Institute

Saving for College

 

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With the 529 College Savings Plan, we help you plan for your child's future.  

 

Planning for college is a major financial investment, and with the cost of education being higher than ever, taking care of your finances and saving smarter becomes more important than ever.

 

One of the best ways to do so is with the 529 College Savings Plan...

 

 But what is a 529 College Savings Plan?

 

The Oregon College Savings Plan is a 529 savings account that has special tax advantages to help people save for educational expenses like tuition, computers, supplies and more. It is designed to help people in (and outside) of Oregon save for education, no matter their budget or timeline.

 

By using a 529 College Savings Plan, you can begin taking advantage of federal and state tax benefits, high contribution limits, and unlimited participation. Use your funds for tuition and other qualified expenses at eligible schools nationwide and abroad, you can even create your own gifting postcards for easy contributions from friends and family!

What is a 529 College Savings Plan?

 

  • The Oregon College Savings Plan is a 529 savings account that has special tax advantages to help people save for educational expenses like tuition, computers, supplies and more.

  • The Oregon College Savings Plan is designed to help people in (and outside of) Oregon save for education, no matter their budget or timeline.

  • The Oregon College Savings Plan is a state-sponsored 529 plan that comes with special tax advantages and can be opened by just about anyone — parents, family, friends, even future students. The money saved in the Oregon College Savings Plan grows tax-free and can be used for qualified expenses like tuition, books, room and board, computers, and more. It’s never too early or too late to start saving. Every dollar counts!

Why Choose It?

 

  • Save more with federal and state tax benefits

  • Benefit from our low fees, smart investment options and simple account management

  • Use your funds for tuition and other qualified expenses at eligible schools nationwide and abroad

  • Create your own gifting postcards for easy contributions from friends and family

State Tax Advantage

State tax advantages: Oregon 2020: "Progressive" credit system

  • Maximum Tax credit is $300, the more income you make the more you must contribute to get the full credit. At $60,000/year you would need to contribute $600 to get the State’s $300 credit.

  • In my option this incentivizes family member contributions.

Advantages

Federal Tax Advantages 

 

Contributions to a 529 account accumulate tax deferred and earnings are tax free if the money is used to pay the beneficiary's qualified education expenses.

Wide Use of Funds 

 

Money in a 529 savings plan can be used to pay the full cost (tuition, fees, room and board, books) at any college or graduate school in the United States or abroad that is accredited by the Department of Education, and for K-12 tuition expenses up to $10,000 per ye

High Contribution Limits 

 

Most plans have lifetime contribution limits of $350,000 and up (limits vary by state).

Unlimited Participation 

 

Anyone can open a 529 savings plan account, regardless of income level.

Professional Money Management 

 

529 savings plans are offered by states, but they are managed by designated financial companies who are responsible for managing the plan's underlying investment portfolios.

Flexibility 

 

Under federal rules, you are entitled to change the beneficiary of your account to a qualified family member at any time as well as roll over (transfer) the money in your account to a different 529 plan once per calendar year without income tax or penalty implications.

Accelerated Gifting 

 

529 savings plans offer an estate planning advantage in the form of accelerated gifting. This can be a favorable way for grandparents to contribute to their grandchildren's education while paring down their own estate, or a way for parents to contribute a large lump sum. Under special rules unique to 529 plans, a lump-sum gift of up to five times the annual gift tax exclusion amount ($15,000 in 2020) is allowed in a single year, which means that individuals can make a lump-sum gift of up to $75,000 and married couples can gift up to $150,000. No gift tax will be owed, provided the gift is treated as having been made in equal installments over a five-year period and no other gifts are made to that beneficiary during the five years.

Transfer to ABLE account 

 

529 account owners can roll over (transfer) funds from a 529 account to an ABLE account without federal tax consequences. An ABLE account is a tax-advantaged account that can be used to save for disability-related expenses for individuals who become blind or disabled before age 26.

Have Questions?

TODD MANN FINANCIAL SERVICES INC. 
1840 5th St. Springfield, OR 97477.  

(O) 541-583-0093

Todd@ToddMannFinancialServices.com

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TODD MANN FINANCIAL SERVICES INC. 
1840 5th St. Springfield, OR 97477  |  (O) 541-583-0093  |  Todd@ToddMannFinancialServices.com


Securities offered through D.H. Hill Securities, LLLP, Member FINRA/SIPC.  D.H. Hill Securities, LLLP, Todd Mann Financial Services, and Belpointe Asset Management, LLC are not affiliated entities.

 

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