Jun 23

Higher Learning

During these uncertain times, 529 plans may make more sense than ever.

For many people, a 529 savings plan offers an opportunity to achieve an important life goal and improve overall financial health. As college and university administrators determine how higher education will look in the future (classes on campus, remote learning or a mix of both), the benefits of a 529 plan have never been more meaningful. Here are three benefits that are particularly important during these times  — especially as the cost of higher learning continues to rise.

  1. Not only can 529 plan assets be used to pay for tuition and books, they can also pay for computers, internet access and other equipment. This will be especially important if remote learning continues indefinitely.

The recently passed Setting Every Community Up for Retirement Enhancement (SECURE) Act expanded qualified expenses to include registered apprenticeship programs1 and repayment of college debt.

  1. Account owners have full control over 529 plan assets and can even be the beneficiary of their own account. This is a huge benefit for anyone looking to go back to school right now to advance their skills for the evolving work environment and new opportunities that may come with it.

 

529

Follow the money

Distributions from a 529 plan can be used to cover a long list of qualified education expenses at qualified institutions. Here’s a summary:


Qualified expenses


K-12

•  Tuition up to $10,000 per year per student


Postsecondary

•  Tuition and fees

•  Books, supplies and equipment required for enrollment or attendance

•  Room and board (on- or off-campus for students who are at least half time)

•  Computer peripheral equipment, software and internet access if used primarily by the beneficiary

•  Special needs services as required by beneficiaries in connection with enrollment or attendance

•  Fees, books, supplies and equipment required for participation in a registered apprenticeship program1


Types of eligible institutions

•  In-state or out-of-state colleges

•  Public and private schools

•  Vocational schools

•  Technical and trade schools

•  International higher education institutions

•  Any public, private or religious elementary or secondary school

•  Registered apprenticeship programs1

•  Repayment of principal/interest on any qualified education loan up to a $10,000 lifetime limit for the designated beneficiary

 

RP-691-1220 Tracking #1-05081374 (Exp. 12/21) 1Q 2021 Plan Participant Newsletter
1 Registered and certified with the U.S. Department of Labor.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com
©2021 Kmotion, Inc.
This is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
 
 

Recent Articles

Nov 04

Why Attempting To “Time the Market” is a Difficult Strategy

By Nikki Young, CFP®,  Financial Advisor

Market timing is an investment strategy in which investors move in and out of the markets to try to avoid losses before they happen and then buy back in at the bottom after the market has crashed. Buying low or selling high is a prudent strategy for most investors. However, buying lowest or selling highest — or trying to time the market perfectly — is an elusive strategy, one that is difficult to execute and may lead to lower returns and missed opportunities.

Nov 04

Old Annuity – Gold Mine or Money Pit?

By Todd Holden, Financial Advisor

Annuities are contracts between the annuity owner and an insurance company — nothing more, nothing less. Like any contract, they have terms. Sometimes, these terms turn out to favor the annuity owner, and a smart owner can use these terms to their advantage. Other times the contract terms favor the company, and the annuity owner should get out of the contract as quickly as possible. Below is an example of both:

 

Gold Mine