Funding a Child's Future

A 529 plan is an investment tool designed to help save for college while offering a variety of tax benefits as well. Traditionally the person who is funding the plan opens the account (often a parent) and designates an individual (often a child) for whom the funds will be used. Plan beneficiaries can can attend any eligible school in the country and even some schools abroad. One key feature that makes a 529 plan unique to other college saving options is that the 529 savings plan is consider the asset of the account owner and not the beneficiary which means the investment will have less of an impact on student’s eligibility for need-based financial aid through FASFA. Additionally, a 529 college savings plan offers a great degree of control in that an account holder decides how to invest contributions, when to make withdrawals and to whom they will be paid — to yourself, the student or directly to the school.

Protecting Government Benefits for People with Disabilities & Their Families

South Dakotans with disabilities, and their families, may save and invest for expenses related to living with a disability without losing eligibility for federally and state benefits like Social Security and Medicaid. Annual contributions up to $15,000 can be made to an Achieving a Better Life Experience (ABLE) account. If spent on qualified disability expenses, earnings and withdrawals from an ABLE account are tax-free. ABLE accounts allow disabled South Dakotans to build financial wellness without jeopardizing their much-needed government benefits. Similar to a 529 college savings account and Roth IRAs, account options may include a checking or money market account and a variety of investment portfolios with varying degrees of risk.