529 Plans Help More Americans Prioritize Colleges Savings in Financial Planning | Law Firm Newswire

529 Plans Help More Americans Prioritize Colleges Savings in Financial Planning

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) November 13, 2014 – Parents and grandparents who want to incorporate college savings into their financial planning can do so with a 529 college savings plan, a special savings account designed for higher education expenses.

“In this era of ever-rising tuition, college savings should take higher priority than in the past,” said Andrew Hook, an estate planning attorney in Franklin, Virginia. “A 529 plan can be a part of that financial planning.”

A 529 savings account allows account holders to save money over time, then withdraw from the balance tax-free for education-related expenses. Qualified educational expenses include tuition, fees, books, room and board, and required supplies.

There is no minimum contribution, so families can save more when they are able and less during lean years. In Virginia, residents who contribute to a Virginia 529 plan can deduct up to $4,000 from their state income tax return.

After setting up a 529 savings account, account holders should work out an investment and savings plan. Often, it is beneficial to choose a plan with simple investment options, which can make choosing and sticking with an investment method effortless.

Families might begin by saving small amounts from cash or debit purchases each week. This can be an especially strong technique for those who feel unable to start by dedicating a lump sum each month. Alternatively, families could set an automatic deposit for the account each month. The deposit should be within budget so that it will be manageable even in lean months.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • Assuming Roles of Trustee and Power of Attorney
    Your loved one has lost capacity and you are named in their Power of Attorney and/or Trust – Now what? If you are fortunate, your loved ones have done their estate planning and put documents in place to enable a trusted person to assume the management of their financial affairs in the event of their […]
  • The Effect of Annuities on Long-Term Care Plans
    Annuities are great investments for people who are frightened by the stock market or need a tax-deferred investment, and they have long been used to ensure a guaranteed income in retirement. In simple terms, an annuity is a contract with an insurance company whereby the purchaser pays a certain amount of money and the insurance […]
  • What Happens to My Online Accounts After I Die?
    In today’s world, many people connect with friends and family via social media more than they do in “real life.” Additionally, online shopping has expanded vastly in the past several years, and most people have several online accounts they use regularly. While the Internet has allowed us to have more connections and to conduct business […]
  • Impeaching Wills
    We often hear from family members who are unhappy with the terms of a loved one’s current Will. The issue is often laced with problematic family dynamics where multiple people claim undue influence or lack of capacity. This intricate web of issues can lead to expensive litigation. As an attorney, the most important factor when […]
  • Is That Really Enough to Retire?
    A recent study by the Associated Press NORC Center for Public Affairs research found that almost 40% of Americans feel confident in their retirement savings. This appears to be a positive statistic given that 10,000 Americans reach 65, traditional retirement age, every day. However, some experts argue that the confidence may be faulty, or, may […]

See other news sources publishing this article. BETA | Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required