Have You Considered Opening a 529 College Savings Plan this Holiday Season?
- November 1, 2023
The holidays are a time for giving, and what better gift to give a child than the hope for a brighter future? By contributing to a 529 savings account, you can help them reach their educational savings goals and set them up for future financial success.
What is a 529 savings account?
A 529 savings account is a tax-advantaged college savings account. Contributions to a 529 account grow tax-free, and withdrawals are also tax-free if they are used for qualified education expenses, such as tuition, fees, books, and room and board.
Key considerations of a 529:
- Reducing Taxes
- Contributions to 529 accounts grow tax-free, and withdrawals are also tax-free if they are used for qualified education expenses.
- Starting Early
- The earlier you start saving for college, the more time your money has to grow. Even small contributions can add up over time.
- Flexibility
- 529 accounts can be used to pay for qualified education expenses at any accredited college or university in the United States.
- Once you have opened a 529 account, you can contribute money at any time. You can make one-time contributions or set up recurring contributions. You can also give a gift of money to a child's 529 savings account.
- Confidence
- Knowing that you are helping your child save for college can give you confidence and help them avoid student loan debt.
Do you have questions about contributing to a child's 529 savings account?
Contributing to a child's 529 savings account is easy. Most states have their own 529 plans, and you can choose the plan that is best for you. You can open a 529 account online or over the phone.
Please contact an Oppenheimer Financial Professional to discuss the choices that you have and what approach best suits your circumstances.
Interested? Click here to learn more about how you can invest in a child’s education.
DISCLOSURE
Before buying a 529 Plan, you should find out about the particular plan you are considering. Request an offering circular or official statement, which contains pertinent details such as objectives, risks and fees, from your Financial Advisor. Please read it carefully before investing or sending money. Many states offer favorable tax treatment or other valuable benefits to their residents in connection with investments in their own 529 College Savings plan. 529 College Savings plan offered by each state differ significantly in features and benefits. The optimal plan for you as an investor depends on your individual objectives and circumstances. In comparing plans, each investor should consider each plans investment options, fees and state tax implications, out of state 529 plans may not have the same tax benefits as those offered to in state residents.
Qualified expenses include tuition, fees, room and board, books and other supplies. Distributions may be subject to certain state taxes. For non-qualified expenses a 10% federal mandated penalty on the earnings withdrawn will apply.
The presentation is intended for informational purposes only. The information provided herein is general in nature and should not be construed as a recommendation or an offer or solicitation to buy or sell any securities nor does it represent legal or tax advice. Oppenheimer & Co. Inc., nor any of its employees or affiliates, does not provide legal or tax advice. However, your Oppenheimer Financial Advisor will work with clients, their attorneys and their tax professionals to help ensure all of their needs are met and properly executed.
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