College Savings / 529 Plans
A 529 college savings plan provides the flexibility you want with the tax advantages you need.
It's never too early to begin saving for education expenses. So whether you’re a new parent, grandparent, or planning to attend school yourself, college savings plans can help you spend more of your money on education – not on taxes. Starting early is an important component to successful education planning.
A 529 college saving plan provides a tax-advantaged program to help you keep ahead of skyrocketing education costs. The plan is flexible and affordable, and may offer you tax advantages that you have overlooked. 529 Plan features include:
- Professionally managed investment portfolios, with a variety of investment options and features
- Freedom to invest for a child or adult of any age
- Money may be used at almost any private or public college in the US to pay for tuition, books, housing and other eligible expenses.
- You won’t pay taxes while contributions accumulate
- The account beneficiary can be a child, grandchild, niece, nephew, family friend—even yourself.
- You can start investing with a small amount. Then, when it’s time for college, you decide when and how much to withdraw.
- No limits. Anyone can contribute.
Annual Contribution Limits
- $13,000 per child (single parents)
- $26,000 per child (married couples)
- Note: Higher contributions can be made but will be subject to federal gift tax regulations.
- Federal gift tax regulations allows $65,000/$130,000 per child at one time with no additional contributions for five years.
Income tax treatment
- Earnings can grow tax-deferred, and withdrawals for qualified higher-education expenses are also free from federal income tax.
Your Middleburg Investment Group representative* will take the time to understand your situation, identify your education savings goals, and get you started with a 529 plan that will try to meet your needs and your timeline.
*Securities offered through LPL Financial Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Middleburg Bank and Middleburg Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. Products and services made available through LPL Financial are not insured by the FDIC or any other federal government agency and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value. Middleburg Investment Group is a wholly owned subsidiary of Middleburg Financial Corporation.
There may be state tax advantages for investing in a plan sponsored by your home state. Consult your tax advisor. You may be able to invest directly with your home state.