The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs

Episode 107 of The College Savings Podcast with Fexingo dives into one of the most practical 529 updates in years: using leftover 529 funds to pay down a beneficiary's student loans, up to a lifetime limit of $10,000 per beneficiary. Lucas and Luna explain the rule's history from the SECURE Act of 2019, walk through a real example of a graduate with $28,000 in federal loans, and discuss the tax implications for both the account owner and the beneficiary. They also cover state-by-state variations — like Arizona and Kansas that mirror the federal treatment, versus others like California that still tax the distribution. If you have a 529 plan that's overfunded or a child graduating with debt, this episode gives you a concrete strategy to stretch your savings further without triggering penalties. Perfect for parents and grandparents managing multi-beneficiary plans.

#529Plan #StudentLoanRepayment #CollegeSavings #SECUREAct #EducationFunding #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #TaxPlanning #StudentDebt #LifetimeLimit #Beneficiary #IRS #QualifiedDistribution #Overfunded529 #GrandparentGifting #FinancialLiteracy

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Episode 106 of The College Savings Podcast dives into the specifics of using 529 plans for graduate school tuition. Lucas and Luna break down the difference between qualified and non-qualified expenses for master's, PhD, and professional degree programs, using concrete examples like MBA tuition caps and medical school fees. They discuss the 10,000 annual limit for K-12 but no cap for higher education, the impact of tax deductions depending on state, and a savvy strategy for grandparents to avoid financial aid penalties. The hosts also tackle the risk of overfunding a 529 and options like changing beneficiaries or taking a non-qualified withdrawal. Perfect for parents planning for their child's advanced degrees or considering saving beyond undergrad.

#529Plan #GraduateSchool #CollegeSavings #GraduateTuition #MBA #PhD #MedSchool #LawSchool #FinancialAid #Fafsa #QualifiedExpenses #NonQualifiedWithdrawal #Grandparent529 #BeneficiaryChange #Fexingo #FexingoBusiness #BusinessPodcast #Finance

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Episode 105 of The College Savings Podcast. Lucas and Luna explore a powerful but overlooked angle: using a 529 plan to fund the first two years at a community college before transferring to a four-year university. They break down the numbers on tuition savings, the rules around room and board, and how the strategy works with the American Opportunity Tax Credit. Lucas shares data on how one student saved over $40,000 by starting at a community college and then transferring to the University of Virginia. They also discuss common pitfalls like excess refunds and timing of distributions. A must-listen for parents planning a cost-efficient path to a bachelor's degree.

#529Plans #CommunityCollege #TransferStudents #CollegeSavings #EducationFunding #TuitionStrategy #FinancialAid #AmericanOpportunityTaxCredit #RoomAndBoard #StudentLoans #UniversityOfVirginia #CostSaving #FamilyFinance #CollegePlanning #FexingoBusiness #BusinessPodcast #TheCollegeSavingsPodcast #PersonalFinance

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Episode 104 of The College Savings Podcast uncovers a costly mistake families make when paying for room and board with 529 funds. Lucas and Luna explain the 'qualified housing' rule, the receipt trap, and how the off-campus housing allowance must match the college's official cost of attendance (COA). They walk through a real case: a family in Texas who withdrew $18,000 for an off-campus apartment, only to discover at tax time that $3,000 was non-qualified — triggering a 10% penalty plus income tax. The hosts share practical tips: always check the COA on your student's account portal, use direct payments to the school when possible, and keep detailed rent receipts. This episode also covers the rarely discussed 'room and board double-dip' and how scholarships can affect your 529 withdrawal strategy. A must-listen for parents funding higher education expenses beyond tuition.

#529 #529Plan #CollegeSavings #RoomAndBoard #QualifiedExpenses #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #EducationFunding #StudentHousing #TaxPenalty #CostOfAttendance #IRAand529 #OffCampusHousing #Receipts #IRS #SavingForCollege

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Episode 103 of The College Savings Podcast breaks down a lesser-known use of 529 plans: funding registered apprenticeships and trade school programs that combine classroom instruction with on-the-job training. Lucas and Luna walk through the specific IRS rules that allow 529 funds to cover tuition, fees, materials, and even tools for apprenticeships in fields like electrical, plumbing, HVAC, and carpentry. They focus on the National Apprenticeship Act and how recent updates have expanded qualified expenses to include equipment like toolkits and safety gear. The hosts also compare the cost of a four-year degree versus an apprenticeship pathway, using real data from the Department of Labor showing median starting wages around $60,000 for apprenticeship graduates versus $55,000 for bachelor's degree holders. A must-listen for parents exploring alternative postsecondary routes that don't require a traditional college degree.

