Privacy Notice

We recognize the importance of protecting our clients’ privacy. We have policies to maintain the confidentiality and security of your nonpublic personal information. The following is designed to help you understand what information we collect from you and how we use that information to serve your account.

Categories of Information We May Collect

In the normal course of business, we may collect the following types of information:

Information you provide in the subscription documents and other forms (including name, address, social security number, date of birth, income and other financial-related information); and

Data about your transactions with us (such as the types of investments you have made and your account status).

How We Use Your Information That We Collect

Any and all nonpublic personal information that we receive with respect to our clients who are natural persons is not shared with nonaffiliated third parties which are not service providers to us without prior notice to, and consent of, such clients, unless otherwise required by law. In the normal course of business, we may disclose the kinds of nonpublic personal information listed above to nonaffiliated third-party service providers involved in servicing and administering products and services on our behalf. Our service providers include, but are not limited to, our administrator, our auditors and our legal advisor. Additionally, we may disclose such nonpublic personal information as required by law (such as to respond to a subpoena) or to satisfy a request from a regulator and/or to prevent fraud. Without limiting the foregoing, we may disclose nonpublic personal information about you to governmental entities and others in connection with meeting our obligations to prevent money laundering including, without limitation, the disclosure that may be required by the Uniting and Strengthening America Act by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 and the regulations promulgated thereunder. In addition, if we choose to dispose of our clients’ nonpublic personal information that we are not legally bound to maintain, we will do so in a manner that reasonably protects such information from unauthorized access. The same privacy policy also applies to former clients who are natural persons.

Confidentiality and Security

We restrict access to nonpublic personal information about our clients to those employees and agents who need to know that information to provide products and services to our clients. We maintain physical, electronic and procedural safeguards to protect our clients’ nonpublic personal information. We respect and value that you have entrusted us with your private financial information, and we will work diligently to maintain that trust. We are committed to preserving that trust by respecting your privacy as provided herein.

Off to College — With Peace of Mind

Back-to-school is bittersweet in our home this year: my oldest is heading off to college. This milestone brings a whirlwind of emotions. One thing I’m grateful not to worry about is how we’ll pay for college. My husband and I established a 529 plan not long after Jack was born. Additionally, both sets of grandparents set up separate plans and have diligently contributed over the last 18 years.

Taking our first redemptions out of these plans got me thinking about the 529 plan lifecycle and how to help others make the most of this powerful tool.

The Basics

Many of you are familiar with 529 plans, which have been around since the late 1990s. They’re a popular way to save for college and, increasingly, for K-12 educational expenses. Contributions grow tax-deferred at the federal and state levels, and withdrawals for qualified educational expenses are tax-free. Many states also offer state income tax deductions or credits for contributions.

Over the last decade, Congress has expanded the flexibility of 529s, broadening what counts as a qualified expense. The One Big Beautiful Bill further expanded the definition of qualified educational expense to include K-12 curriculum materials, standardized test fees, dual-enrollment fees, online educational resources, tutoring, and specialized services for students with disabilities. These changes are effective immediately. In 2026, the cap on K-12 tuition withdrawals will increase from $10,000 to $20,000.

The ability to save for education in a tax-efficient way is invaluable. However, overfunding should be avoided. Up to $35,000 in unused 529 funds can now be rolled into a Roth IRA for the beneficiary and excess funds can be transferred to a sibling or cousin. But withdrawals for non-qualified expenses are subject to income tax on earnings and a 10% penalty. This would mean an effective tax rate exceeding 50% for those in the top brackets.

Opening a New 529 Plan / Things to consider

What tax incentives does your state offer?
Many states provide income tax deductions for contributions. But states without income tax (e.g., Texas, Florida) offer no income tax savings. Conversely, high-tax states like California don’t allow deductions for 529 contributions. If your state provides no tax incentive, it is worth exploring plans offered by other states. You are not limited to using the 529 plan offered by your state of residence.
What investment choices are available?
Each state offers different investments, typically including target-date funds and other options. Costs and quality vary significantly. If your state doesn’t offer tax benefits or has subpar investment options, consider another state’s plan.
How much should you save?
Use a college savings calculator, like Schwab College Savings Estimator, to estimate costs and set contribution goals. The calculator requires that you specify certain assumptions including what type of school your child will attend, how much of the cost you wish to cover, and what investment returns you expect. Other issues to consider include:
- Will grandparents or other family members be contributing to a 529 plan for your child? 529’s are an effective estate planning tool providing a tax efficient means to transfer wealth to another generation.
- Will your child attend public or private K-12 school (note the $20,000 K-12 tuition cap starting in 2026)? If so, you will want to increase your contributions accordingly.

Growing Your 529 / Mid-Life Stage

Revisit your savings plan every few years or more often as your child’s college plans become clearer. You may need to adjust contributions or investment choices based on updated goals or circumstances.

Taking Distributions

Assess your funding status relative to anticipated costs.
Consider potential graduate school plans.
Evaluate whether siblings have excess or insufficient funds and how that impacts the family’s overall college financing strategy.
Did your child receive a scholarship? If so, you are permitted to withdraw the amount of the scholarship from the 529. It will be subject to income tax, but not the 10% penalty.
Determine if your child will live on or off campus and be familiar with the school’s official cost of attendance (COA). Withdrawals for off campus room and board that exceed the COA will be subject to income tax and the 10% penalty.
Review your state’s definition of a qualified educational expense. Some states have not adopted all federal rules.
Ensure that distributions and payments match by calendar year, not school year.
Keep meticulous records. Using a dedicated credit card for qualified expenses can simplify tax preparation.

We didn’t follow every 529 best practice perfectly or as consistently as we might have hoped, but I’m grateful we started early and stayed the course. Thanks to our 529 plans, we’re entering this new chapter with financial security and peace of mind.

At Visible Wealth Planning, we use tools like 529 plans to help clients confidently plan for their financial futures.

Meg Connelly
Chief Investment Officer

Download the guide here.

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