benefits of the 529 college plan
For many this is a no brainer, but you should still consider the pluses and minuses before you start investing in your child’s future. If you are wondering what the heck a 529 College plan is, read further for the answers. A 529 College plan is a tax deferred savings plan for your kids education. These are very similar to a 401(k) savings plan often used for retirement. In this article (Florida 529 Plan) we will be covering the benefits of the 529 college plan, how the plans work, and some pluses and minuses to consider. However, if you take money out of a plan and don’t use it for eligible educational expenses, you usually will be subject to income tax and to a 10% federal tax penalty on earnings. Planning your finances is critical to avoid ending up in a situation where you will be penalized.