#529Plans #CollegeSavings #Apprenticeship #TradeSchool #VocationalEducation #SkilledTrades #FinancialPlanning #EducationFunding #StudentCosts #IRS #TaxAdvantaged #Parenting #CareerPathways #FexingoBusiness #BusinessPodcast #Finance #HigherEd #ApprenticeshipUSA

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In this episode of The College Savings Podcast, Lucas and Luna explore how 529 plans can be used to fund your child's study abroad program. They break down the specific rules: which programs qualify, what expenses count (tuition, room and board, airfare, insurance), and how to handle foreign currency and exchange rates. The hosts walk through a concrete example of a student spending a semester at the University of Sydney through an accredited U.S. program. They clarify what happens if the program is not affiliated with a U.S. institution and how to document expenses for IRS purposes. The episode also covers recent changes under the Tax Cuts and Jobs Act that expanded 529 usage for study abroad. By the end, listeners will know exactly how to plan ahead and maximize tax-free withdrawals for an international education experience.

#529Plan #StudyAbroad #CollegeSavings #EducationFunding #TaxAdvantaged #IRS #QualifiedExpenses #InternationalStudy #UniversityOfSydney #RoomAndBoard #Airfare #StudentInsurance #TaxCutsAndJobsAct #ForeignCurrency #ExpenseDocumentation #FexingoBusiness #BusinessPodcast #PersonalFinance

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Lucas and Luna explore how 529 plans can fund vocational and technical school tuition, from HVAC training to dental hygienist programs. They highlight the 2026 contribution limits, the difference between eligible and non-eligible programs, and a real-world example of a family using a 529 for a pipefitting apprenticeship. Learn how to verify program eligibility and avoid common pitfalls like using funds for non-qualified living expenses. Tune in for practical guidance on maximizing your education savings for non-traditional paths.

#529Plan #VocationalSchool #TradeSchool #EducationFunding #CollegeSavings #HVAC #Pipefitting #DentalHygienist #Apprenticeship #QualifiedExpenses #ContributionLimits #IRS #Fexingo #BusinessPodcast #Finance #PersonalFinance #Savings #FuturePlanning

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Episode 100 of The College Savings Podcast tackles a question that trips up many families: How do 529 plan contributions interact with the federal gift tax? Hosts Lucas and Luna break down the annual gift tax exclusion — currently $18,000 per person per beneficiary — and explain the special five-year election that lets grandparents front-load up to $90,000 without filing a gift tax return. They walk through real scenarios: a couple contributing for a grandchild, the impact on Medicaid and estate planning, and why the Kiddie Tax still matters for investment accounts. The conversation also covers state-level deductions, the difference between gifting to a 529 versus a custodial account, and practical tips for splitting contributions across multiple beneficiaries. If you have ever wondered whether you can really stuff $90,000 into a grandchild's 529 in one year or how to avoid accidentally triggering a tax form, this episode delivers the answers.

#529Plan #GiftTax #GrandparentContributions #AnnualExclusion #FiveYearElection #EstatePlanning #KiddieTax #CollegeSavings #EducationFunding #GiftTaxReturn #IRS #Fexingo #TheCollegeSavingsPodcast #BusinessPodcast #Finance #PersonalFinance #TaxPlanning #GenerationalWealth

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In this episode, Lucas and Luna break down the often-overlooked rules around changing the beneficiary on a 529 college savings plan. Using a real-world example of a family in Virginia whose older child received a full scholarship, they explain the tax implications, potential gift tax consequences, and how the SECURE Act expanded options. They also clarify the difference between a beneficiary change and a rollover, and warn about common pitfalls like the generation-skipping transfer tax. A must-listen for any family managing multiple children's education funds or considering transferring assets to a grandchild.

#529Plan #CollegeSavings #BeneficiaryChange #SECUREAct #GiftTax #GenerationSkippingTransferTax #EducationFunding #FinancialPlanning #TaxRules #IRS #Virginia529 #Scholarship #FamilyFinance #StudentLoans #UGMA #UTMA #FexingoBusiness #BusinessPodcast

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Episode 98 of The College Savings Podcast tackles a practical question: can you use 529 plan funds to pay for your child's dorm room or off-campus apartment? Lucas and Luna break down the IRS rules on qualified room and board expenses, how the cost of attendance at a college sets the ceiling, and why paying rent directly to a landlord works differently than paying the school's housing bill. They walk through a concrete example using the University of Michigan's 2025-2026 cost of attendance figures and discuss common pitfalls like over-withdrawing or using receipts for groceries. By the end, you'll know exactly how to reimburse yourself from a 529 for housing costs without triggering taxes or penalties.

#529Plan #RoomAndBoard #CollegeHousing #DormRoom #OffCampusHousing #CostOfAttendance #CollegeSavings #EducationFunding #QualifiedExpenses #IRS #Section529 #UniversityOfMichigan #FexingoBusiness #BusinessPodcast #PersonalFinance #StudentHousing #TaxFreeWithdrawal #CollegeCosts

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