529 Plan Update for 2023

In this episode of "Protecting and Preserving Wealth," Bruce and Jon dive into a comprehensive discussion about the intricacies and nuances of 529 plans. These plans, designed to aid in saving for educational expenses, offer a range of benefits that extend beyond traditional college savings.

We highlight the potential tax advantages of 529 plans, one of which is an appealing opportunity for grandparents and parents to contribute and receive a tax deduction.  

Additionally, distributions are tax and penalty-free for qualified educational expenses. The discussion delves into the array of expenses that qualify for these distributions, including college-related costs such as tuition, books, and fees and additional expenses such as computers, internet access, and even K-12 education.

They clarify that the earnings on 529 plans used for non-qualified expenses are subject to income tax and a 10% penalty, but the original contributions are not. However, due to the flexibility of these plans, you should rarely have to pay these penalties.  

Expanding also on the rules and regulations surrounding 529 plans, such as rollover limitations, investment changes, and beneficiary changes. And examining the recent Secure Act 2.0 reveals new opportunities for 529 plans, for example, the potential to rollover to a Roth IRA for beneficiaries.

Listen in and join Bruce and Jon in this conversation, where Bruce underscores the versatility and advantages of 529 plans catering to various educational and financial scenarios.  

For those seeking more information or personalized guidance, Hosler Wealth Management can be contacted through their website at https://hoslerwm.com or by phone at 480-994-7342 (Scottsdale) or 928-778-7666 (Prescott). The episode offers a comprehensive exploration of 529 plans, revealing their potential to shape a secure educational future.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at [phone] or their Scottsdale office at [phone].

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