Financial Focus 529 plans: Not just for college If you've heard of 529 plans, you might think they can only be used to help pay for college. And you wouldn'i be alone: Less than one-third of adults properly identified that a 529 plan can be used for more than just higher education, according to a sur- vey by Morning Consult and Edward Jones. But what 529 plans to repay student loans gives you some flex- complete their apprenticeships, they often go on to are these other expenses? Before we get to them, let's review the main benefits of 529 plans. Contribution limits are high and earnings can grow tax-free if withdrawals are used for qualified education expenses such as tuition private, public and religious elementary and sec- and room and board. (Withdrawals for nonqualified ondary schools. This amount is per student, not per distributions are subject to taxes and a 10% penalty on the earnings portion.) Plus, as the account owner, be used for K-12 expenses - or to be technical, some want to know the rules. Even if you don't move, it's you maintain control of the plan, so you can switch beneficiaries to another qualified family member, if people welcomed the news that 529 plans could be funds can be used to pay for apprenticeship pro- used to repay student loans. There's an aggregate lifetime limit of $10,000 in qualified student loan repayments per 529 plan beneficiary, plus S$10,000 for each of the beneficiary's siblings. Being able to use community colleges and trade schools. Once students grams registered with the U.S. Department of Labor. These types of programs, which combine on-the-job training with classroom instruction, are offered at ibility if your family members have excess balances in well-paying careers in a variety of fields. And since their accounts. K-12 expenses - A 529 plan can now be used to pay up to $10,000 per year in tuition expenses at these types of programs are typically far less expen- sive than a four-year college degree, a 529 plan can have a particularly long reach. The tax treatment of 529 plans for all these ex- penses can vary from state to state, so, if you move to another state after you've established your plan, you'll account. However, not all states allow 529 plans to states consider K-12 tuition to be a nonqualified 529 still a good idea to consult with your tax advisor plan expense, which means the earnings portion of a about how 529 plan withdrawals will be treated. 529 plan is subject to state income taxes and possibly a "recapture" of other state income tax breaks con- Nonetheless, a 529 plan could be valuable to you in many ways. Consider how you might want to put necessary. Now, lets consider the other uses of 529 plans, which have been made possible by various pieces of nected with 529 plan withdrawals. So, make sure you it to work for you and your family. legislation over the past few years: Student loan repayments - The average amount of student loan debt per borrower is well over $32,000, according to the Federal Reserve. So, many needs to attend a college or university. And now, 529 Edward Jones, Member SIPC understand your states rules on K-12 expenses before taking money out of your 529 plan. Apprenticeships Not every child wants or This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones Michael C. Caley AAMS Pam Covington CFP" AAMS Edward Jones Edward Jones Sean P. Asiala AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert Edward Jones Karen Rupert Financial Advisor 414 S. Scom Rd. Fort Wayne. IN 4E814 Financial Advisor Financial Advisor 7329 West Jetferson Blvd Fort Wayne. IN 46804 Financial Advisor Financial Advisor Financial Advisor 7030 Ponne inverness Way. Sute 125 Fort Wayne, IN 46804 432-3613 Making Sense of Investing Financial Advisor 7127 Homestead Rd, Suite C Fort Wayne, IN 46814 karenruperteedwerdjones.com 263-4760 Making Sense of Investing Financial Advisor 901 Chestrut Hils Parkway Fort Wayne, IN 46814 7525 West Jetferson Bivd. Fort Wayne, IN 46804 6525 Corstitution Dr. Fort Wayne. IN 40804 14413 linois Rd Ste Fort Wayne, IN 46814 625-5700 Making Sense of wvesting 432-0304 Making Sense of investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of Investing Financial Focus 529 plans: Not just for college If you've heard of 529 plans, you might think they can only be used to help pay for college. And you wouldn'i be alone: Less than one-third of adults properly identified that a 529 plan can be used for more than just higher education, according to a sur- vey by Morning Consult and Edward Jones. But what 529 plans to repay student loans gives you some flex- complete their apprenticeships, they often go on to are these other expenses? Before we get to them, let's review the main benefits of 529 plans. Contribution limits are high and earnings can grow tax-free if withdrawals are used for qualified education expenses such as tuition private, public and religious elementary and sec- and room and board. (Withdrawals for nonqualified ondary schools. This amount is per student, not per distributions are subject to taxes and a 10% penalty on the earnings portion.) Plus, as the account owner, be used for K-12 expenses - or to be technical, some want to know the rules. Even if you don't move, it's you maintain control of the plan, so you can switch beneficiaries to another qualified family member, if people welcomed the news that 529 plans could be funds can be used to pay for apprenticeship pro- used to repay student loans. There's an aggregate lifetime limit of $10,000 in qualified student loan repayments per 529 plan beneficiary, plus S$10,000 for each of the beneficiary's siblings. Being able to use community colleges and trade schools. Once students grams registered with the U.S. Department of Labor. These types of programs, which combine on-the-job training with classroom instruction, are offered at ibility if your family members have excess balances in well-paying careers in a variety of fields. And since their accounts. K-12 expenses - A 529 plan can now be used to pay up to $10,000 per year in tuition expenses at these types of programs are typically far less expen- sive than a four-year college degree, a 529 plan can have a particularly long reach. The tax treatment of 529 plans for all these ex- penses can vary from state to state, so, if you move to another state after you've established your plan, you'll account. However, not all states allow 529 plans to states consider K-12 tuition to be a nonqualified 529 still a good idea to consult with your tax advisor plan expense, which means the earnings portion of a about how 529 plan withdrawals will be treated. 529 plan is subject to state income taxes and possibly a "recapture" of other state income tax breaks con- Nonetheless, a 529 plan could be valuable to you in many ways. Consider how you might want to put necessary. Now, lets consider the other uses of 529 plans, which have been made possible by various pieces of nected with 529 plan withdrawals. So, make sure you it to work for you and your family. legislation over the past few years: Student loan repayments - The average amount of student loan debt per borrower is well over $32,000, according to the Federal Reserve. So, many needs to attend a college or university. And now, 529 Edward Jones, Member SIPC understand your states rules on K-12 expenses before taking money out of your 529 plan. Apprenticeships Not every child wants or This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones Michael C. Caley AAMS Pam Covington CFP" AAMS Edward Jones Edward Jones Sean P. Asiala AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert Edward Jones Karen Rupert Financial Advisor 414 S. Scom Rd. Fort Wayne. IN 4E814 Financial Advisor Financial Advisor 7329 West Jetferson Blvd Fort Wayne. IN 46804 Financial Advisor Financial Advisor Financial Advisor 7030 Ponne inverness Way. Sute 125 Fort Wayne, IN 46804 432-3613 Making Sense of Investing Financial Advisor 7127 Homestead Rd, Suite C Fort Wayne, IN 46814 karenruperteedwerdjones.com 263-4760 Making Sense of Investing Financial Advisor 901 Chestrut Hils Parkway Fort Wayne, IN 46814 7525 West Jetferson Bivd. Fort Wayne, IN 46804 6525 Corstitution Dr. Fort Wayne. IN 40804 14413 linois Rd Ste Fort Wayne, IN 46814 625-5700 Making Sense of wvesting 432-0304 Making Sense of investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of Investing