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529 College Fund

Both parents and grandparents contributing to 529 education accounts for a child college education do not need to actually live in the same state as where the 529 college fund is. So even if the child parents live in California and the grandparents live in Florida they are both legally entitled to set up a plan in the state they live or where the child lives or any other state that they like because the plans being offered are much better.

The thing is that if a parent, grandparent or other relative chooses to set up a college fund in order to help to pay towards a child college education they can do so. Then the funds in this account can be used in the future towards tuition fees, board and room, college materials (books etc) at any accredited college or university in the USA. Some of these even allow for the funds to be used towards their education if they choose to attend a particular college or university abroad.

There are some real advantages to be gained from taking out such plans and you will find plenty of helpful advice and information on the internet concerning these. However, below we take a quick look regarding 529 college plans tax info.

Although the contributions anyone over the age of 18 makes to such plans can not be deducted from a person's Federal tax return. The funds that are invested allowed to grow tax deferred and all withdrawals made in order to pay for college expenses can be done so tax free. Today all 529 college funds no matter which state that they have been set up have to provide these in accordance with the Pension Protection Act, which was brought into force in 2006. You can read more free advice on 529 Accounts at http://www.529AccountsPro.com

Through out the time funds are being contributed to the account only the person making the contributions has control over it and until the recipient reaches time for them to attend college, they have no rights to access them. So at all times you are the one that calls the shots and decides what the funds are used for and when. Nevertheless, be warned that if at any tie you choose to withdraw funds then the 529 college fund withdrawal rules stand. If the withdrawal is to be used to pay for college expenses then no tax is required to be paid on them but if they are not only will the person be subject to paying income tax on them, but they will also be required to pay a further 10% penalty tax.

When it comes to enrolling into any of the current college savings accounts for a child it is very simple and easy to do. Many of the states now offer you the facility to actually enroll and make contributions to their plans online. In addition, if you choose to you can opt to transfer out of a 529 college fund savings program to another each year if you so wish.

Article by Ashley Goad at http://www.529AccountsPro.com For more great free information on everything you should know about 529 Account visit => 529 College Plan.

Source: www.articletrader.com