If you have kids, you may well be aware of 529 college savings accounts that allow you to save money for their future education needs. The money grows tax-free and can be distributed Federal tax free as long as it is exclusively used for educational purposes (some states also offer tax breaks). The downside? If your child doesn’t go to college or they don’t need all the money you saved, you would pay income tax and a 10% penalty on a withdraw (or you change the beneficiary to another family member). However, now there is another option! Up to $35,000 could roll in to a ROTH in your child’s name! There are a LOT of rules to follow to make this happens correctly but it could be a great retirement savings boost for your kids! If you have unused funds sitting in a 529 account, a CalmWater advisor would be happy to explain the process.
CalmWater Financial Network®, 3204 W Benjamin Ave, Suite 200, Norfolk, NE 68701 ~ (402) 371-5511
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.
www.calmwaterfinancialnetwork.com