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Tax-Efficient Strategies for Summer Adventures and Beyond
For many retirees, the idea of retirement is synonymous with freedom. You can exercise that freedom by choosing to spend your days traveling, spending summers with the grandkids, or simply relaxing and taking it day by day without a harried schedule. However, the transition from a steady paycheck to a reliance on your own savings can be daunting. Without a clear strategy, the lifestyle you envisioned and saved for could be hard to maintain.
To help keep your summer plans and long-term financial health intact, it’s important to approach your retirement spending with tax efficiency in mind.
A Quick Look at the Standard Withdrawal Options
The standard advice can often look like this: spend your taxable brokerage accounts first, then your tax-deferred accounts (like traditional IRAs), and finally your tax-free Roth accounts. However, if you haven’t made any withdrawals from your traditional IRA by age 73, Required Minimum Distributions could unintentionally push you into a significantly higher tax bracket. This could also affect your Medicare costs or increase taxes on your Social Security. Another drawback is that if you’d like to move your money into a new vehicle earlier in your retirement (when you still have taxable accounts you’re pulling from), this could also add to your tax burden, so drawing from tax-free sources that year could help balance that income.
The other piece of standard advice is the 4% rule. This classic retirement rule of thumb is designed to help you determine how much you can withdraw from your portfolio each year without running out of money over a 30-year period.
The rule is straightforward in its execution*:
- Year One: You withdraw 4% of your total retirement nest egg. For example, if you have $1,000,000, you take out $40,000.
- Subsequent Years: You don’t take 4% of the remaining balance. Instead, you take the same dollar amount from the previous year and increase it by the rate of inflation, with the idea that the market will continue to make up for your withdrawals.
It’s important to be able to tailor your income to your specific needs from year to year, as you never know what the future holds, for the market or for you personally. And while these options are great starting points, they can lack flexibility and don’t account for years with larger spending (like when you want to go on that big European vacation!).
Strategies for Your Summer Travels and Beyond
When planning for seasonal spikes in spending, such as a summer vacation, an option that might appeal is a bucket strategy.** This involves dividing your assets into distinct buckets. An example of this looks like:
- The Immediate Bucket (Years 1-2): This bucket should hold enough cash in high-yield savings or money market accounts to cover your lifestyle needs, including that big summer trip.
- The Intermediate Bucket (Years 3-10): This consists of more stable investments like bonds or CDs that can replenish your cash bucket.
- The Long-Term Bucket (Years 11+): These funds remain in assets geared towards long-term growth, with the goal of allowing your future wealth to continue to compound.
This is just one of the many ways to start thinking about how to construct your own tailored bucket strategy. You can also utilize a dynamic withdrawal strategy within this framework that allows for larger withdrawals when the market is performing well and uses those better-performing years to fund lifestyle changes or vacations.
However, moving assets between buckets can trigger unintended tax consequences if not coordinated with your overall strategy, so it’s important to consult with your financial professional about your goals and plans.
Why Planning Ahead in Pre-Retirement Matters
Thinking about where your income will come from once you stop receiving paychecks is something to consider sooner rather than later. Building your income plan out as many as five or ten years ahead of retirement can help you make some potentially impactful moves, such as:
- Roth Conversions: Moving money from a traditional IRA to a Roth IRA during lower-income years can create a pool of tax-efficient wealth.
- Tax Diversification: Ensuring you have a mix of taxable, tax-deferred, and tax-free accounts so you can choose the most appropriate source of income each year for your specific goals.
- Avoiding the 59½ Trap: If you intend to retire early, making a liquidity plan can help you avoid the 10% early withdrawal penalty of most retirement accounts.
Your Summer, Simplified
We can help you focus on your retirement goals and navigate the complexities of tax planning. By coordinating your withdrawals, managing your tax brackets, and maintaining a cash buffer for your lifestyle goals, you can confidently enjoy your summer plans.
Successful retirees plan for both building and utilizing their savings, so if you haven’t yet mapped out your retirement income plan, now is the time to consult with a financial professional. Let us help you tailor your financial situation to both your short and long-term goals for a happy summer and beyond.
Sources:
https://www.journalofaccountancy.com/issues/2026/jan/tax-efficient-drawdown-strategies-in-retirement/
https://www.usbank.com/retirement-planning/financial-perspectives/retirement-withdrawal-strategies.html
https://www.usbank.com/retirement-planning/financial-perspectives/managing-retirement-during-market-downturns.html
*No strategy can guarantee a profit or protect against loss.
