Whether to participate or not in a 529 plan is a less clear decision for an active or retired Military Officer or Senior NCO. You'll want to account for Veteran's Benefits and your state income tax situation as a start.
While Active and Retired Military Officers have a great benefit in the ability to use the GI Bill to pay for college. It won't always be enough and sometimes student loans will be necessary. And, when there are student loans, there can be more funds available than required. Here's four smart things to do with those leftover student loan funds.
Military Officers can make college possible and receive aid by properly completing a FASFA application. Here’s what you must know before getting started.
Generally speaking service academy cadets and midshipmen have all their education expenses covered with the exception of books. This exception, combined with the fact that it is unlikely that their parents can claim them as dependents opens the door for the American Opportunity Credit.
If you meet certain requirements, the interest on US Savings Bonds is tax-free if used for qualified education expenses. Retiring Military Officers, need to project their post-retirement income to see if they will still qualify for the tax-free treatment. If they won't, cashing in the bonds prior to retirement may make sense.
While many military members will be able to use GI Bill funds to pay for their children's education, in many cases it won't be enough. Using a 529 plan to save for college expenses is a good idea. But you also need to understand how you can use 529 plan funds.
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