Hatcher Capital Investments makes saving for College easy
What Is a 529 Plan?
A 529 plan is a tax-advantaged savings plan designed to help pay for education. Originally limited to post-secondary education costs, it was expanded to cover K-12 education in 2017 and apprenticeship programs in 2019. The two major types of 529 plans are savings plans and prepaid tuition plans. Savings plans grow tax-deferred, and withdrawals are tax-free if they're used for qualified education expenses. Prepaid tuition plans allow the account owner to pay in advance for tuition at designated colleges and universities, locking in the cost at today's rates. 529 plans are also referred to as qualified tuition programs and Section 529 plans.
Call us and we can get you set up with your own 529 Plan!
KEY TAKEAWAYS
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College tuition increasing faster than inflation
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Start saving now in a 529
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Potential state income tax deductions for AR residents ($5,000 single filers, $10,000 joint)
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Tax free growth
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Tax free distributions if used for college expenses
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Can change beneficiary if funds aren’t needed