Trump Account vs. 529 Plans (Or Both?)

Buy my book, The Art Of Legal Tax Avoidance ▶ https://theartoflegaltaxavoidance.com/?utm_source=youtube&utm_campaign=book_launch Book a Professional Tax Assessment Call ▶ https://start.taxalchemy.com/consultation?utm_source=youtube Download the Short-Term Rental Rule E-Book! ▶ https://ebook.taxalchemy.com/?utm_source=youtube We earn commissions when you shop through the links below. Get Help Setting up Your LLC, Now ▶ https://shareasale.com/r.cfm?b=617326&u=2911896&m=53954&urllink=&afftrack= A 529 plan is a tax-advantaged investment account designed specifically to help families save for education. The basic idea is simple: you put money in, it grows inside the account over time through investments, and when it's time to pay for school, you take it out completely tax-free. That last part is the whole point. The federal government doesn't touch those earnings when they come out, as long as you're using the money for qualified education expenses. What counts as a qualified expense? Tuition is the obvious one, but the list goes further than most people realize. Room and board, textbooks, computers, supplies, and even certain K–12 costs and apprenticeship programs all qualify. So if you're paying for your child's education in almost any form, there's a good chance a 529 plan can cover it tax-free. On top of the federal tax benefits, most states sweeten the deal even further by offering a state income tax deduction or credit just for contributing to a 529. That means you can get a tax break on the way in when you contribute, and another tax break on the way out when you withdraw for school. Very few savings tools give you both. One thing that surprises a lot of parents is who actually controls the account. It's you, not your child. You make the investment decisions, you control the withdrawals, and if your child ends up not needing the money for school, you can typically reassign the account to another family member without any penalty. The flexibility is better than most people think. CHAPTERS 0:00 Intro 0:17 What Is a 529 Plan? 1:36 How Much Can a 529 Plan Grow? 2:38 The SECURE 2.0 Change That Makes 529s Better 3:30 529 Plan Limitations 3:48 What Is a Trump Account? 5:12 How Trump Accounts Work 6:27 The $1,000 Government Head Start 7:11 Are Trump Account Withdrawals Tax-Free? 8:14 Which One Do You Actually Need? 9:28 Outro *Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you. #taxstrategy #generationalwealth #karltondennis