**This strategy may utilize annuity contracts, which are long-term insurance products.
All investing involves risk, including the potential loss of principal. No investment strategy, including tax diversification or withdrawal “rules of thumb,” can guarantee a profit or protect against loss in periods of declining market values. Past performance is not indicative of future results.
This material was prepared for general informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. A Roth IRA conversion is a taxable event and may have several tax implications. You should consult your own tax, legal, and accounting professionals before engaging in any transaction.
If this strategy utilizes insurance products, such as annuities: Annuities are long-term insurance products designed for retirement. They are subject to fees, expenses, and surrender charges. All guarantees and protections are backed solely by the financial strength and claims-paying ability of the issuing insurance company.
Withdrawals are subject to ordinary income tax and, if taken before age 59 ½, a 10% federal penalty may apply.
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Annuity vs Index Fund – What’s the Difference?
In the investment world, there are multiple vehicles available to help individuals work toward their retirement income goals. Two such instruments are annuities and index funds. While they both play a part in a balanced portfolio, they are fundamentally different.
Are Annuity Misconceptions Hurting Your Retirement?
When you think about retirement income, Social Security might be the first thing that comes to mind. But many pre-retirees are realizing that Social Security was never designed to replace a full salary. In fact, it typically replaces only about 40% of pre-retirement earnings. To bridge that income gap, many who are considering annuities hesitate to follow through because of misconceptions about them.
Some concepts are often so culturally ingrained that we stop questioning if they are actually true, and annuities sometimes fall into that category. If you’ve heard they are too expensive, too complex, or that your money disappears when you die, it’s time to understand the facts.
Myth #1: “Annuities Are Only for People Already Retired”
The Reality: Annuities can be a powerful tool for savers, not just spenders. While immediate income annuities are known for providing a potential income stream in retirement, deferred annuities are designed for the accumulation phase. If you have already maxed out your 401(k) or IRA contributions for the year, a deferred annuity offers an additional vehicle for tax-deferred growth with generally no annual IRS contribution limits. By starting early, you can help your earnings compound over time before eventually converting them into an income stream when you decide to retire.
Myth #2: “Annuities Are Too Expensive and Too Complex”
The Reality: Annuities are only as complicated as you make them, and you pay for the protection you choose. The high-fee reputation often comes from complex products with multiple riders and additional benefits. However, many modern annuities have simple structures and are low-cost with nominal annual fees.
When evaluating costs, it can be helpful to compare the fee against the value of the risk you are offloading. Are you paying for market protection? A contractually required death benefit? Lifetime income that you can’t outlive? In many cases, these fees are intended to be competitive with other managed investment accounts that don’t offer the same benefits. In short, you get what you pay for.
Myth #3: “If I Die Early, the Insurance Company Keeps My Money”
The Reality: Your beneficiaries can be protected. A common concern regarding annuities is the potential for the total payments received to be less than the initial investment if the owner’s lifespan is shorter than anticipated. However, it is important to consider how different payout options and riders can mitigate this risk. While a “life-only” payout stops when you pass away, many modern annuity contracts can offer options like “period certain” or “joint and survivor” payouts. If you pass away prematurely, these are designed to deliver payments to your spouse or beneficiaries for a set number of years or for the rest of their lives. So, in addition to providing a stream of income while you’re alive, annuities can help protect your legacy.
Myth #4: “You’re Better Off Investing in the Market”
The Reality: Annuities and market investments serve different purposes. Investing in the stock market can be risky as you approach your full retirement age because while the market can offer potential for growth, it doesn’t offer a floor. Fixed annuities can help provide a hedge against market volatility by providing an income baseline that tends to fluctuate less if the market dips.
Like Social Security, think of an annuity not as a replacement for your portfolio but as one of the pillars of a comprehensive retirement plan. By covering your essential expenses like housing, food, and healthcare with consistent income from an annuity and Social Security, you can build a foundation of financial independence that helps provide the flexibility to invest other assets for long-term growth.
Myth #5: “My Money is Locked Up with an Annuity”
The Reality: Liquidity concerns with annuities are common, but liquidity and flexibility are built into many contracts. While annuities do have “surrender periods” (a set number of years you must wait to withdraw the full amount without penalty), many contracts are not entirely illiquid. Some allow you to withdraw up to 10% of the account value each year penalty-free. Once the surrender period ends, you have full access to your contract value.
