This & That

This & That Cordell’s Corner: FAQs About 529 Plans for K-12 Students

This topic may look familiar, since we presented this information originally in 2018. Many of you are new to SCA, so we wanted to make sure you were aware of this beneficial tax-saving opportunity. It is also a reminder for you long-term SCA families to consider taking advantage of these 529 Plans as well, if you haven’t already done so.

What are 529 Plans?

They are special tax-advantaged investment accounts, originally designed to help families pay for college expenses. But, recently amended legislation now allows parents to use these plans to pay educational expenses at K-12 public, private, or religious schools as well.

Are contributions into 529 Plans tax deductible?

Yes, for state income tax purposes; however, each state has its own limits. In the State of Missouri, a state income tax deduction is available for annual contributions to 529 Plans of up to $16,000 for married couples filing jointly or $8,000 for single taxpayers. In Kansas, the state income tax deduction is available for up to $6,000 per plan for married couples filing jointly or $3,000 per plan for single taxpayers.

Is the income or earnings that accumulate inside 529 Plans taxable?

No, income and earnings that accumulate inside 529 Plans are not taxable for either federal or state income tax purposes.

Are withdrawals from 529 Plans taxable?

No, withdrawals for qualified educational purposes are not taxable if the withdrawals do not exceed $10,000 per year for each 529 Plan for K-12 students. There are penalties for excess withdrawals or for paying for nonqualifying expenses.

How can I set up a 529 Plan and what

does it cost?

Plans can be set up with any investment broker or directly with the State of Missouri (MOST 529 Plans) or the State of Kansas (Learning Quest 529 Plans). There are no fees for setting Cordell Dick up state-sponsored MOST Director of Major Gifts or Learning Quest 529 Plans; however, your financial advisor may charge a small fee to do so.

How long do funds need to be held in a 529 Plan before they can be withdrawn?

The legislation did not require a minimum time period for the funds to be held in a 529 Plan account before they can be withdrawn. Therefore, a family may withdraw funds that are needed to pay for qualifying educational expenses soon after the date of deposit without jeopardizing the income tax benefits of the plan.

Will my 529 Plan(s) change my SCA FACTS account?

No. Your FACTS tuition payment plan will remain in effect. You will be responsible for submitting reimbursement requests to your 529 Plan administrator for withdrawing qualified educational expenses. The 529 Plan should reimburse your personal account directly.

To learn more about 529 Plans go to the https:// www.missourimost.org/ for Missouri and https://www. kansasstatetreasurer.com/assets/files/education_ savings_FAQs.pdf for Kansas residents. If you have any other questions about 529 Plans or making a gift to Summit Christian Academy, please give me a call at 816525-1480, Ext. 421 or email me at cordelld@sca-kc.org.

This & That Elementary Celebrates Reader Leaders

SCA recently celebrated 13 Reader Leaders in first through sixth grades. These students took time from their summer to read a book from an approved list and completed a written summary and/or visual tool for the novel that they read. “I am so proud of these Reader Leaders for committing to reading, even over the summer months,” shared Elementary Principal Mrs. Charissa Sanders. “I tell them that those who read, lead. I look forward to seeing them lead at SCA and beyond!” The Reader Leaders were celebrated during a special luncheon with Mrs. Sanders. This is the eleventh year SCA has honored students through the Reader Leader program.

SCA first through sixth grade students were recently honored as “Reader Leaders” at a special luncheon. The school had 13 students who achieved this honor.

The SCA Difference

Mission – To inspire students to achieve their God-given potential through excellent academics and Christian training in a compassionate environment.

Vision – Summit Christian Academy is the school of choice for Christian families whose priority is excellence.

Values Proposition – A transformational education for each child - Refining and testing faith. Renewing the mind and proving truth. Revealing and equipping purpose. Increasing in wisdom and favor.

Philosophy of Education SCA believes that Christian education is a vital link in the successful rearing of children. It is the desire of the founders and staff of SCA to work together with the family and their church in reinforcing high moral values and the Christian lifestyle, while providing an excellent academic experience (Ephesians 5:22-33; Colossians 3:23; Genesis 2:18-25; Proverbs 9:10; Romans 1:21-27; Romans 12:1-21). SCA can never replace the significant spiritual impact of a godly home and church. The parents maintain the ultimate responsibility in spiritual matters, but the school can assist them by including sound biblical teaching and through the example and leadership of the faculty (Romans 8:29; Proverbs 1:7). To educate and prepare for life without including God as central to life does not fully prepare a child. The home, church, and school must work together to prepare children spiritually, morally, socially, and academically for their adult lives. The school’s primary responsibility is to provide the student with the necessary academic skills. This responsibility cannot be fulfilled in a spiritual vacuum. The school must also provide spiritual and moral direction in academic pursuits as well as personal life (John 8:32 and Romans 12:2).