Northwest Financial LLC

529 COLLEGE SAVINGS PLANS

If you have college-bound children, you’ve probably heard of a 529 college savings plan. A 529 college savings plan can be an excellent way to save for your child or children’s education for several reasons:

Earnings from a 529 college savings plan are exempt from federal taxes and withdrawals are tax-free when used for qualified education expenses.*

529 plans typically have high lifetime contribution limits and investment minimums are low.

A 529 plan is portable and open to residents and nonresidents alike. If you don’t like your state’s plan, you can take advantage of a 529 plan in another state.

You can change beneficiaries without penalty; for example, from a son to a daughter or from your child to your child’s first cousin.

There are generally no age restrictions or income limitations on a 529 plan. Adults can even set up a plan for personal use.

Plus, investing in a 529 college savings plan is relatively simple, and parents or grandparents can contribute to the plan. If you would like to find out if a 529 plan makes financial sense for you or your family, contact Northwest Financial to set up a complimentary consultation with an experienced financial representative.

*The earnings portion of withdrawals used for nonqualified expenses will be subject to federal income tax. Tax penalties may apply. Tax treatment at the state level will vary.

Access to securities and insurance products provided by Northwest Financial Group, a registered broker/dealer, member FINRA/SIPC. Northwest Financial Group is a subsidiary of Northwest Financial LLC, a wholly owned subsidiary of Northwest Federal Credit Union. Securities and insurance products are offered through LPL Financial and its affiliates, member FINRA/SIPC. LPL Financial has contracted Northwest Financial Group to refer securities and insurance business to LPL Financial. Northwest Financial LLC and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial. Not NCUA insured. No credit union guarantee. May lose value.

Loan protection and tax preparation services are not affiliated or endorsed by LPL Financial.

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