Understanding Your Unique Situation
Just as a Social Security strategy depends on your unique birth year and goals, an annuity strategy depends on your specific income gap. In our current economic environment, an annuity can help provide clarity and help reduce the stress of market watching.
Ready to see if an annuity fits into your personalized retirement plan? Don’t allow fear or outdated myths to limit your options in retirement. Scheduling an appointment with our team could help strengthen your retirement strategy, so call us today.
Sources:
https://www.retireguide.com/annuities/myths/
https://www.investopedia.com/articles/retirement/08/annuity-mutualfund.asp
https://www.annuity.org/annuities/
https://www.annuity.org/annuities/common-mistakes/
Add disclosure- This information is provided as general information and is not intended to be specific financial guidance. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. Annuities are designed to meet long-term needs for retirement income. They provide guarantees of principal and credited interest, subject to surrender charges, and a death benefit for beneficiaries. This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not intended to provide specific legal or tax advice and cannot be used to avoid penalties or to promote, market, or recommend any tax plan or arrangement. You are encouraged to consult your personal tax advisor or attorney. Although external indexes may affect contract values, the contract does not directly participate in any stock, bond, or investments. You are not buying any bonds, shares of stocks, or shares of an index. This presentation is not endorsed or approved by the Social Security Office or any other Government Agency. Withdrawals are subject to ordinary income tax and, if taken before age 59 1/2, a 10% federal penalty. Withdrawals will reduce the contract value and other benefits under the contract. SWG 5430433-0426
A Guide to Fixed-Indexed Annuity Riders
An annuity rider is an add-on or supplement to a standard annuity contract. These riders allow the contract holder to customize their annuity to better cater to their specific needs or goals. Annuity riders come in various forms and can provide additional income, death benefits, and long-term care benefits, among others.
Annuity Dos and Don’ts
Annuities can be a significant component of retirement planning, offering a source of retirement income. However, to understand the features of annuities, it’s essential to understand the dos and don’ts before purchasing one.
Annuity Awareness Month: Helping Bridge the Social Security Gap
June is typically recognized for the start of summer, which means graduation ceremonies, homebuying season, and wedding season. But for those who are thinking about their financial future, June also represents Annuity Awareness Month. Created by the National Association for Fixed Annuities (NAFA) and supported by financial professionals nationwide, this month-long campaign is dedicated to educating consumers about the role annuities can play in a financially healthy retirement strategy. As the “three-legged stool” of retirement (Social Security, pensions, and personal savings) continues to shift, understanding your options can make the difference between uncertainty and stability in retirement.
This June, we are starting a conversation about how annuities can help bridge the retirement income gap millions of Americans face.
The Changing Landscape of Retirement
For previous generations, retirement planning was often straightforward. You worked for 30 years, received a gold watch, and retired with a monthly pension check that, combined with Social Security, covered most of your expenses.
Today, that landscape has transformed. According to the Social Security Administration, private-sector defined benefit pensions have become increasingly rare, replaced by defined contribution plans like the 401(k) and IRA. This shifted the risk of retirement planning from the employer to the employee. If the market dips the year you retire, or if you outlive your savings, the responsibility falls squarely on your shoulders.
Yet many Americans overestimate Social Security’s efficacy as a safety net and don’t realize that it’s only designed to replace approximately 40% of the average worker’s pre-retirement income. Is 40% enough to maintain the standard of living you’ve worked so hard to pursue? Are you prepared to fill the remaining 60% gap with personal savings and investment vehicles?
If not, this is where annuities can help.
What Exactly Is an Annuity?
An annuity is essentially a contract between you and an insurance company. In exchange for a lump sum or a series of payments, the insurer commits to making periodic payments to you, beginning either when you purchase the contract (immediate) or at some point in the future (deferred). While annuities may offer tax-deferred growth and regular income, their primary function is the mitigation of longevity risk, or the risk of outliving your money, as some annuities come with lifetime features.
Filling the Gap: Why Annuities Can Make Sense
If Social Security only covers 40% of your needs and the traditional pension is a relic of the past, how do you sustain your lifestyle through retirement?
