. 6. Many states also provide tax breaks for 529 contributions.
  7. 7. Use the following tips and information to make the most of the 529
  8. 8. Comparison shop1
  9. 9. Every state manages at least one 529 plan, and each plan has different rules. You can invest in a plan from any state. Considerations include a plan’s investment menu, contribution limits and other rules.
  10. 10. offer a tax deduction to residents who invest in their plans. A side-by-side comparison of 529 plans is available on SavingforCollege.com. 34states
  11. 11. Understand gifting rules for annual contributions2
  12. 12. Contributions to a child’s or grandchild’s 529 plan are treated as gifts under federal gifting rules. Individuals can give up to $14,000 in 2014 ($28,000 per couple) without filing a gift-tax return.
  13. 13. It’s best to open a 529 when a child is younger and make annual contributions instead of waiting until the child nears college age and then contributing a larger sum.
  14. 14. Special one-time, prorated gift3
  15. 15. Under special provisions for 529s, an individual can make a one-time $70,000 contribution to a 529 plan ($140,000 for married couples) and prorate it over five years without gift- tax consequences.
  16. 16. Transferring 529 funds4
  17. 17. 529s are also flexibile. If your original beneficiary doesn’t use all the savings, you can transfer the savings to another member of your family and keep the tax-free growth and withdrawal benefits.
  18. 18. You can also save them for future generations or use the money on your own higher education expenses.
  19. 19. To learn more about A 529, visit Regions.com/MyGreenGuide This information is general in nature and is provided for educational purposes only. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your specific situation.

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