How does SMART529 work?
For example, with SMART529, withdrawals for qualified higher education expenses are free from federal income tax and West Virginia Personal Income Tax. Non-qualified withdrawals are taxable as ordinary income to the extent of earnings, and may also be subject to a 10% federal tax penalty.
How do I open a 529 plan in West Virginia?
Take these steps to open your SMART529 WV Direct college savings account.
- Choose your investment options.
- Read the SMART529 Offering Statement.
- Gather all required bank and personal information.
- Open your account.
What can SMART529 be used for?
Your SMART529 account can be used to cover qualified higher education expenses at thousands of eligible institutions throughout the country, including colleges, universities, vocational schools, and private and religious K-12 schools.
What are the 3 WV 529 plans?
West Virginia also offers three 529 savings plans, the SMART529 Direct, SMART529 Select and The Hartford SMART529 plans.
What is a smart 529 plan?
A 529 plan is a tax-advantaged savings plan designed to encourage families to save for college. Earnings on 529 investments accumulate tax-free, and distributions are tax-exempt as long as they are applied toward eligible education expenses such as tuition and room and board. 1. Open Account >
What is a WV 529 plan?
SMART529 is West Virginia’s official tax-advantaged education savings plan. The program is designed to encourage families to save for education beyond high school. Earnings on SMART529 investments accumulate tax-free, and distributions are tax-exempt, as long as they are used for eligible education expenses.
What is a Form 529?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.
What state sponsors the Hartford SMART529 college savings plan?
SMART529 is offered by the West Virginia Prepaid Tuition and College Savings Program Board of Trustees and is administered by Hartford Funds Management Company, LLC (“HFMC”).
What are the tax advantages of a 529?
529 plan investments grow on a tax-deferred basis and distributions are tax-free when used to pay for qualified education expenses, including college tuition and fees, books and supplies, some room and board costs, up to $10,000 in K-12 tuition per year and up to $10,000 in student loan repayment per beneficiary and …
How to apply for a smart 529 savings account?
Another savings account such as a mutual fund, bank account, CD or any other type of account to an existing account. If you do not have an existing account with the SMART529 program, please Open an Account online or complete and mail a new Account Application form.
Can a notary sign a smart 529 form?
Unless authorized, SMART529 limits access to information on any account as well as the ability to make discretionary transactions to the Account Owner and employees of the Program Manager and its affiliates. Select the Authorization Level you wish the RIA to have and sign the form under the witness of a Notary.
Can you add a ria to a smart 529 account?
Use this form for adding a Registered Investment Advisor (RIA) and adding Trading Authority to this account. Unless authorized, SMART529 limits access to information on any account as well as the ability to make discretionary transactions to the Account Owner and employees of the Program Manager and its affiliates.
What is included in offering statement for smart 529?
The Offering Statement provides descriptions of the underlying funds, risks and considerations, and the participation agreement. You are applying for a SMART529 Select Account where the Account Owner and/or Beneficiary will be a trust.