529 Savings Plan

They're Growing Faster Than You Think...

Your kids may not exactly be looking into colleges yet, but they’re growing up faster than you think. Before you know it, they’ll be tearing open acceptance letters for their (very expensive) colleges of choice. Start saving now and you may be able to lessen the financial stress that could come on that day. It might seem impossible to save, especially if you’re still paying off your own student loan debt, but a 529 Plan could help.

529 Plans are savings plans that can help families save for higher education costs. 

How It Works

Federal & State Tax Benefits: Plan participants can expect tax breaks (Indiana’s income tax credit is 20% of contributions up to $1,000 credit per year) so your investments may grow more quickly than in a savings account. Until you make withdrawals, you won’t receive a Form 1099 to report taxable or nontaxable earnings. For specific tax advice, please contact a tax professional.

Anyone Can Open or Contribute: Any U.S. citizen or resident alien, 18 or older, can open an account—regardless of income.  Parents, grandparents, other family, and friends can open an account for anyone they choose. You can even set one up for yourself!

Substantial Deposits Allowed: Typically, there are no age or income restrictions. Once the aggregated contributions for a beneficiary reach $298,770, the account may continue to grow higher through investment earnings only. There may be gift or tax consequences if a contribution exceeds $14,000 annually. Please consult a tax professional for additional information.

Student Can Attend Any College Nationwide: Assets can be used toward the costs of nearly any public or private, 2-year or 4-year U.S.-accredited college, university, or technical school nationwide - as long as the school is eligible to participate in U.S. Department of Education student financial aid programs. 

You’re in Control: As the custodian of the 529 plan, you’re in total control of the account funds.

Low Maintenance: Start a plan for as little as $25. Make contributions of $25 or more—or set up automatic deposits – and know the plan assets are professionally managed by the state treasurer’s office or an outside investment company.

Flexible: Once every 12 months, you can roll over the funds into a new 529 savings plan option, tax-free, for the beneficiary or even a member of the beneficiary’s family.

How 3Rivers Can Help

Sound like you could benefit from a 529 Plan? 3Rivers can help! Our CFS financial advisors are more than happy to meet with you and discuss saving for college more in-depth and help you determine the right savings option for you and your family. Get in touch with us anytime to set up an appointment by phone at 260.487.3348, or by email. If by email, please provide your prefered method of contact and when the best time to contact you.

Note: Electronic mail (email) is not secure. Any confidential or sensitive personal/business information should not be communicated in this manner.

 

 

Investments through CFS*
* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members. ClearFuture Financial is a trade name for the investment & insurance products available at 3Rivers Federal Credit Union.
*Investors should consider investment objectives, risks, and charges associated with Section 529 plans prior to investing. Contact your investment representative or carrier for more information about municipal fund securities which is available in the issuer’s official statement or plan disclosure document which should be read carefully prior to investing. Most 529 plans are sponsored and administered by states. State tax benefits vary among the states, and some offer residents additional tax benefits if they invest in their own state plan. Consult your tax adviser for more information.