More Than Tuition: Your 529 Surprises! - Palma Financial

Did you think your 529 account only covered tuition? Think again!

Your student’s needs are tax-free, from tuition and mandatory fees to books, computers, and even required equipment! Yep, that’s right, no federal or state taxes on those qualified expenses.

Even Adobe software and printers? Yep, covered!

Thinking about off-campus living? Good news – many 529 plans can help with that too. Just make sure it’s comparable to on-campus costs, and you’re good to go.

Thinking of contributing while your student’s in school? Absolutely! Keep those funds flowing for advanced studies or other needs.

Timing matters – match expenses with distribution years to avoid tax penalties.

What’s not covered? Travel, fraternity, or sorority fees aren’t included. But don’t fret, most other expenses are covered, and there are no hidden fees or penalties for qualified expenses.

And here’s the good stuff:

Easy Payments: Most 529 plans offer simple online payment tools. Pick from ACH deposits, mailed checks, or direct electronic payments to the college. No more hassle or fees.

Smart Receipt Keeping: While not mandatory, holding onto expense receipts is smart for potential audits or justifying claims.

Direct Payments: Make life easier by paying institutions directly through many 529 plans. It saves time and minimizes errors.

Want personalized assistance to navigate your 529 plan and maximize your savings? Book your tax assessment by clicking here, replying to this email, or calling us at (850) 829-3733.