FAQ: Education Savings Accounts

Frequently Asked Questions

Need assistance with data entry? RightCapital is here to help! Please use the common questions and answers below to assist you in generating financial plans. For additional assistance use the link to our support team at the bottom of the article.

1

Why aren't my 529 savings being applied in certain years?

Answer: If there is not enough available cash flow to cover the 529 savings the system will not fund the contribution. To override this, users can choose to deplete taxable savings to fund 529 or IRA savings by checking the methodology setting titled “Use taxable account to fund IRA and 529 savings when current year cashflow is inadequate”. 

2

Is there a difference in how RightCapital models UTMA’s, UGMA’s, Coverdell and 529 accounts? 

Answer: No, within RightCapital each of these education savings accounts will be viewed as college funding accounts that pay out to cover education costs.  

3

How do I model education costs for private schools? 

Answer: If you would like to model private school tuition, navigate to the Profile Goals section > Add Goal > pre-college. Input the applicable years and tuition amount. Any college savings accounts that are listed in the Net Worth will pay out $10,000 per year for private school costs. 

4

What is the impact of student borrowing or scholarships within the financial plan?

Answer: Student borrowing and scholarships will reduce the total college costs within the financial plan. RightCapital will not build out the amortization schedule for student borrowing listed in the Education module or the Education goal cards.

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