#529 QUALIFIED EXPENSES HOW TO#

Note that I wrote “educational expenses,” not just “college expenses,” because there were recently some regulatory changes that now allow you to use 529 funds for qualified K-12 schools (up to $10,000 per year, per child) as well as some other things like student loans (up to a $10,000 lifetime maximum). When talking with clients about planning for college, the conversation usually starts with college savings plans, specifically the “529 plan.” A 529 plan is a tax-advantaged investment and savings plan designed specifically for educational expenses. You can find help choosing a career path, applying for and paying for college, or applying for financial aid and scholarships. As an initial note, North Carolina’s college planning website, College Foundation of North Carolina (or CFNC), has many great resources to help you and/or your child plan for college. For now, I’m going to focus on the financial side.

#529 QUALIFIED EXPENSES HOW TO#

There are a lot of factors that go into planning for college, from finding the best cultural fit for you/your student to figuring out how to pay for it all.

The school year has ended in New Hanover County, and many recent high school graduates are getting excited about their fall plans, whether it’s attending a university, community college, or trade school. For this article I wanted to take a break from talking about recessions, inflation, and market volatility, in favor of a more encouraging topic: planning for the financial well-being of the next generation.

529 qualified expenses