Learning Library Quick Answers Investment Planning

Are there any restrictions when taking distributions for college expenses out of an IRA prior to 59 1/2?


Answer: To take the distribution penalty-free, the qualified expenses must be in the same year as the distribution.....

Are there income limits or thresholds that phase out or eliminate the ability to contribute to a 529 College Savings Plan account?


Answer: No. There are no income or other limits on the ability to contribute to an account other than the maximum funding level ea....

Are there state deductions for contributions to a 529 College Savings Plan?


Answer: Yes. Many of the states have laws allowing for a deduction on personal income tax returns for contributions made to 529 Co....

At what age can a child receive $5,250 per year tax free under the Section 127 plan?


Answer: When the employee is the business owner's child, that child must be 21 years old to receive up to $5,250 per year tax free....

Can 529's be used for international universities?


Answer: Generally not, but a definition of an eligible school can be found on IRS Publication 970. Go to www.fafsa.ed.gov and sear....