3039: Savings Tax Breaks for Middle America 529 Plans by Harry Stout of Financial Verse

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Business, Education, Self-improvement

4.4 • 1.3K Ratings

🗓️ 13 February 2025

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3039: Harry N. Stout explains the two types of 529 Plans, college savings plans and prepaid tuition plans, along with their benefits, potential drawbacks, and flexibility in case of changing circumstances. Understanding these plans can help families make informed financial decisions while balancing college savings with long-term financial security. Read along with the original article(s) here: https://www.financialverse.com/post/savings-tax-breaks-for-middle-america-529-plans Quotes to ponder: "Funds in a 529 Plan grow federal tax-free and will not be taxed when the money is withdrawn for qualified education expenses." "There are a myriad of situations that can arise in the future such as the death of a child, the receipt of full academic or athletic scholarships, or the receipt of employer educational assistance." "Your child can take out a loan for school, you however cannot take out a loan for your retirement." Episode references: Saving for College: https://www.savingforcollege.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	As a small business owner, my favourite thing about posting a job on LinkedIn is that when I hit send, I clock out and LinkedIn clocks in.
0:07.0	LinkedIn makes it easy to post your job for free. Get qualified candidates and manage them all in one place.
0:12.9	Plus, LinkedIn extends the reach of your job posts by allowing you to share it with your network.
0:17.7	And hiring managers that add a hiring frame to their LinkedIn profiles receive
0:22.0	two times more qualified applicants. Go to LinkedIn.com slash agree to post your job for free. Terms
0:28.3	and conditions apply. This is Optimal Finance Daily. Savings Tax Breaks for Middle America,
0:35.8	529 plans by Harry Stout of Financialverse.com.
0:40.9	This is the fourth and final installment of our series on savings breaks for middle-class Americans.
0:47.2	A 529 plan is a special incentive created by Congress to help families educate their children.
0:54.0	Let's learn more about this valuable
0:55.8	provision. A 529 college savings plan, or a 529 plan, is an investment account that offers
1:02.9	tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified
1:08.0	education expenses. The 529 plan can also have financial aid benefits.
1:13.7	529 plans may also be used to save and invest for up to $10,000 in annual kindergarten through
1:20.5	grade 12 tuition payments in addition to college costs. There are two types of 529 plans,
1:30.6	college savings plans and prepaid tuition plans. Almost every state offers at least one 529 plan. There is also a 529 plan operated by a group of
1:38.8	private colleges and universities. 529 plan tax benefits. Much like a Roth IRA, contributions to a 529 plan are made with
1:49.6	after-tax dollars and are not deductible for federal income taxes. However, the majority of
1:55.6	participating states offer state income tax deductions or tax credits for contributions to 529 plans,
2:03.2	though you may be restricted to investing in your home state's 529 plan in order to claim the benefit.
2:09.9	Funds in a 529 plan grow federal tax-free and will not be taxed when the money is withdrawn for
2:16.2	qualified education expenses.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Optimal Living Daily LLC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Optimal Living Daily LLC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.