The cost of college keeps rising, making it crucial to start planning early for your child’s
education. One of the most powerful tools in your financial tool box is the 529 college savings
plan. At Generations Planning Group, LLC, we want to empower you to use this valuable
resource. This is also a powerful way for grandparents and other loving relatives and friends to
contribute toward a young person’s education.

What is a 529 Plan?

A 529 plan is a tax-advantaged investment account specifically designed for college savings.
Contributions typically grow tax-free, and qualified withdrawals for educational expenses are not
subject to federal income tax. Many states also offer additional tax benefits for residents who
contribute to their in-state 529 plans.

Maximizing Your 529 Savings:

Here are some key strategies to get the most out of your 529 plan:

  • Start Early: The power of compound returns is your friend! The sooner you begin
    contributions, the more time your money has to grow.
  • Contribute Regularly: Even small, consistent contributions can significantly increase
    over time. Consider setting up automatic transfers to ensure you stay on track.
  • Employer Matching: Some employers offer matching contributions to your 529 plan,
    giving you free money for your child’s education. Take advantage of this valuable
    benefit!
  • Investment Options: Most 529 plans offer various investment options with varying risk
    profiles. Please consult with us to choose an appropriate asset allocation that aligns with
    your investment goals and risk tolerance.
  • Beneficiary Flexibility: While initially intended for the named beneficiary, 529 plans
    often allow you to change beneficiaries within your family if needed. This flexibility
    provides peace of mind if your child’s educational path changes.
  • Qualified Expenses: 529 funds can now be used for a wider range of qualified expenses
    beyond just tuition, including room and board, fees, and in some cases K-12 private
    school tuitions (up to certain limits).
  • In many cases, 529 accounts that are not used for college may be eligible for deposit into
    a Roth IRA for the child.

We help clients stay on top of the 529 plan rules they need to know to better use this good
tool.

Beyond the 529:

While 529 plans are a powerful tool, there may be other solutions. Here are some additional
strategies to consider. Ask us about these and consult your tax advisor for the tax details:

  • Scholarships and Grants
  • Coverdell Education Savings Accounts (ESAs).
  • Roth IRAs

Developing a College Savings Plan

Every family’s financial situation is unique. At Generations Planning Group, LLC, we can help
you create a personalized college savings plan that considers your goals, risk tolerance, and
financial situation. Contact us today to schedule a consultation and get started on your child’s
bright future!


Remember: Saving for college doesn’t have to be overwhelming. By starting early, utilizing
tax-advantaged tools like 529 plans and exploring other options, you can help your child build
the resources they need to pursue their educational dreams.

Securities offered through IFP Securities, LLC, member FINRA/SIPC. Investment advice
offered through IFP Advisors, LLC, a registered investment adviser. IFP and Generations
Planning Group, LLC are not affiliated.