Annuities can fill that gap because they provide regular income—something that many defined benefit plans offered. So, by converting a portion of your retirement savings that, say, used to be in a defined contribution account into an annuity, you can start to fill that regular income gap. This allows you to cover your essential expenses (mortgage, healthcare, groceries) with predictable checks. And with a lifetime benefit annuity, that regular income can do even more to support Social Security income.
Potential Features of Annuities
Like any financial vehicle, annuities are not a universal solution. So, it’s important to weigh the advantages against the limitations.
The tax-deferred growth feature of an annuity means you don’t pay taxes on the interest earned until you start taking withdrawals. This allows your principal to earn interest, your interest to earn interest, and the money you would have paid in taxes to also earn interest.
Another powerful feature of many modern annuities is the lifetime income rider. As life expectancy increases, so does longevity risk, and many retirees fear that a longer life could lead to a depleted bank account. By triggering an income rider, you can establish a source of income that is contractually required to last as long as you (or your spouse) are alive, no matter how long that may be or what the stock market does.
Annuities can also lessen the risk against market volatility while still participating in the market in the form of a fixed-indexed annuity (FIA). FIAs present the added benefit of being able to link your growth to a market index like the S&P 500. If the market goes up, you receive a portion of the gains. If the market goes down, your principal is protected from market losses. The concept of protection with upside potential is a cornerstone of many modern retirement plans.
And if you’re considering leaving assets to heirs, some types of annuities can potentially assist the estate planning process by enabling the direct transfer of assets to beneficiaries while bypassing the costly and lengthy probate process.
But there can be downsides to annuities, too. Since annuities are long-term vehicles, many of them have liquidity limitations and come with penalties if you try to make an early withdrawal. And unless you purchase a specific inflation or cost-of-living adjustment (COLA) rider, the purchasing power of a fixed payment may decrease over decades.
Why Guidance Matters
This Annuity Awareness Month is a reminder that financial literacy is an important step toward financial security in retirement.
If you are relying on just 40% of your pre-retirement income via Social Security or a volatile stock market to sustain your retirement lifestyle, it might be time to add stability with an annuity. By choosing the annuity structure that best fits your goals and transferring the risk of outliving your money to an insurance company, you can insulate your retirement from market volatility and create your own source of income for life before you retire.
While annuities are highly customizable and can be tailored to your specific stage of life, the variety of riders, caps, participation rates, and many other specifications can be confusing without professional help. That’s why we’re using Annuity Awareness Month to educate our clients on how annuities might fit into their retirement strategy. An advisor can help you navigate the customizability and complexity of these contracts and determine strategies to calibrate your portfolio based on your unique goals, risk tolerance, and family needs.
For example, you might use a 401(k) for growth, a high-yield savings account for emergencies, and an annuity to provide the regularized income that Social Security often leaves incomplete and underfunded. The important thing to remember is that while an annuity can be a useful component of a diversified strategy, it’s only one piece of the retirement puzzle.
This June, take a moment to look at your retirement portfolio. Is it balanced? Does it leave you feeling secure in your financial future? Let’s start the conversation. Contact us today to see how an annuity could help you work toward the retirement you earned.
Sources:
https://www.ncoa.org/article/how-much-of-my-income-will-social-security-replace/
https://www.ssa.gov/policy/docs/issuepapers/ip2017-01.html
https://annuretirement.com/
https://www.annuity.org/annuities/riders/cost-of-living/
https://www.annuity.org/annuities/riders/
https://smartasset.com/retirement/annuity-income-rider
This material is for educational purposes only and is not intended to serve as the basis for any purchasing decision. It should not be construed as individualized investment advice. Any information provided may result in contact by an insurance agent. Annuities are long-term financial vehicles designed for retirement purposes. They are not bank products, are not FDIC insured, and involve certain risks. Fixed Indexed Annuities (FIAs) provide protection of premium and guaranteed interest rates, but do not directly participate in the stock market. The interest credited is limited by caps, participation rates, and spread rates, which are subject to change at the company’s discretion. All guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Investing involves risk, including the potential loss of principal. Withdrawals are subject to ordinary income tax and, if taken before age 59½, a 10% federal penalty may apply. This information is not intended as specific legal or tax advice; please consult a professional regarding your individual situation. The source(s) used to prepare this material are believed to be true, accurate, and reliable, but are not guaranteed. SWG5430448-0426
Taxes are deferred until withdrawals begin
2 Guarantees are backed by the claims-paying ability of the insurer
Annuity Awareness Month: Understanding Annuities and Their Role in Retirement
In honor of Annuity Awareness Month, this article provides insight into annuities and how they may fit into a retirement income strategy. Annuities may seem complex, but with a clearer understanding of their basics, types, and role in generating retirement income, one can assess whether they are a suitable component for their portfolio.
