529 Accounts

We are parents too, and we know your child’s education is most likely a high priority. As college and university costs continue to increase, it’s important to have a plan to pay for these expenses. Products like the 529 plan can help you fund all or part of your children (or grandchildren’s) schooling.

Save for college and education expenses, and enjoy tax advantages as well.

A 529 Plan is a state tuition savings program that enables individuals to save money on a tax-deferred basis to fund future college and graduate school expenses on behalf of a beneficiary, like a child. 529 Plans are established and maintained by a state agency, are administered by mutual fund companies and are designed to encourage saving for future college costs.

At Barnum, we recognize that a good education provides more than just a diploma or degree; it is the foundation of a solid future. We can help you forecast your family’s educational needs and help you save accordingly, so you’ll be ready to help fund their education well before that acceptance letter arrives in the mail.

529 Plans allow contributions to a state-sponsored plan for higher education expenses. Owner may change the beneficiary of the account to another eligible family member of the original beneficiary. Section 529 plans are authorized under IRC § 529 and are sponsored by the individual states. Some states may offer preferential state tax treatment if certain conditions are met. Contributions grow tax-deferred and qualified withdrawals are federal income tax-free. Gifts to a 529 plan qualify for the annual gift tax exclusion ($14,000 in 2017). Annual exclusion gifts to a 529 plan can also be non-loaded for a period up to 5 years. Taxable withdrawals may avoid the additional 10% penalty tax if they occur on account of death, disability, or receipt of scholarship.

Other Education Planning Resources

Life Insurance

Protect who and what matters most- today, tomorrow, and for years to come.

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Student Loans

Student loans can help fill the gaps between what you may have saved for your education and the scholarships you receive.

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Education Trusts

Pay for a loved one’s tuition with a trust fund that states how the money is to be used.

Learn More