If you’re researching how to open a child’s bank account, you may have stumbled on what’s known as a “Section 529.” But what is it? How does it work? How early can you start one?
Cornerstone Bank is here to help. We support our community by providing a Section 529 savings plan in Kansas City to serve the needs of the families and to offer an alternative gift idea for your child or grandchild that will grow with them.
What is a Section 529 Plan in Kansas City?
Cornerstone Bank offers Section 529 Plan in Kansas City, which is one of the best options available for saving for your child’s college tuition. Sponsored by the state, 529 Savings Plans are primarily used later down the road, when the child is starting to think more about whether or not to attend college.
Money in a Section 529 Account can be used toward accredited institutions, and can be applied to two-year, four-year, graduate programs, as well as qualified trade and vocational programs.
These accounts carry significant tax benefits, and are now able to be used to pay for qualified K-12 expenses, such as private school tuition. Please consult with a tax advisor for specific tax advice.
Depending on where you live, you may also receive additional tax benefits for making contributions to your family’s Section 529 Account in Kansas City:
Kansas
The state of Kansas allows up to $3,000 in tax deductions per beneficiary per year.
Missouri
The state of Missouri allows up to $8,000 in tax deductions per beneficiary per year.
How does a section 529 Account work?
Opening a Section 529 Plan in Kansas City is easy. Because the account is in your child’s name, but, you as the adult are required to open the account for the minor, it simplifies the process quite a bit.
How early can I start a Section 529 Plan?
You’re able to start a Section 529 Plan in Kansas City as early as you’d like, even if the child is still an infant.
The holidays are the perfect time to consider gifting your child a Section 529 Account in Kansas City rather than a short term gift. Having the security of a Section 529 Plan in Kansas City will help promote their long-term success by making a set savings plan available for college expenses.
Why Cornerstone Bank?
Convenience of online banking.
Being able to keep an eye on all of your funds and assets in one place is the first step in organizing your finances and keeping track of your contributions. Cornerstone Bank offers mobile banking to complement our Section 529 Plans in Kansas City.
Honest & experienced staff.
Our lending staff has an average of 14 years at our bank. We’re invested in the community and would love to teach you more about how to save for your child’s future using a Section 529 Plan in Kansas City.
What are my other options?
Signing up for a Section 529 Savings Plan in Kansas City may not be the best fit for your family depending on your current assets and other savings accounts and plans available to you. Be sure to stop Cornerstone Bank at your earliest convenience and we’ll guide you through your options and help you decide what’s best for your family. And if you’re new to the area, learn how to switch banks in Kansas City from the experts at Cornerstone Bank!