It Is Not Cheap to Go To College

In 2018-2019, tuition and fees averaged $35,830 for private colleges, and $10,230 for in-state public colleges, according to Sallie Mae.  It is recommended to start saving for college early on and the preferred savings vehicle we recommend is a 529 savings plan.  Some of the benefits of a 529 plan are the following:

• Tax-free growth
• Tax-free distributions for qualified education expenses (including registered apprenticeships)
• Some states offer a state income tax deduction (not CA)
• Typically, minimal impact on financial aid because assets are treated as belonging to the account holder, not the student
• Tax-free withdrawals up to $10,000 for private, public, or religious elementary and secondary schools and student loan repayments ($10,000 lifetime maximum)
• The donor controls the account
• No income limitations

BFSG can manage client 529 accounts through my529 (Utah’s plan).  If you want to find out more about 529’s or how to get started, give us a call.