Market is bifurcated below the surface, says Truist's Keith Lerner
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CNBC
5 hours ago
- CNBC
Trump's budget bill made 529 college savings plans even more powerful—here's what it means for your money
The so-called "big, beautiful" budget bill made headlines for, among other things, introducing a new type of investing account that parents could open on behalf of children under 18. For U.S. citizens born from 2025 through 2028, the government will seed the portfolios, which have come to be known as Trump accounts, with an initial contribution of $1,000. It's easy to see why the accounts took the spotlight — free money is free money. But if you're a parent looking to save money for your child's education in particular, the bill also quietly made an investment vehicle designed to do precisely that, more flexible. When it comes to saving for child's education, "a 529 account is the only account that is both tax-deferred and tax-exempt," as long as you put the money toward a qualified educational expense says Tai Kim, a wealth strategist at Truist Wealth. "And that definition has been ever-growing." Under the new bill, accounts that were originally designed to let families save for higher education costs now support an even larger swath of education and career-related costs. Here's how the accounts work, and what expenses now qualify. Named for a section of the tax code, 529 accounts were originally designed to help parents and students cover the cost of a college education and are administered by state governments. Each state, except Wyoming, offers at least one plan. Contributions to these accounts are subject to federal income tax, but, depending where you live, could be exempt from state tax. Money you deposit into these accounts can be invested into a portfolio of mutual funds and grows tax-free. And, provided you put money you withdraw toward qualified educational expenses, you won't owe the government anything when you take the money out. Earnings withdrawn for non-qualified costs are subject to tax and a penalty, and up until recently, that meant anything that wasn't related to higher education. In recent years, though, more and more expenses have qualified, including K-12 education costs, trade school and apprentice expenses up to $10,000 in student loans. The recently passed bill further expands the scope of education and training costs that you can use 529 money for tax-free. These include: Generally, to qualify, programs must be approved by credentialing organizations or listed in a state-maintained Workforce Innovation and Opportunity Act directory or the Veteran Affairs Department's Web-Enabled Approval Management System. A common concern that parents have when opening a 529 account, Kim says, is that their child won't find a use for the money. That the funds can be withdrawn tax-free for a broader range of educational and professional expenses, with the expansion of the benefits — plus a provision that allows for a portion of unused funds to be rolled over into an IRA — can help assuage that fear. "We encourage clients to open a 529 plan as soon as the baby is born, or even before," she says. When exploring what plan might be best for you, the first consideration is whether you'll get a credit or deduction on your state income tax for contributing to your state's plan. If your state offers a generous break, investing in that plan is a "no brainer," says Kim. If your state doesn't offer a tax break, or if you live in a state without income tax, you may want to look elsewhere. You can open a 529 account under any state's plan, regardless of where you live. In fact, nine states provide state income tax breaks to residents regardless of whether they use an in-state or out-of-state plan. Sites like Saving for College and Morningstar have 529 rankings, which could help you narrow things down. In general, though, keep two things in mind, says Kim: "What it boils down to is investment options and fees." While virtually every state offers some version of a target-date mutual fund — a type of diversified investment that grows more conservative as you near a financial goal — some plans offer funds with better track records, more flexibility in building your portfolio and more modest costs, says Kim. Different states may also have different rules that could benefit your particular situation, say, around transferring beneficiaries if you have multiple children or gifting rules if grandparents are funding an account, Kim says. If you're not sure which plan is best for you, it may be wise to talk with a financial advisor about your options.
CNBC
a day ago
- CNBC
Tariff impact on CPI likely to grow in months ahead, says fmr. NEC Deputy Director Daniel Hornung
Daniel Hornung, Former Deputy Director for the National Economic Council, joins 'Closing Bell Overtime' to talk today's CPI print and what it is signaling about the economy.
Business Upturn
a day ago
- Business Upturn
Cariloop Named to Inc. 5000 List of America's Fastest-Growing Companies for the 4th Year in a Row
By GlobeNewswire Published on August 12, 2025, 22:10 IST DALLAS, Aug. 12, 2025 (GLOBE NEWSWIRE) — Ranked No. 2058 on the 2025 Inc. 5000 list, Cariloop continues to scale its impact with employer-sponsored caregiving benefits. Cariloop, the leading source for employer-sponsored caregiving benefits, is proud to announce its inclusion on the 2025 Inc. 5000 list of fastest-growing private companies in America, marking its fourth consecutive year on the prestigious national ranking. Cariloop earned the rank of No. 2058, with 112% revenue growth over two company also ranked No. 67 on the 2025 Inc. 5000 Regionals: Southwest list, marking its fourth consecutive appearance on that regional list.'Making the Inc. 5000 list once is an achievement. Earning a spot four years in a row speaks to the urgent need for better support for working parents and caregivers and the trust our customers and partners place in us,' said Michael Walsh, Cariloop CEO. 'We're honored to help companies care for the people behind their missions.' Cariloop's momentum is powered by its flagship solutions: the Caregiver Support Platform® and Backup Care. Together, they support nearly two million employees worldwide with personalized guidance from professional Coaches, expert-vetted tools and resources, and easy access to trusted providers for routine and Backup Care needs. Cariloop partners with employers to ease employee burnout, reduce turnover, and build a more productive workplace. 'This recognition says a lot about our team and the heart they bring to this work every day,' Walsh added. 'We're here to make caregiving less stressful—and more human—for as many people as possible.'Cariloop's mission is to relieve the stress and anxiety felt by all caregivers. With growing momentum nationwide, the company continues to scale its impact and evolve how modern benefits meet the real needs of today's the full list at About Cariloop Cariloop offers employer-sponsored caregiving benefits to working parents and caregivers. With professional Coaching, caregiving tools, and Backup Care through an intuitive Caregiver Support Platform, Cariloop reduces stress and burnout, helping employees find balance at work and home. By enabling organizations to support their workforce's caregiving needs, Cariloop drives higher productivity and improved retention. A proud Inc. 5000 company, Public Benefit Corp, and Certified B Corporation, Cariloop is committed to driving social impact while delivering exceptional results for employers. At Cariloop, we believe that no one should go through caregiving alone. For more information, visit Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