Values-Based Investing: From Trend to Strategic Alignment
You’ve likely seen it while scrolling through your 401(k) options or during a quick check of your brokerage account: a little leaf icon next to a fund labeled ESG. Initially, ESG was presented as a revolutionary framework, gaining significant traction as investors sought to align their capital with broader social and environmental goals. This rise was fueled by a growing demand for corporate accountability and a belief that ethical considerations could be seamlessly integrated into traditional financial analysis.
Today, however, ESG is facing a cooling-off period due to a lack of scoring standardization across industries, accusations of greenwashing, and, in some cases, performance has differed from traditional benchmarks. As we look at the landscape today, we have to ask: Did ESG fail, or is it simply becoming something more permanent and practical? And is there a way to help your money work for your financial future and your principles simultaneously?
Values-Based Strategies Options
Values-based investing is not a single methodology but a broad spectrum of approaches designed to meet different objectives. Let’s look at some of the options:
- Socially Responsible Investing (SRI): This approach uses what’s known as negative screening to exclude specific industries or companies from a portfolio based on ethical criteria, such as avoiding tobacco, weapons, or gambling.
- Impact Investing: Unlike exclusionary strategies, impact investing is intended to generate measurable social or environmental effects alongside the potential for financial return.
- Faith-Based Investing: This strategy aligns investment decisions with the specific religious tenets or moral teachings of a faith tradition, ensuring that the growth of wealth does not conflict with spiritual convictions.
- Thematic Investing: This focuses on long-term macro trends, such as the transition to renewable energy or the ethical development of artificial intelligence, allowing investors to capitalize on specific shifts they believe are vital for the future.
Limitations of Standardized Methodology
As mentioned before, one of the primary critiques of the early ESG movement was the reliance on aggregate scoring. Most ESG-labeled funds utilize third-party data providers that assign a single score to a company by averaging various environmental and social metrics. This single score averages out everything from a company’s carbon footprint to how many women are on its board.
This introduces a bit of an issue for the investor. Personal values are unique and specific, but the scoring of mass-market funds is not. For example, a fund may receive a high ESG rating due to its carbon neutrality, yet it may hold companies with governance structures or labor practices that an individual investor finds objectionable.
Furthermore, these funds rarely allow for nuanced weighting. For example, if an investor prioritizes domestic manufacturing over board diversity or if you care 90% about clean water and only 10% about executive pay, a standard ESG fund cannot adjust its composition to reflect those specific priorities. The result is often a portfolio that reflects a generic data provider’s definition of good rather than the investor’s actual principles.
Values as a Proxy for Risk and Resilience
Modern values-based investing has evolved beyond moral preference and may serve as one consideration in evaluating legal and economic resilience. This can help align personal values with a more robust financial portfolio. For instance, companies that proactively address their environmental impact or labor relations are often better positioned to navigate shifting regulatory landscapes, which may influence how some investors evaluate long-term risks. This approach differs from traditional ESG aggregation because it focuses on strategic alignment:
- Global Compliance: Investing in companies that meet or exceed international standards, reducing the risk of sudden regulatory fines or market exclusion.
- Reputational Capital: Recognizing that in a transparent digital economy, companies with high ethical standards may maintain stronger brand loyalty and lower employee turnover, which some investors consider when evaluating long-term business performance.
- Future-Proofing: Aligning a portfolio with the inevitable transition toward sustainable energy and ethical technology, which some investors believe may be more resilient over time.
While this incorporates some ESG data points, it treats them as individual risk factors rather than a diffused average. Instead of buying a bundle, you are identifying specific risks and opportunities that align with your worldview.
How We Can Help
We’re here to help integrate your values-based choices in a way that remains focused on your ultimate goals and complements your financial strategy. We can help you find the opportunities that fit your risk tolerance and your values.
As we celebrate World Environment Day this Friday, perhaps this could be the right time to ask whether your money is working for the world you want to see.
If you’d like your values to be reflected in your financial plan, talk to us today about how that may be possible for your financial situation.
