Roth 401(k)
What is Roth 401(k)?

To Roth or not to Roth 401(k)
The pros and cons of a Roth 401(k) vs. a regular 401(k)

Health Savings Account (HSA)
What is a Health Savings Account (“HSA”)?

A Roth IRA for your kids? Yes, you can.
Here's a tax strategy you haven't heard before: Hire your kids to handle domestic duties and put their pay into a Roth IRA

What is a 529 plan?

Saving for College with 529 Plans

529 plan history

A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996.

State plans are OK for out of state colleges

529 Plans can be used to meet costs of qualified colleges nationwide. In most plans, your choice of school is not affected by the state your 529 savings plan is from. You can be a CA resident, invest in a VT plan and send your student to college in NC.

Which states offer 529 plans?

Every state now has at least one 529 plan available. It's up to each state to decide whether it will offer a 529 plan (possibly more than one) and what it will look like, meaning 529 plans can differ from state to state. You should research the features and benefits of your plan before you invest. In Virginia, CollegeAmerica, CollegeWealth, Virginia Education Savings Trust (VEST), Virginia Prepaid Education Program (VPEP)

Tax Benefits

As long as the plan satisfies a few basic requirements, the federal tax law provides special tax benefits to you, the plan participant.

Types of 529 plans

529 plans are usually categorized as either prepaid or savings plans.

Savings Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments. The plan will offer you several investment options from which to choose. Your account will go up or down in value based on the performance of the particular option you select.

Prepaid Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Independent 529 Plan is a separate prepaid plan for private colleges.

Educational institutions can offer a 529 prepaid plan but not a 529 savings plan (the private-college Independent 529 Plan is the only institution-sponsored 529 plan thus far).

Enrolling in a 529 plan

There are two ways to invest in a 529 plan.

  1. Directly with the 529 Plan manager.
  2. Through a financial advisor.