STS Business Partner Newsletter

Spring is in the Air and our Partners are here to help you!

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STS Spring Golf Tournament

Saturday, April 25th, 1pm

43237 Golf View Drive

Chantilly, VA

RSVPs are enabled for this event.

How much is college going to cost? When is the best time to start saving?

Saturday, April 11th, 9:30am

13809 Poplar Tree Rd

Chantilly, VA

How much is college going to cost? When is the best time to start saving?


Will you son or daughter be the next CEO, Doctor, Engineer, or chemist who discovers the cure to cancer?


In order to do so, they will likely need a college education and more! But with college becoming more and more expense, what is a parent to do with those rising tuitions and expenses?


Many turn to the 529 College Savings plans! And for good reason.


In 1996, Congress passed and the president signed the law that allowed for deposits into a college savings plan that provided excellent tax benefits and growth for the purpose of paying for college.


The most important tax break comes in the form of forgiveness on the growth of the money deposited, when used for qualified education expenses.


Let me give you an example. If over time, you deposited $10,000 into your child's 529 plan, and that money grew to $15,000, the $5,000 growth would normally be subject to taxes, either ordinary income or capital gain. But if this $5,000 gain is used for qualified expenses, then federal tax law allows for that money to be withdrawn tax free. This can be very important!


So what are 'qualified expense'? Under the tax code, qualified expenses for college include:

tuition

room and board

mandatory fees

text books

mandatory equipment (like computers)

other fees (like lab fees)


As you can see, there are many positives associated with the 529.


At the same time, there are some concerns. What if the child does not go to college? What if they receive a partial or full scholarship?


In general, when money is removed from the 529 and not used for qualified expenses, the gain is taxable at the owner's ordinary income tax rate AND there is a 10% federal penalty. Exceptions would come if there is a scholarship. Then the amount of the scholarship is able to be removed without the penalty, but ordinary income tax would apply.


There are other considerations and limits, but in general, the 529 can be an important planning tool to help pay for college!


To learn more, please join us on

Saturday, April 11th

9:30 a.m.


in the Father McGivney Room to learn more!

RSVPs are enabled for this event.

Hilton has Special offers running all the time! They even have an Easter Brunch!! Check it out!

Looking for Hotel Rooms for your guests?

Hilton Washington Dulles Airport Hotel has special offers!

Did you know that the Hilton Washington Dulles runs specials all the time. If you would like to book any rooms please use the STS Promotion Code: N3034254 (Also, if you have a last minute request or need for rooms, you can save big money checking on their room availability - sometimes it can be up to 50% savings!!) The current rates are from $79 on weekends and $119 weekday based on availability.

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