Switch to ADA Accessible Theme
Tampa Estate Planning Lawyer
Schedule an appointment
813-265-1185

529 Plans: Where to Begin

529-Plans:-Where-to-Begin

Do you know about 529 savings plans? A 529 Plan, named after Section 529 of the Internal Revenue Code, is a college savings plan that provides tax benefits to encourage contributions into the plan. There are two types of 529 Plans: Prepaid Tuition Plans and Education Savings Plans. With a Prepaid Tuition Plan, a party purchases credits at participating colleges for future tuition. In an Education Savings Plan, the more common 529 Plan with more flexibility in terms of how it is used, a party chooses a specific investment portfolio in which to invest money that can later be withdrawn to pay qualified education expenses.   

Every state offers at least one 529 Plan, but the benefits and fees vary so it is important to shop around and research each individual plan available to you before contributing. For example, although 529 Plans are funded with dollars that have already been taxed by the federal government, some states offer state income tax deductions on amounts contributed to 529 Plans.  Unless you are investing in a Prepaid Tuition Plan, you may find it makes more economic sense to participate in a 529 Plan sponsored by a state other than the state in which you reside because of the plan’s particular benefits.

Although the details of the plans vary, a universal benefit of the 529 Plan is that the earnings that grow over time in the 529 account are tax-free. Accordingly, the longer the money is invested into the 529 Plan, the more growth and tax benefits you will see. There are also significant estate planning benefits associated with contributing to a 529 Plan. 

For more information on 529 savings plans and how they may benefit your estate plan, contact our office today to schedule a meeting.

Tampa Estate Planning Attorney

Paul Riffel Law is located in Tampa FL and serves clients in and around Brandon, Tampa, Valrico, Odessa, Thonotosassa, Gibsonton, Sydney, Dover, Land O Lakes, Oldsmar, Apollo Beach, Lithia, Safety Harbor, Trilby, Plant City, Durant, Holiday, Hillsborough County and Pasco County.

Firm Location

1319 W Fletcher Ave
Tampa, FL 33612

Connect With US

  • Facebook
  • Twitter
  • LinkedIn
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

No content on this site may be reused in any fashion without written permission from www.PaulRiffel.com
Managed by MileMark Media

© 2015 - 2020 Paul E. Riffel, Attorney at Law. All rights reserved..
This law firm website & legal marketing is managed by MileMark Media.

Contact Form Tab