It Is Not Cheap to Go To College

by | Jan 13, 2020 | Wealth Management

In 2018-2019, tuition and fees averaged $35,830 for private colleges, and $10,230 for in-state public colleges, according to Sallie Mae.  It is recommended to start saving for college early on and the preferred savings vehicle we recommend is a 529 savings plan.  Some of the benefits of a 529 plan are the following:

  • Tax-free growth
  • Tax-free distributions for qualified education expenses (including registered apprenticeships)
  • Some states offer a state income tax deduction (not CA)
  • Typically, minimal impact on financial aid because assets are treated as belonging to the account holder, not the student
  • Tax-free withdrawals up to $10,000 for private, public, or religious elementary and secondary schools and student loan repayments ($10,000 lifetime maximum)
  • The donor controls the account
  • No income limitations

BFSG can manage client 529 accounts through my529 (Utah’s plan).  If you want to find out more about 529’s or how to get started, give us a call.

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