• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

Back to School: Why Parents Should Know About 529 Savings Accounts

samrack by samrack
November 25, 2015
in Africa, Diaspora, Education, Kenya, Kenya Diaspora News, News
A A
0
Back to School: Why Parents Should Know About 529 Savings Accounts
Share this
FacebookTwitterPinterestEmailWhatsAppLinkedIn

Back to School: Why Parents Should Know About 529 Savings Accounts

What Is a 529 Plan?

Before you open an account, get the facts on this tax-advantaged college savings option.

529 Plan Overview

A 529 plan is a college savings plan sponsored by a state or state agency.

Savings can be used for tuition, books, and other education-related expenses at most accredited two- and four-year colleges and universities, U.S. vocational-technical schools, and eligible foreign institutions.

U.S. residents of any state, who are 18 years of age or older (or the age of majority in some states), may invest in most state plans.

Tax advantages

Any earnings grow federal income tax deferred and may also be eligible for state tax deductions.

Distributions for qualified higher education expenses are federal income tax free.

Investment options

The 529 plans managed by Fidelity offer a choice of investment options.

  • The Age-Based Strategy invests in portfolios that automatically become more conservative as the beneficiary nears college age. Fidelity offers three types: Fidelity Funds, Fidelity Index, or Multi-Firm.
  • The Custom Strategy allows you to allocate your assets among Static, Individual Fund, Age-Based, and Bank Deposit portfolios.

Learn more about investment options.

Who can open a 529 plan?

People of all income levels; there are no income restrictions.

Any U.S. resident who is 18 years or older, has a U.S. mailing and legal address, and a Social Security number or Tax ID

Who can be a beneficiary?

Anyone who has a Social Security number or Tax ID

A future college student of any age—the beneficiary can even be the same person who sets up the account.

Investing by grandparents and others

Grandparents or others who wish to contribute to a child’s college savings plan may want to open a 529 plan account.

The owner of the account, also known as the participant, controls the account, including investment decisions and the distribution of assets.

The account owner can take advantage of possible gift and estate tax benefits.

Grandparents, other relatives, or nonrelatives can also gift to an existing account. In fact, account owners can enroll in our free College Gifting program that provides a page for family and friends to easily contribute a gift electronically; plus a separate, private dashboard where the account owner can make edits, send invitations, track gifts, and more.

Gift and estate planning benefits

Contribute up to $70,000 ($140,000 per married couple) per beneficiary in a single year without the money being subject to the federal gift tax.*

Once assets are in the account, they are generally considered to be no longer part of the account owner’s estate.

Professional money management

Investors in Fidelity-managed 529 plans may benefit from Fidelity’s professional money management.

Depending on your investment choice, 529 portfolio assets may be invested entirely in Fidelity mutual funds, an interest-bearing bank deposit portfolio, or in funds managed by several different companies, including Fidelity.

Control of assets and distributions

The account owner maintains ownership of the account until the money is withdrawn.

Withdrawals from a 529 account can be taken at any time for any reason. However, if the money is not used for qualified higher education expenses, any earnings are subject to federal income taxes at the recipient’s rate. A 10% federal penalty tax and possibly state or local tax are also added.

If the beneficiary receives a scholarship or attends a U.S. military academy, the scholarship amount or cost of attendance can be withdrawn from the 529 plan account and the 10% federal penalty tax does not apply. However, the earnings are subject to any other applicable taxes, including federal income tax.

SOURCE:  FIDELITY

Tags: 529 Savings AccountsBack to School: Why Parents Should Know About 529 Savings AccountsFIDELITYWho can open a 529 plan?
Previous Post

Intercede for us, Kangemi residents tell Pope Francis

Next Post

#SomeoneTellFoxNews: Kenyans on Social Media Express Outrage over Fox News’ Story on Pope’s African Trip [VIDEO]

Related Posts

Michael Joseph’s Net Worth; Former Safaricom CEO & Chairman says he is not Rich
Kenya

Michael Joseph’s Net Worth; Former Safaricom CEO & Chairman says he is not Rich

August 8, 2022
Reports of eagle grabbing drone at Raila’s Kasarani rally fake
Diaspora

Reports of eagle grabbing drone at Raila’s Kasarani rally fake

August 8, 2022
IEBC chairman Wafula Chebukati addresses the press.
Diaspora

IEBC adheres to court order on manual register

August 8, 2022
ELECTION PREPARATION: IEBC chairman Wafula Chebukati addresses the media after a meeting with presidential candidates at Bomas of Kenya on May 23, 2022.
Diaspora

Activists want IEBC stopped from announcing results over forms 34A, 34B

August 8, 2022
Peris Mbaria invites you to her CD Launch Aug 21st 2022 at 4pm, NEEMA Church Lowell
Kenya

Peris Mbaria invites you to her CD Launch Aug 21st 2022 at 4pm, NEEMA Church Lowell

August 6, 2022
Dickson Macharia alias Deco after his arrest on Wednesday, August 3, 2022. Image: SCREEN GRAB
Kenya

August 4, 2022
Next Post
#SomeoneTellFoxNews: Kenyans on Social Media Express Outrage over Fox News’ Story on Pope’s African Trip [VIDEO]

#SomeoneTellFoxNews: Kenyans on Social Media Express Outrage over Fox News' Story on Pope's African Trip [VIDEO]

Please login to join discussion
AUGUST 21 2022 @ PCEA NEEMA CHURCH AUGUST 21 2022 @ PCEA NEEMA CHURCH AUGUST 21 2022 @ PCEA NEEMA CHURCH
Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply.
ADVERTISEMENT
ADVERTISEMENT

Latest News

Michael Joseph’s Net Worth; Former Safaricom CEO & Chairman says he is not Rich

Reports of eagle grabbing drone at Raila’s Kasarani rally fake

IEBC adheres to court order on manual register

Activists want IEBC stopped from announcing results over forms 34A, 34B

Peris Mbaria invites you to her CD Launch Aug 21st 2022 at 4pm, NEEMA Church Lowell

Fida: Siaya, Kisumu and Nairobi most unsafe counties for women

Ruto Videotaped Crying Uncontrollably During a Prayer Session

DPP highlights election offences to avoid on poll day

Court orders IEBC to use manual register to identify voters

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

Ruto Videotaped Crying Uncontrollably During a Prayer Session

Ruto Videotaped Crying Uncontrollably During a Prayer Session

by samrack
August 4, 2022
0

Ruto Videotaped Crying Uncontrollably During a Prayer Session An amateur video showing Deputy President William Ruto crying uncontrollably during a...

Court orders IEBC to use manual register to identify voters

Court orders IEBC to use manual register to identify voters

by samrack
August 4, 2022
0

Court orders IEBC to use manual register to identify voters •Justice Mugure said if the decision is allowed to remain...

  • About Us
  • Archives
  • SWG Registration

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 0.848 seconds. Stats plugin by www.blog.ca