Financial Tips

Test Your Knowledge of 529 Plans and Scholarships
(Updated: 10/07/2019)

529 Plans provide a tax-advantaged solution to help investors save for education expenses.  The funds in the account grow tax free and can be withdrawn in tax-free distributions when used to pay for qualified education costs.  Nonqualified distributions are subject to income tax and penalties on the earnings, including a 10 percent federal penalty.

True or False?

When a student who is a beneficiary of a 529 plan receives a scholarship, funds can be withdrawn from the 529 plan without penalty, up to the amount of the tax-free portion of the scholarship.

 

Fact vs. Fiction

Viewpoint Financial Advisors understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.