Discover the ins and outs of 529 accounts, from smart spending strategies to tax implications. Learn how to manage education costs effectively while balancing loans and savings. Hear insights on navigating student loans as payment pauses end. One listener shares an inspiring effort to boost financial literacy among dental students. Plus, find out how political influences can impact personal finance planning. It's all about simplifying finances for long-term success and building wealth.
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Personal 529 Spending System
James Dahle manages eight 529s for nieces, nephews, and his children and actively spends them down as students incur eligible expenses.
He logs transfers, collects emailed receipts, and files them labeled for tax year audits.
volunteer_activism ADVICE
Match Withdrawals To Same-Year Receipts
You must match every 529 withdrawal to receipts for expenses incurred in the same tax year or face taxes and penalties.
It's simplest to withdraw when the expense occurs rather than waiting until year-end.
volunteer_activism ADVICE
Use 529 Funds Before Other Sources
Encourage students to use 529 funds first for eligible expenses so the account is empty when education ends.
If overfunded and no grad school planned, consider changing the beneficiary or using the Roth transfer options.
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Today we are talking about 529 accounts and how to invest them as well as how to spend them down. There are a lot of ways to help fund your children's education. Most families use a combination of 529 accounts, loans, other savings and cash flow. If you have access to a 529 account it is generally recommended to spend that down before moving to other forms of funding. In addition to discussing ways to help pay for college we answer a question about when, or if the political climate should ever cause you to change your financial plan.
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00:00 WCI Podcast #432 02:44 How to Spend Well on College 14:18 529s Beneficiaries & Gift Taxes 19:17 Student Loan Options 25:55 Promoting Financial Literacy 32:32 WCI's Political Stance 33:48 Politics & Your Investing Plan
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