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529 Plans & Education Savings Accounts

What is a 529 Plan?

A 529 Plan is a tax-advantaged investment account that encourages saving for future education expenses of a designated beneficiary.

There are currently two versions of the 529 plan, A Savings plan and a Prepaid-Tuition Plan.

A Savings plan allows deposits to be invested in the market and grow tax-deferred with withdrawals being tax free if they are used for qualified educational expenses. It can cover K-12 qualified expenses as well as qualified expenses for Trade School and Higher Education.

The Pre-paid tuition plan allows the account holder to pay in advance the tuition as designated colleges and universities. This allows the account holder to lock in the cost of education at Today's rates.

Most states offer 529 plans that are run by the state the account holder resides. Since Texas does not have a State Income Tax, Thieman-Stinnett can offer its Texas clients plans from other states that may be better suited for your needs.

Each plan has its own rules and advantages. To learn more about saving for your children's education, call us at 325-655-5520 or you can reach us by clicking the Contact Us link above.

To get an idea on how much you should save for your kid's education we have provided a link below to our Education Savings Calculator

Education Savings Calculator

Countdown to College

CollegeAmerica

There is no guarantee that the plan will grow to cover college expenses. In addition, depending upon the laws of your home state or designated beneficiary, favorable state tax treatment or other benefits offered by such home state for investing in 529 college savings plans may be available only if you invest in the home state's 529 college savings plan. Any state-based benefit offered with respect to a particular 529 college savings plan should be one of many appropriately weighted factors to be considered in making an investment decision. You should consult with your financial, tax or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances and also may wish to contact your home state or any other 529 college savings plan to learn more about the features, benefits and limitations of that state's 529 college savings plan. You may also go to www.collegesavings.org for more information.
Other states may include financial aid, scholarship funds, and protection from creditors.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

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