Take a Closer Look at Myths Surrounding 529 Plans

Submitted by Edward JonesPrint Story | Email Story

If you want to help pay for your children's college educations, you might want to consider contributing to a 529 plan. With this plan, your earnings grow federally tax-free, as long as the withdrawals are used for qualified higher education expenses such as tuition and room and board.

Yet, you may have heard some things about 529 plans that are keeping you from investing in one. However, these concerns may be more myth than reality, so let's take a look at a few of them.

* "I need a lot of money to contribute to the plan." This myth has essentially no truth to it. Typically, only a modest amount is required to open your 529 plan, and you can generally transfer small sums to it from your checking or savings account.

* "If my child doesn’t go to college, I lose out on the money I've put in." This myth runs counter to one of the 529 plan's greatest benefits: flexibility. If you've named one child (or grandchild) as a beneficiary of a 529 plan, and that child or grandchild decides against pursuing higher education, you can simply change the beneficiary to another eligible family member. Furthermore, if none of your intended beneficiaries will need the 529 plan, you can name yourself the beneficiary and use the money to take classes or receive some other type of qualified education opportunity. In a worst-case scenario, in which the money is never used for education, you will be taxed on the earnings portion of the withdrawals – but had you never contributed to a 529 plan, the funds would have been taxed, anyway. (However, you might be subject to a 10 percent penalty tax, in addition to regular income taxes, again on the earnings portion of the withdrawals.)


* "I have to invest in my own state's plan." Not true. You're free to invest in the 529 plan of any state, no matter where you live. But it could be advantageous for you to invest in your own state's plan, as you might receive some tax breaks for state residents. (The tax issues for 529 plans can be complex, so you will want to consult with your tax advisor about your situation.) Investing in your own state's plan also might provide access to financial aid and scholarship funds, along with possible protection from creditors.

* "A 529 plan will destroy my child’s chances for financial aid." While a 529 plan could affect your child’s financial aid prospects, it might not doom them. And the benefits of building significant assets in a 529 plan could outweigh the potential loss of some needs-based financial aid.

Before investing in a 529 plan, you will want to explore it thoroughly, as you would any investment. You can find details about a 529 plan's investment options, share classes, fees, expenses, risks and other information in the plan's program description or offering statement, which you should read carefully before making any purchasing decisions.

But, in any case, don't let "myths" scare you off from what could be one of your best college-savings vehicles.

This article was written by Edward Jones for use by your local Edward Jones financial advisor. Courtesy of Rob Adams, 71 Main Street, North Adams, MA 01247, 413-664-9253.. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. For more information, see EdwardJones.com.

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North Adams Happenings: Oct. 23-29

SAVE THE DATE
NOVEMBER 2nd - Masquerade at Greylock WORKS
On November 2nd, three weeks before FESTIVE, come to gWorks to dance in disguise at our MASQUERADE Halloween costume party! Doors open at 8pm !
Celebrate your costume ingenuity with DJ BFG spinning seamless upbeat dance music within immersive theatrical lighting choreographed by LJ McZawa.
Whether you're coming out in a dramatic mask + your favorite party clothes or a full-body transformation, our local friends are joining in on the fun to motivate your creativity with Costume Themes and PRIZES.
https://www.facebook.com/events/406993753316580/
Wednesday 10/23
9:00 A.M. (FREE), SOCIAL, Open Hours UNO Community Center, 157 River Street, (413) 664-4612 More information.

10:00 A.M. (FREE), KIDS, Terrific Tots Playgroup The Family Center, 210 State Street, (413) 664-4821 More information.  


10:30 A.M. (FREE), PARENTING, Parenting Workshop: Surviving your Adolescents nbCC Conference Room, 61 Main Street, Room 213, (413) 663-7588 More information.  


11:30 A.M. (FREE), KIDS, Little Wonders Baby Playgroup The Family Center, 210 State Street, (413) 664-4821 More information. 

4:00 P.M. (FREE), FAMILY, Family Literacy Night Series The Family Center, 210 State Street, (413) 664-4821 More information.  


6:00 P.M. (FREE), WORKSHOP, Educator Open House North Adams Public Library, 64 Church Street, More information.

8:00 P.M. (FREE), GAMES, Trivia Night! Ramunto's, 67 Main Street, (413) 398-5152 More information.

Thursday 10/24
9:00 A.M. (FREE), SOCIAL, Open Hours UNO Community Center, 157 River Street, (413) 664-4612 More information.

10:00 A.M. (FREE), PARENTING, Kids Safety of America: Child Abuse and Neglect nbCC’s Conference Room, 61 Main Street, Room 213 More information.

4:00 P.M. (FREE), TUTORING, After School Program UNO Community Center, 157 River Street, (413) 664-4612 More information.

