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Education Planning / 529 Plans

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How much does it cost to open a 529 plan with MutualFinancial Investment Services? And what are the ongoing management costs?
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How much does it cost to open a 529 plan with MutualFinancial Investment Services? And what are the ongoing management costs?

There are no fees to set up a 529 plan, though a minimum amount of $25 is required to fund one. Then, you can contribute as much as you want, whenever you want with no ongoing fees.

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At which institutions may 529 college savings plan withdrawals be used?
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At which institutions may 529 college savings plan withdrawals be used?

Funds from a 529 college savings plan can be used at any accredited higher education institution to pay for any required materials.

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What expenses are covered by 529 plan withdrawals?
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What expenses are covered by 529 plan withdrawals?

Any expenses that the college or university requires are eligible for payment with funds from a 529 plan. Such expenses could include room and board, tuition, and required textbooks.

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What are 529 plans?
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What are 529 plans?

529 plans offer a designated, tax-deferred account to save for college. In the state of Indiana, for whatever amount you put into a 529 plan, you will receive a 20 percent tax credit on your state income tax return, with a cap of $1,000 credit.

So, if you put $5,000 in the account in one year, you will receive the maximum of $1,000 credit on your state tax return. As long as you use the money from a 529 plan to pay for qualified higher education expenses, it will remain a tax-free withdrawal.

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Can I set up automatic payments to go into my 529 plan?
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Can I set up automatic payments to go into my 529 plan?
Yes; You may set up automatic payments of any denomination to be deposited as frequently as you like.
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Can I manage and keep tabs on my 529 plan online?
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Can I manage and keep tabs on my 529 plan online?

Yes; You can move money around, see recent activity, and view statements. You can log on to your account here.

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What information should I bring with me to have MutualFinancial Investment Services start a 529 plan for me?
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What information should I bring with me to have MutualFinancial Investment Services start a 529 plan for me?

You'll be asked to present your U.S. Social Security number and one valid form of identification.

Acceptable forms of ID include:

● Driver's license
● State ID
● Military ID
● Passport

You will also need to provide personal information, including:

● Date of birth
● Phone number
● Former mailing address(es)

You will also be asked to provide general information on your chosen owner or successor of the account if something were to happen to you (this person does not need to be present).

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How often will I be able to contact and/or meet with a MutualFinancial Investment Services’ advisor regarding my 529 plan?
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How often will I be able to contact and/or meet with a MutualFinancial Investment Services’ advisor regarding my 529 plan?
Annual meetings are generally sufficient, but we are happy to entertain further meetings as needed.
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What if my child does not pursue a postsecondary education? What happens to our 529 Plan?
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What if my child does not pursue a postsecondary education? What happens to our 529 Plan?
You can transfer it to another beneficiary within your family or save it and allow it to grow for future generations. If you would like to close the account, you can remove the funds with a 10% penalty on the earnings. This is the penalty for removing the earnings for non-postsecondary education purposes anytime.
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Will 529 savings plans affect a student's chance to qualify for financial aid?
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Will 529 savings plans affect a student's chance to qualify for financial aid?
Yes. A 529 savings plan functions as capital that the parent possesses.
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These questions and answers are provided for general information only and may not be completely accurate in every situation. The information provided is not legally binding on MutualBank or any of its affiliates or subsidiaries. For assistance with specific questions regarding your account(s), please contact us.

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