529 Changes

By Jonathan Greeson, CFP

Most parents have already heard about 529 education savings accounts, so I won’t bore you with the details.  Their main benefit is that your money can grow and be used tax free (Federal Income Tax) for “qualified expenses.”  There can be state tax advantages as well.

For me, the “qualified expense” requirement has always been a problem because all students have different needs.  Depending on account size, the tax break wasn’t worth the hassle of proving you used the money on qualified expenses.  I don’t think anyone wants to basically go through an audit to save $10.00.  Fortunately, that list has been expanded!  

Now students can buy computers, tablets, and other technological tools that they need to succeed in school.  Apparently, even internet access is a qualified expense now!  It’s about time, right?

There are also additions to education tuition and fees.  Now we can use 529 account money for credentials or licenses.  That’s for professionals already in their careers as well as students.  Continuing education courses count now too!

Of course, depending on your situation, a 529 could be a terrible idea.  That’s why you should speak to a financial professional before making any decisions.  It doesn’t have to be me, but I would love the opportunity to work with you.  Email me!       

Jonathan Greeson Financial Planning is located in Pikeville.  For more information, visit www.jonathangreeson.com.  Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC.  BWA and Jonathan Greeson Financial Planning are independent of each other.   Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.