4:30 P.M. (FREE), CONVERSATION, Spaghetti Supper with Tom Bernard North Adams American Legion, 91 American Legion Drive More information.

4:30 P.M. (FREE), FAMILY, Dad and Family Time- Bowling and Pizza Night Valley Park Bowling, Curran Highway More information.

5:00 P.M. (FREE), SOCIAL, Octoberfest in The Airport Rooms TOURISTS Welcome, 915 State Road More information.

5:00 P.M. (FREE), BIKING, Halloween West End Bike Around Greylock School, 100 Phelps Ave More information.

6:00 P.M. (FREE), OPEN MIC, OPEN MIC The Parlor Cafe, 303 Ashland Street More information.

6:00 P.M. (FREE), INFORMATIONAL, Milton Hershey School Family Event: North Adams, MA Freight Yard Pub & Restaurant, 1 Furnace Street More information.

7:30 P.M. (FREE), WRITING, Fiction Writing Workshop [open house] Common Folk, 85 Main Street More information.

7:30 P.M. (FREE), BINGO, Musical Bingo at Mingo's Sports Bar and Grill 41 Roberts Drive More information.

8:00 P.M. ($15), COMEDY, Comedy Night w/ Andy Sandford HiLo North Adams, 55 Union Street More information.
Friday 10/25
10:30 A.M. (FREE), CONVERSATION, Coffee with a Cop MCLA Campus Center, 375 Church Street More information.

10:30 A.M. (FREE), PARENTING, Ages and Stages The Family Center, 210 State Street, (413) 664-4821 More information.

10:00 A.M. (FREE), KIDS, Drop-In Playgroup The Family Center, 210 State Street, (413) 664-4821 More information.

12:00 P.M. (FREE), SOCIAL, Open Hours UNO Community Center, 157 River Street, (413) 664-4612 More information.

7:00 P.M. (FREE), MOVIES, Halloween cartoon movie night MCLA Freel Library, Blackinton Street More information.

7:00 P.M. (By Donation), CRAFTING, Knitting Nights with Common Folk Common Folk, 73 Main Street More information.

7:00 P.M. ($1 and up), GAMES, BINGO! North Adams Elks 487 Lodge, 100 Eagle Street, (413) 664-9039 More information.

7:00 P.M. ($12 adv, $15 at the door), CONCERT, Gregory Douglass LIVE at HiLo North Adams HiLo North Adams, 55 Union Street More information.

8:00 P.M. (Prices vary, click link for details), THEATER, Miss Julie MCLA Theatre, 375 Church Street More information.

9:00 P.M. (FREE), MUSIC, Karaoke Friday! State Street Tavern, 167 State Street, (413) 664-9152 More information.
Saturday 10/26
9:00 A.M. (FREE), CLOTHING DRIVE, Winter Clothing Drive First Baptist Church of North Adams, 131 Main Street More information.

10:00 A.M. (FREE), GARDENING, Gardening Program UNO Community Center, 157 River Street, (413) 664-4612 More information.

12:30 P.M. (Child $5, Adults $8, Family $25), FUNDRAISER, AYJ Fund Children's Princess Concert MCLA Church St Center, 375 Church Street More information.

3:00 P.M. (Cost of Admission), ART, Opening Reception: Sarah Oppenheimer, Jenny Holzer, and ERRE MASS MoCA, 1040 MASS MoCA Way More information.

6:00 P.M. (FREE), CONCERT, Fall Foliage Sunset Serenade - Jessica Gregory Wilson Wigwam Western Summit, 2350 Mohawk Trail More information.

8:00 P.M. (Prices vary, click link for details), THEATER, Miss Julie MCLA Theatre, 375 Church Street More information.

8:00 P.M. ($12 adv, $15 at the door), CONCERT, Misty Blues HiLo North Adams, 55 Union Street More information.

8:00 P.M. (Prices Vary, see link for details), CONCERT, Jenny Scheinman & Allison Miller’s Parlour Game MASS MoCA, 1040 MASS MoCA Way More information.
Sunday 10/27
2:00 P.M. (Prices vary, click link for details), THEATER, Miss Julie MCLA Theatre, 375 Church Street More information.

7:00 P.M. ($20 adv, $25 day of), CONCERT, Jeffrey Foucault HiLo North Adams, 55 Union Street More information.
Monday 10/28
5:00 P.M. (FREE), WORKSHOP, ROOTS Volunteer Training ROOTS Teen Center, 43 Eagle Street More information.

5:00 P.M. (FREE), BIKING, nbCC Bike Collective The Armory, 206 Ashland Street More information.

6:00 P.M. (FREE), WORKSHOP, Communications Career Panel Bowman Hall - MCLA, 375 Church Street More information.
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