529 Plan Article
Is Helping to Fund a College Education for your Children or Grandchildren one of your Goals?
By Will Johnston
First State Bank Investment Services*
If so, the Iowa Advisor 529 Plan could be a part of your solution.
Here are a few of the important benefits that the Iowa Advisors 529 Plan offers you and your beneficiaries:
- Anyone – including friends, grandparents, and other family members – may contribute to the plan.
- The beneficiary can be any age, live in any state, and go to school almost anywhere.
- Your Plan earnings grow free from federal and state income taxes.
- As much as $3,045 (for 2013, adjusted annually for inflation) per beneficiary account, per taxpayer, may be deducted from Iowa taxes.
- Withdrawals for qualified higher education expenses are free from federal and Iowa state income taxes.
- You may contribute as much as $13,000 per beneficiary each year ($26,000 if married, filing jointly) without incurring gift tax consequences. You can also choose a special election that allows you to treat $65,000 in contributions within a single year ($130,000 if married, filing jointly) as if they were made over a five-year period.
Stop in or give me a call if you would like to explore how the Iowa Advisor 529 Plan might fit into your plans!
Contact Will Johnston, First State Bank Investment Services *, located at First State Bank, 505 Second St, Webster City,515-832-2520 or 800-557-0520.
This general information was provided by “IAdvisor 529 Plan” and is not intended as tax advice. Please consult your legal or tax advisor about the impact of these rules on your individual situation. Investors should consider their investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer’s official statement and should be read carefully before investing.
*Securities and advisory services offered through Cetera Advisor Networks LLC, member FNIRA/SIPC. Investments are:
- Not FDIC/NCUSIF insured
- Not insured by any federal government agency
- Not a deposit
- Not financial institution guaranteed
- May lose value
Cetera is under separate ownership from any other named entity.
*All situations are different, please consult your financial professional for information regarding your needs and suitability issues." "An investor should consider the investment objectives, risks and charges and expenses associated with municipal fund securities(529 Plans) before investing. More information about municipal securities is available in the issuer’s official statement. The official statement should be read carefully before investing.