So you’ve done a great job – or perhaps a reasonably good job – at putting money aside to fund your college student’s education. If 529 plans are a tool you use, here are some ideas for smart withdrawal strategies to help you make the most of the money set aside to pay for college.
First of all, remember that the benefits of 529 accounts include:
My recent post on Saving for College covers the basics of using 529 plans to put away money for education expenses.
Here are six things to keep in mind when it’s time to start taking distributions from 529 plans:
Saving for college can be fairly simple: put away as much as you can and use tax-advantaged accounts. Paying for college can be complex. Developing a thoughtful withdrawal strategy before it’s time to pay the bills ensures you’ll make the most of what you’ve saved.
Do you have more questions about paying for college? Contact us.
Rob Kania is Principal and Co-Founder of Laurentide Advisory.