Most investors are familiar with 529 plans to save for college, but did you know that 529s can be used for so much more? A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs, including those for students from kindergarten through 12th grade.
If you want to support the future of a child in your family, read on to learn more about how 529 plans can help.
With remote learning now available to some younger students, 529 plans can help create a suitable learning environment at home. For younger children, 529 plan assets can be used to pay for computers, internet access, and other equipment and some supplies.
Private school and extracurriculars
You can also use 529 plans to pay for extracurricular classes and private school tuition, up to $10,000 per year per student for kindergarten through 12th grade.
If your young person is no longer a student, 529 plans can help finance registered apprenticeships and repay college debt.
In addition to the many uses of a 529 plan, it also includes many financial benefits. A 529 plan can offer unsurpassed tax breaks and simplified tax reporting. These plans are also typically low maintenance and offer you the flexibility to stay in control of the account.
Prior to investing in a 529 plan, a LPL registered financial advisor from our Wealth Management Group at Fremont Bank can help reveal all of the potential benefits for your 529 plan and understand any specific state benefits, including tax benefits, financial aid, scholarship funds, and protection from creditors. Reach out today for your 529 plan consultation by calling (800) 400-7067 or visit our FB Investment Services website.