Benefits of 529 Plans

1. Anyone can open a 529 account to save for a student’s qualified higher education expenses;

2. There are no income restrictions;

3. The beneficiary can be changed to an eligible member of the original beneficiary’s family at any time without a penalty;

4. The beneficiary doesn’t need to be a child. Adults can use the plans to save for their own qualified higher education expenses;

5. Residents from any state can open a 529 account in any state with a sponsored plan; and

6. Portfolios are professionally managed and diversified

Contribution Limits & Estate Planning Benefits

1. Individuals may contribute up to $55,000 and married couples may contribute up to $110,000 per beneficiary in a single year without incurring a federal gift tax impact; and

2. Once the gift is made, the funds are generally not considered as part of the donor’s estate for tax purposes

Control of Assets & Distributions

1. The account owner (i.e. participant) maintains ownership of the assets until withdrawn;

2. Distributions from 529 plan can be taken at any time for any reason; however, if the funds are not used for qualified higher education costs, earnings will be subject to federal income tax at the participant’s rate and a 10% federal penalty;

3. If the beneficiary receives a scholarship, the scholarship amount can be withdrawn from the 529 Plan and the 10% federal penalty tax on earnings will not apply. However the earnings will be subject to income taxes at the participant’s rate; and

4. Withdrawing money from a 529 plan is easy. Simply fill out a distribution form with instructions on where the money should be sent, and submit it to the plan sponsor for immediate processing

Shoreline’s Competitive Edge
We are a network of independent professionals with over 150 years of combined experience in wealth management and advice. Members of this network can be used individually or collectively for a single program or a series of seminars or workshops for your company or organization.

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Charles M. Bloom, Registered Principal offers securities and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.

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