New Hutchinson Financial Video Outlines Details of 529 College Savings Plans

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Hutchinson Financial is teaching parents everything they need to know about 529 College Savings Plans, just in time for college students to return to school this month. The informational video titled, “What You Need to Know About 529 College Savings Plans,” is the latest installment of the popular Financial Briefing Video Series.

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"College costs are rising twice as fast as CPI inflation"

College is increasingly becoming essential to long-term success, while the cost of higher education concurrently rises to all-time highs. In light of the current back-to-school season, Hutchinson Financial, Inc.’s most recent educational video, “What You Need to Know About 529 College Savings Plans,” teaches parents and grandparents how to effectively save money for their child or grandchild’s future education.

Over the past 10 years, the average total cost of college has risen more than twice as fast as the consumer price index, according to Eric Hutchinson, president of Hutchinson Financial.

“So, if you want to help a child or grandchild save for college, what are your options?” Hutchinson asks. “While there are many college savings strategies available, 529 plans offer many unique advantages.”

In the newest Financial Briefing Video Series episode, Hutchinson summarizes the advantages of a 529 plan, so that parents can make informed decisions when planning for the future.

Both parents and grandparents are able to make contributions to a 529 account. Monetary gifts added to the plan can help to reduce the contributor’s gross estate under current estate and gift tax rules, according to Hutchinson.

In addition to reducing the gross estate, 529 plans provide account owners with other advantages as well. For instance, when the child or grandchild is ready to begin their college career, withdrawals from the 529 plan are exempt from federal income taxes; the only requirement is that the withdrawals be used for qualified higher education expenses such as tuition fees, and some room and board costs and supplies.

529 plan account owners can make a withdrawal at any time for any reason; however, if the withdrawal is for any purpose un-related to education, it may be subject to income taxes.

Families with more than one child will experience even greater flexibility with a 529 plan.

“If the designated child does not need all the money for their education, you can change the beneficiary and use the money for a different child or other family member,” he said. “529 plans are not the only college savings option, but they are a good option to consider.”

Watch “What You Need to Know About 529 College Savings Plans” online on the Hutchinson Financial, Inc. website.

About Hutchinson Financial
Hutchinson Financial, founded in 1988, is an Independent Registered Investment Advisory firm based in Little Rock, Arkansas. Hutchinson Financial, Inc. is a fee-only financial planning firm committed to helping all clients reach their individual financial goals. All Hutchinson team members who provide financial planning services and investment advice to clients have professional credentials such as Certified Financial Planner, Chartered Retirement Planning Counselor, Chartered Financial Consultant, Chartered Life Underwriter, or Accredited Investment Fiduciary. To learn more about Hutchinson Financial, Inc., please visit http://www.hutchinsonfinancialinc.com.

About Hutchinson Financial
Hutchinson Financial, founded in 1988, is an Independent Registered Investment Advisory firm based in Little Rock, Arkansas. Hutchinson Financial, Inc. is a fee-only financial planning firm committed to helping all clients reach their individual financial goals. All Hutchinson team members who provide financial planning services and investment advice to clients have professional credentials such as Certified Financial Planner, Chartered Retirement Planning Counselor, Chartered Financial Consultant, Chartered Life Underwriter, or Accredited Investment Fiduciary. To learn more about Hutchinson Financial, Inc., please visit http://www.hutchinsonfinancialinc.com.

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