529 Plans Kure Beach, North Carolina: Investing in Your Child's Future Education

As a parent, one of the most important decisions you can make is investing in your child's education. With the rising costs of higher education, it's essential to start planning early to ensure that your child has the resources they need to succeed. One of the best ways to do this is through a 529 plan, a tax-advantaged savings plan designed to help families save for higher education expenses.

At Wealth Preservation Associates, we can help you create a personalized financial plan that includes a 529 plan. Our experienced financial advisors will work with you to understand your unique circumstances and create a distinctive plan that provides a roadmap for your financial journey.

What is a 529 Plan?

A 529 plan is a type of savings plan that allows you to save for higher education expenses while enjoying tax benefits. These plans are named after Section 529 of the Internal Revenue Code and are administered by the 50 states and the District of Columbia. There are two main types of 529 plans: educational savings plans and prepaid tuition plans.

Benefits of 529 Plans

Tax Advantages: Contributions to a 529 plan grow tax-deferred, and withdrawals are tax-free if used for qualified education expenses. This means that you won't have to pay federal or state income taxes on the earnings from your investments.

Flexibility: 529 plans can be used to pay for a wide range of qualified education expenses, including tuition, fees, and room, and board at accredited colleges, universities, and vocational schools. They can also be used for K-12 education expenses and apprenticeship programs.

High Contribution Limits: The contribution limit for 529 plans is higher in 2024, allowing parents to gift up to $18,000 (or $36,000 for married couples) per child without impacting their lifetime gift tax exemption.

New Roth IRA Rollover Rules: Effective from 2024, families can seamlessly transfer unused 529 plan funds to the account beneficiary's Roth IRA, free of income taxes and penalties, as long as the 529 plan has been operational for at least 15 years.

Grandparent Loophole: The SECURE Act of 2019 and the SECURE 2.0 Act of 2022 have made 529 plans even more versatile, allowing grandparents to fund their grandchildren's college education without affecting their financial aid eligibility.

How to Choose a 529 Plan

When choosing a 529 plan, it's essential to consider the following factors:

Fees: Look for plans with low fees and no sales charges.
Investment Options: Choose a plan that offers a range of investment options, including age-based portfolios and individual investment portfolios.
State Tax Benefits: Consider plans that offer state tax deductions or credits for contributions.
Performance: Review the plan's investment performance and compare it to other plans.

Recent Statistics on 529 Plans

As of 2023, there were 16.25 million active 529 accounts in the United States, with total savings of $450.5 billion.
The average account balance in mid-2023 was $27,741, up 110.4% from 2009.
38% of parents were aware of 529 plans in 2019, and 30% of families use a college savings fund, such as a 529 plan, to save for higher education expenses.

What is Wealth Preservation Associates?

→ At Wealth Preservation Associates, our primary concentration revolves around developing retirement strategies tailored to individuals who are either already retired or those who have imminent retirement plans.

Our clients take precedence, driving us to deeply comprehend your specific situation. Subsequently, we craft a personalized blueprint that guides you through your financial path.

Our Services:

- Wealth management

- Retirement Planning

- Estate Planning

- 529 Planning

→ Call us at 910-477-6102

Last Word

Estate planning in Kure Beach, North Carolina, requires careful consideration of your assets, family situation, and long-term goals. By taking proactive steps to create a comprehensive estate plan, you can protect your wealth, provide for your loved ones, and leave a lasting legacy in this beautiful coastal community.

Remember, estate planning is a personal process, and what works for one family may not be the best solution for another. That's why it's crucial to work with experienced professionals who can guide you through the process and help you make informed decisions.

Ready to start securing your legacy in Kure Beach? Contact Wealth Preservation Associates today to learn how their expert team can help you create a comprehensive estate plan tailored to your unique needs and goals.