We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Section 529 plans as retirement accounts.
- Authors
Terry, Andy; Goolsby, William C.
- Abstract
Section 529 plans were created to provide tax incentives for savings for qualified higher education expenses (QHEE). Earnings in 529 plans are tax-free if withdrawals are made for QHEE, otherwise there is a 10% penalty on the earnings, which are taxed at ordinary rates. Although nonqualified withdrawals are subject to a 10% penalty on the earnings, taxes on the earnings are deferred until withdrawal. This paper examines the use of Section 529 plans as retirement accounts by comparing after-tax and after-penalty future dollars from Section 529 plans with after-tax future dollars from ordinary taxable investments and tax-advantaged annuities. © 2003 Academy of Financial Services. All rights reserved.
- Subjects
TAX incentives; SAVINGS; HIGHER education; EDUCATIONAL finance; INDIVIDUAL retirement accounts; ANNUITIES
- Publication
Financial Services Review, 2003, Vol 12, Issue 4, p309
- ISSN
1057-0810
- Publication type
Article