It’s good that the New York Fed releases its quarterly report on debt in the US before most college acceptance and financial aid award letters go out. Why? Because it gives us a chance to look at what is going on in the world of student loan debt and help our students avoid joining the lost world of young adults with excessive debt.
You can rebalance your 529 plan account twice a year. Just because you can, should you? If you’re in an age-based investment option, you don’t need to rebalance to maintain the correct asset allocation. That’s what an age-based strategy does for you. Those who select their own funds should rebalance, especially since your allocation has probably become Continue reading Rebalancing 529 Accounts
The PATH Act that went into effect in 2015 includes several changes pertinent to 529 plans. The big ones:
- Computers, peripherals and Internet access are now qualified expenses. So add any money spent on those to what’s on your 1098-t.
- People with multiple 529 accounts no longer need to aggregate them to determine how much is taxable earnings in the event of an excess withdrawal. Instead a single account can be used for that, as long as funds were withdrawn from that account.
- In the event you receive a refund from a college– for example, you withdraw from a class– you can now redeposit that refund in the 529 account within 60 days for no penalty.
Tax time is upon us and with it, questions about form 1098-t. This is the form colleges use to report qualified expenses. The 1098-t is sent to any student who (or on whose behalf were) paid qualified education expenses.
Colleges can report expenses two ways: If the expense is reported in box 1, the college is Continue reading Form 1098-t and the Academic Period