Saving for college the tax free way with a 529 plan.
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- Опубліковано 15 лип 2024
- Saving for college can be a challenge with a traditional savings or investment account since a significant portion of the earnings on the account is eaten up in taxes on the investment income. A 529 Plan (known officially as a Qualified Tuition Program), allows you to put money aside and generate tax-free earnings for future education.
This video goes over what a 529 Plan is, how it works, and pitfalls to avoid to get the maximum benefit out of the plan.
0:00 Introduction
0:43 What are 529 Plans?
1:43 How 529 Plans work
3:52 529 Plan distributions
5:44 Plan strategies
6:59 Conclusion
If you'd like a refresher as to how a Roth IRA works, click here: • A guide to Roth IRAs
To learn more about the American Opportunity Credit, click here: • The American Opportuni...
Resources and additional information:
IRS Publication 970: "Tax Benefits for Education": www.irs.gov/pub/irs-pdf/p970.pdf
IRS Form 1099Q: "Payments From Qualified Education Programs": www.irs.gov/pub/irs-pdf/f1099...
finaid.org: "Section 529 Plans": www.finaid.org/savings/529plans/
finaid.org: "State Section 529 Deductions": www.finaid.org/savings/state5...
The Tax Geek on the Site Formerly Known as Twitter: @taxgeekusa
The Tax Geek on Reddit: www.reddit.com/r/askataxgeek
Image and footage credits:
Storyblocks.com
Wikimedia Commons
The images of the "owner" and her "beneficiaries" were generated by thispersondoesnotexist.com (stability.ai) and any resemblance between these images and any person, living or dead, is coincidental and not intentional.
NO OTHER ARTIFICIAL INTELLIGENCE WAS USED TO WRITE, EDIT, ANIMATE, VOICE, OR EDIT THIS VIDEO
Intro Music: "Bluesy Vibes" - Doug Maxwell - UA-cam Creator Music
Outro Music: "Modern Attempt" - Track Tribe under license from UA-cam Creator Music
DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.
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Hooray for Secure Act and The Tax Geek! Best tax videos on earth!
*blush*
I didnt know you could convert the balance of a QTIP to a Roth IRA. I really love these pockets of info you through into the mix! Another video well worth the wait
Being able to convert a 529 account into a Roth IRA is new for this year so it's not widely disseminated. Thanks as always for your support of the channel.
Hey awesome! Will give you more suggestions 😉😉. Estrella-
Thanks!
Hi me again😂. Video on backdoor IRA. Estrella -
I presume you mean a "backdoor Roth." I've added it to the list!
@@TheTaxGeek Yes....