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529 Plan: The Best Kept Secret for College Savings
In this episode, Dan & Ian outline college saving options. As the prices of higher education continue to skyrocket, The Small Business Experience is bringing you tips and tricks to use the tax law to your advantage. Throughout this episode, Dan & Ian explore all the options available to you and the tax impact of your decisions. This is important information for anyone with dependents, grandchildren, etc. Below will include a more detailed outline for the episode.
What is a 529? An investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified education expenses.
Coverdell Education Savings Account (ESA), formally called "Education IRA" : A Coverdell education savings account is a tax-deferred trust account created by the U.S. government to assist families in funding educational expenses for beneficiaries who must be 18 years old or younger when the account is established. The age restriction may be waived for special needs beneficiaries. While more than one ESA can be set up for a single beneficiary, the total maximum contribution per year for any single beneficiary is $2,000.
Coverdell Loan: KEY TAKEAWAYS
-With a Coverdell ESA, if your adjusted gross income exceeds $110,000 for an individual, or $220,000 for a married couple filing a joint return, you’re not eligible to use a Coverdell at all.
-The contributions put toward a Coverdell ESA must be made in cash and are not deductible. Contributions can be made by individuals with modified adjusted gross income that falls within an annual limit.
529 KEY TAKEAWAYS
What is considered a qualified education expense?
-Tuition, fees, books, supplies, equipment, computers and room & board.
-The IRS also allows tax-free withdrawals of up to $10,000 per year, per beneficiary to pay for tuition expenses at private, public and religious K-12 schools.
-QUALIFICATIONS: Student is enrolled at least half-time, which most colleges and universities consider to be at least six credit hours per term & be a candidate for a degree
https://www.savingforcollege.com/intro-to-529s/what-is-a-529-plan
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By With Dan & IanIn this episode, Dan & Ian outline college saving options. As the prices of higher education continue to skyrocket, The Small Business Experience is bringing you tips and tricks to use the tax law to your advantage. Throughout this episode, Dan & Ian explore all the options available to you and the tax impact of your decisions. This is important information for anyone with dependents, grandchildren, etc. Below will include a more detailed outline for the episode.
What is a 529? An investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified education expenses.
Coverdell Education Savings Account (ESA), formally called "Education IRA" : A Coverdell education savings account is a tax-deferred trust account created by the U.S. government to assist families in funding educational expenses for beneficiaries who must be 18 years old or younger when the account is established. The age restriction may be waived for special needs beneficiaries. While more than one ESA can be set up for a single beneficiary, the total maximum contribution per year for any single beneficiary is $2,000.
Coverdell Loan: KEY TAKEAWAYS
-With a Coverdell ESA, if your adjusted gross income exceeds $110,000 for an individual, or $220,000 for a married couple filing a joint return, you’re not eligible to use a Coverdell at all.
-The contributions put toward a Coverdell ESA must be made in cash and are not deductible. Contributions can be made by individuals with modified adjusted gross income that falls within an annual limit.
529 KEY TAKEAWAYS
What is considered a qualified education expense?
-Tuition, fees, books, supplies, equipment, computers and room & board.
-The IRS also allows tax-free withdrawals of up to $10,000 per year, per beneficiary to pay for tuition expenses at private, public and religious K-12 schools.
-QUALIFICATIONS: Student is enrolled at least half-time, which most colleges and universities consider to be at least six credit hours per term & be a candidate for a degree
https://www.savingforcollege.com/intro-to-529s/what-is-a-529-plan
Follow & Subscribe to The Small Business Experience:
Youtube: https://www.youtube.com/channel/UCgCgrWab2pDhnQ3pZvbI0Zw
Instagram: https://www.instagram.com/smallbusinessexperience
Facebook: https://www.facebook.com/The-Small-Business-Experience-101691538462054
Twitter: https://twitter.com/TheSmallBizExp
LinkedIn: https://www.linkedin.com/company/70527961/admin/
Buzzsprout: https://thesmallbusinessexperience.buzzsprout.com