Why Recommend Private College 529 Plan?
Watch how this plan can help clients achieve education savings goals.
Recently published research by Brian Boswell, The 529 Expert, finds prepaid tuition can enhance the risk-adjusted return of a client’s college savings portfolio.
Download your copy of the Optimal College Savings Portfolio today.
You know your clients should be doing more to plan for the future cost of college. Now you can tell them about Private College 529 Plan that can potentially save them thousands on the cost of tuition.
Private College 529 Plan is a prepaid tuition plan, not an investment account. No matter how much tuition increases over the years or how volatile financial markets are, by prepaying tuition your clients lock in current rates at nearly 300 colleges and universities, from Princeton to Stanford and everything in between (large – small, liberal arts – STEM, faith-based – single-gender, selective – less selective.)
The Plan is sponsored and guaranteed by the participating colleges and universities – not a state government. The schools bear all of the financial risk and pay all of the fees so your clients get the most for their money. Private College 529 Plan certificates never loses value so think of it as a fixed asset in your client’s college savings portfolio. Private College 529 Plan can only be used to pay for undergraduate tuition and mandatory fees.
No other plan allows your clients to save money on the cost of college by purchasing tomorrow’s tuition at today’s prices, protecting their assets from tuition increases and market exposure. It’s almost never too early to open an account, an almost never too late. Prepaid tuition must be held for 36 months before it can be used at a participating college. Learn more about Private College 529 Plan by emailing 529Support@privatecollege529.
The value of a Private College 529 account increases as tuition rises over the years. Like any 529 plan, the increase in value of the account is federal tax-free, and clients can roll assets from another 529 account into their Private College 529 Plan account.
If your client’s home-state-sponsored 529 savings plan offers state tax deductions or credits, encourage your client to open the state-sponsored savings plan side by side with Private College 529. Use the assets in the savings account to cover the costs of room and board, books and computers. Use Private College 529 Plan to pay the costs of tuition and mandatory fees.
There are no income restrictions and account size limits are generous – five years’ tuition at the Plan’s highest cost school. The current maximum is $305,500.
Private College 529 Plan assets can be used to pay any qualified expense at any college or university, public or private. The tuition guarantee applies only to participating institutions. Outside the network, the value of the account is calculated as your client’s total contributions adjusted for net investment returns subject to a maximum increase of 2 percent per year or a maximum loss of 2 percent per year, compounded annually. If the refunded amount is not used to pay qualified higher education expenses, the earnings portion will be subject to federal income tax and an additional 10 percent penalty.
Contributions to any 529 plan, including Private College 529, are considered completed gifts and qualify for annual gift tax exemptions. Unique to 529 plans is the option for account owners to contribute the equivalent of five times the annual gift exclusion amount in a lump sum, currently $75,000 for single filers and $150,000 for joint filers. If the account owner dies within five years of making the lump sum contribution, a prorated amount is included in the account owner’s estate.