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College Planning

Anyone can open a 529 plan.  Investments inside your 529 plan can grow tax-free and gains are never taxed when the money is used for qualified education expenses.

Lifetime contribution limits can be $350,000 or more.  The limits for what you can invest in a 529 are very large.

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Use the investment to pay for almost all college expenses.  The investment can be used to pay for tuition, fees, books, room and board at any college or graduate school accredited by the U.S. Department of Education.

Low effect on your FAFSA.  The effect on the FAFSA is a maximum of 5.6% of the 529 account balance. 

You can use the 529 plan to pay for K-12 expenses.   Up to $10,000 per year can be used to pay for K-12 expenses like private school tuition.

You can change the beneficiary easily.  Did your oldest son get a full scholarship to college?  You can make another child the beneficiary of his 529 plan.

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Participation in a 529 College Savings Plan (529 Plan) does not guarantee that contributions and investment return on contributions, if any, will be adequate to cover future tuition and other education expenses or that a beneficiary will be admitted to or permitted to continue to attend an educational institution,  Contributors to the program assume all investment risk, including potential loss of principal and liability for penalties such as those levied for non-educational withdrawals.  

An investor should consider, before investing, whether the investor's or designated beneficiary's home state offers any favorable state tax treatment or other state benefits such as financial aid, scholarship funds, and protection form creditors that are only available for investments in such state's qualified tuition program.  Consult with your financial, tax, or other adviser to learn more about how state'based benefits (including and limitations) would apply to your specific circumstances.  You may also wish to contact your home state or any other 529 college savings plan to learn more about the features, benefits, and limitations of that state's 529 college savings plan.  Furthermore, the Tax Cuts and Jobs Act that was signed into law on December 22, 2017 allows for up to $10,000 a year per beneficiary in tax free distributions from a 529 Plan if used for tuition incurred for enrollment or attendance at a public, private, or religious elementary or secondary school.  Check with your state's guidelines prior to withdrawing the funds.  For more complete information, including a description of fees, expenses, and risks, see the offering statement or program description.

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