Sources:
https://www.forbes.com/sites/jbrewer/2025/07/15/should-you-build-your-retirement-through-values-based-investing/
https://informationstation.org/kitchen_table_econ/what-is-an-esg-score/
https://www.kiplinger.com/investing/esg/what-is-esg
https://www.cnbc.com/2026/03/17/2026-just-capital-rankings-where-ceos-are-investing-in-post-esg-era.html
https://digitaldefynd.com/IQ/is-esg-failing/
The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. This material is for informational purposes only and should not be construed as investment advice. Investing involves risk, including possible loss of principal. Values-based or ESG investing may limit investment opportunities and cause performance to differ from the broader market.
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Understanding Spousal Social Security: Key Points to Know
Spousal Social Security can be an important component of retirement planning, providing income to the spouse who either did not work or earned less during their working years. Understanding its nuances, eligibility conditions, and potential impact on one’s retirement income can help for effective financial planning. This article aims to unravel some of its key aspects.
Celebrating 529 Day: A Look at Education Savings
May 29th is quickly approaching, so let’s celebrate 529 Day with a look at this unique financial tool and how it could help benefit you or your family. A 529 plan is a tax-advantaged investment account designed to help save for future education expenses. So whether you’re considering how to set a grandchild up for college education or considering a career pivot for yourself, a 529 plan may be something to consider in your financial strategy.
A Quick Trip Down Memory Lane
While it feels like they’ve been around forever, Congress actually created the 529 plan relatively recently, back in 1996. Over the last three decades, these accounts have evolved from simple college-savings buckets into versatile, multi-purpose accounts that help support a wide range of educational paths.
Why a 529 Plan is a Key Advantage for Your Savings
The benefits of a 529 plan can go beyond just saving for a university degree. Here are some of the financial benefits of these plans:
- Tax Efficiency: Your investments grow tax-deferred.
- Tax-Free Growth: When you’re ready to use the money for qualified education expenses, withdrawals are generally free from federal income tax.
- Openness & Flexibility: There are no income restrictions for you as the contributor or for the beneficiary. Additionally, there is no limit to the number of plans you can set up! You can also set up a 529 in whichever state you prefer; you aren’t limited to the one you live in. Just remember that in-state 529 plans may offer tax deductions or credits that are not available if you choose a plan from another state.
Flexibility for Every Life Stage
One of the biggest misconceptions is that 529s are only for traditional four-year colleges. In reality, they can be incredibly adaptable:
- K-12 Education: You can use up to $20,000 annually for tuition expenses at elementary or secondary public, private, or religious schools.
- Diverse Career Paths: Funds can be used for trade schools or apprenticeship programs that participate in Title IV federal student aid programs. If you aren’t sure if a school qualifies, you can use the Federal School Code Search provided by the U.S. Department of Education.
- Broader Expenses: Beyond just tuition, you can pay for books, fees, classroom supplies, electronics (like a laptop), and even reasonable room and board.
What If Plans Change?
If the original beneficiary decides not to use the funds, you don’t lose that hard-earned progress.
- Family Transfers: You can transfer the funds to another qualified family member.
- The Account for Everyone: You can name anyone as a beneficiary—a relative, a friend, or even yourself if you’re eyeing a graduate degree.
- Roth IRA Rollover: This is a game-changer! You can roll over up to $35,000 in unused 529 funds to a Roth IRA tax-free and penalty-free.
- Note: The account must be at least 15 years old, and annual rollovers are limited to $7,500 (or $8,600 if you are age 50 or older).
Making the Most of 2026 Limits
If you already have an account and are looking to boost your 529 contributions this year, 2026 offers some generous gift tax limits. You can gift up to $19,000 as an individual (or $38,000 for married couples filing jointly) into a single plan without it counting against your lifetime gift tax exemption.
While there are no annual federal contribution limits, most states have lifetime caps per beneficiary, typically ranging from $235,000 to $575,000, so be sure to check with a qualified professional from the state you have your 529 in.
Let’s Help Secure Your Legacy
Education is one of the greatest gifts you can give, but it’s just one piece of your larger financial puzzle. We’re here to help your 529 strategy work alongside your long-term goals and retirement plans.
Ready to see how a 529 plan fits into your bigger picture? Reach out today, and let’s start building a strategy that helps secure your family’s future.