Social Security Issues For Women
Many women suffer financial hardship when a marriage ends due to death or divorce. Understanding what Social Security benefits you are entitled to can help bridge at least a portion of that financial gap.
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The 529 Savings Plan, a tax-efficient way to pay for tuition from preschool through graduate school, benefits the plan’s owner as well as its beneficiary. However, state laws complicate their use because 529 regulations vary from state to state. Complications aside, most parents, grandparents, aunts and uncles agree with Benjamin Franklin who astutely observed, “An investment in knowledge pays the best interest.”
Any U.S. citizen or resident alien who is 18 or older can open these tax-favored savings plans whose monies are earmarked to fund education. Even adults can open a 529 plan for their own benefit. However, only one person can own each plan and there can be only one beneficiary per plan. Anyone can contribute to a plan and there are no income restrictions associated with contributions, which makes them attractive to multiple generations.
According to federal law, 529 donations grow tax-free and withdrawals are tax-free as well – as long as they are spent towards a list of qualified educational expenses. However, no state is required to follow these federal laws, and some do not.
The Tax Cuts and Jobs Act of 2017 (TCJA) created a good deal of the confusion about how 529 plans are regulated because each state, including the District of Columbia, sets its own legal mandates. Currently, a majority of 30 states reward 529 contributions with full or partial tax deductions, credits or incentives for contributions to residents who set up accounts in their jurisdictions, while seven states (Arizona, Arkansas, Kansas, Minnesota, Missouri, Montana and Pennsylvania) offer deductions to 529 plans established in any state. However, seven states, including California, Delaware, Hawaii, Kentucky, Maine, New Jersey and North Carolina, do not offer deductions for 529 contributions at all.
What you need to know before you contribute
Because the states regulate these educational funding mechanisms, it is imperative that contributors consult with their financial advisors to fully understand the tax implications before they make their contributions. Here are some tips to keep in mind:
For more information about how 529 plans operate in your state and how creating one could benefit you and your beneficiary, consult your financial advisor at Atlanta Financial Associates.
The opinions voiced in this post are for general information only and are not intended to provide specific advice or recommendations for any individual. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is no guarantee of future results.
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Many women suffer financial hardship when a marriage ends due to death or divorce. Understanding what Social Security benefits you are entitled to can help bridge at least a portion of that financial gap.
There comes a point in nearly everyone’s life when they begin to wonder if they should continue to rent or make the step of purchasing a home – but throw a global pandemic, low mortgage rates and a crazy housing market into the mix, and it makes the choice a whole lot more complicated. Furthermore, since January 2020, home sales have been steadily increasing.1
Atlanta, GA – April 1, 2021 – Atlanta Financial Associates announced that Julie Andrews, MBA, CFP®, AIF®, has been named to Forbes’ Top Women Wealth Advisors list for 2021. This is the fifth consecutive year that Andrews has been recognized by Forbes as a top performing female advisor in the U.S. The list was published on Forbes.com.
In one of his first major moves in office, President Biden has signed the American Rescue Plan Act – a $1.9 trillion stimulus plan meant to extend, renew and implement relief for those affected by COVID-19.
Below is a breakdown of some important components to this legislation, including what business owners, families and struggling individuals may need to know.
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