• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Mandeville CPA

Mandeville CPA - CMR Associates, LLC

Mandeville, La CPA | Louisiana Tax Accountants, Prepares, and Business Advisors

  • Home
  • Services
    • Tax Accounting
    • Small Business Accounting
    • Business Consulting
    • Business Valuation
    • Notary Services
  • Industries
    • Construction
    • Musicians
    • Real Estate
    • Retail
    • Restaurants and Hospitality
  • About Us
  • Book Appointment
  • Show Search
Hide Search
You are here: Home / Individual Tax Advice / Save more for college through the tax advantages of a 529 savings plan

Save more for college through the tax advantages of a 529 savings plan

Mandeville LA Certified Public Accountant Tax Accountant College 529

Save more for college through the tax advantages of a 529 savings plan

With kids back in school, it’s a good time for parents (and grandparents) to think about college funding. One option, which can be especially beneficial if the children in question still have many years until they’ll be starting their higher education, is a Section 529 plan.

Tax-deferred compounding

529 plans are generally state-sponsored, and the savings-plan option offers the opportunity to potentially build up a significant college nest egg because of tax-deferred compounding. So these plans can be particularly powerful if contributions begin when the child is quite young. Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. In addition, some states offer tax incentives for contributing.

Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, supplies, computer equipment, software, Internet service and, generally, room and board) are income-tax-free for federal purposes and typically for state purposes as well, thus making the tax deferral a permanent savings.

More pluses

529 plans offer other benefits as well:

  • They usually have high contribution limits.
  • There are no income-based phaseouts further limiting contributions.
  • There’s generally no beneficiary age limit for contributions or distributions.
  • You can control the account, even after the child is a legal adult.
  • You can make tax-free rollovers to another qualifying family member.

Finally, 529 plans provide estate planning benefits: A special break for 529 plans allows you to front-load five years’ worth of annual gift tax exclusions, which means you can make up to a $70,000 contribution (or $140,000 if you split the gift with your spouse) in 2017. In the case of grandparents, this also can avoid generation-skipping transfer taxes.

Minimal minuses

One negative of a 529 plan is that your investment options are limited. Another is that you can make changes to your options only twice a year or if you change the beneficiary.

But whenever you make a new contribution, you can choose a different option for that contribution, no matter how many times you contribute during the year. Also, you can make a tax-free rollover to another 529 plan for the same child every 12 months.

We’ve focused on 529 savings plans here; a prepaid tuition version of 529 plans is also available. If you’d like to learn more about either type of 529 plan, please contact us. We can also tell you about other tax-smart strategies for funding education expenses.

Tax Accounting, Tax Preparation, and Business Consulting for Metairie, Louisiana
Industry Specific Accounting
Metairie CPA Services
Metairie CPA News

Tax Accounting, Tax Preparation, and Business Consulting for Mandeville, Louisiana
Industry Specific Accounting
Mandeville CPA Services
Mandeville CPA News

Tax Accounting, Tax Preparation, and Business Consulting for Baton Rouge, Louisiana
Industry Specific Accounting
Baton Rouge CPA Services
Baton Rouge CPA News

Tax Accounting, Tax Preparation, and Business Consulting for Covington, Louisiana
Industry Specific Accounting
Covington CPA Services
Covington CPA News

Mandeville Notary Public Services
Madisonville Notary Public Services
Covington Notary Public Services

Individual Tax Advice

Primary Sidebar

About Us

Mandeville CPA Tax Accounting Business

Tax Accounting and Business Consulting for Mandeville, Louisiana We specialize in tax accounting, …

Business Consulting

Mandeville CPA Business Consulting

Business Consulting for Mandeville, Louisiana: New Business Venture Start-Up – We file all …

Tax News and Advice

  • Individual Tax Advice
  • Small Business Tax Advice

Company Profile

Tax. Accounting. Solutions.

CMR Associates provides tax, accounting, CPA staffing, business system implementation, payroll, 401(k), consulting, and financial planning services.

Serving clients globally, we embrace distributed work environments.

Accounting News and Updates

  • 2 ACA taxes that may apply to your exec comp
  • Which tax-advantaged health account should be part of your benefits package?
  • Accelerate your retirement savings with a cash balance plan
  • “Bunching” medical expenses will be a tax-smart strategy for many in 2017
  • Timing strategies could become more powerful in 2017, depending on what happens with tax reform
  • Investors: Beware of the wash sale rule
  • 2 ways spouse-owned businesses can reduce their self-employment tax bill
  • Why you should boost your 401(k) contribution rate between now and year end

Book an appointment with Personnel Calendar using SetMore

Write or Call Today

CMR Associates, LLC
1070 West Causeway Approach
Suite B
Mandeville, LA 70471
(888) 530-5630
office@cmrtax.com

Get solutions today with CMR Assocaites. Learn More

Mandeville CPA - CMR Associates, LLC

© 2025 · Sitemap