If you recently filed for divorce from your spouse in West Palm Beach and you have children, you are likely wondering what you can do with any child support you receive. Child support can be used for just about anything when it comes to your child, including opening a college savings fund in their name.
Are you worried about being able to pay for your child to attend college when the time comes? Do you worry that the other parent will not help out? If so, it’s time to invest in your child’s future. You can do so by opening a 529 account. This is an account that is dedicated solely to the education of your child.
A 529 plan is a great way to invest in your child’s future. You can even deposit money from child support payments into the account, if you so choose. This account will earn interest from the day it is created until the day you withdraw the funds to pay for tuition, boarding, books, fees and anything else associated with their education.
You will not be hit with any tax implications when withdrawing from a 529 plan so long as it is not done before a certain point in the child’s life. If withdraws are made early, you will face taxes on the money. It’s best to speak with an attorney when setting up such an account.
As you already know, saving for college is an important part of life. You can get your child off on the right foot by using the child support money you receive from the other parent to invest in a college savings fund like a 529 plan.