3Rivers Blog

Why Right Now is Right for a 529 College Savings Plan

Posted on Thursday, November 13, 2014

One of the best tools for helping give the gift of a college education is a 529 college savings plan. They were established to help people save money for students' post-secondary or higher education at eligible schools across the country.

529 College Savings Plan | Image source: Shutterstock.com / Photographer: Edyta Pawlowska

In addition to the many attractive features and benefits, 529 plans have become one of the most popular ways to save for college. For example, a 529 plan features:

  • Tax Advantages: Tax-deferred investment growth and federal tax-free withdrawals when used for qualified higher educational expenses*
  • Expertise: Professional investment management
  • Flexibility: Use at eligible institutions around the country and for a range of qualified expenses including tuition, some fees, books, and certain room and board costs.

Most importantly, a 529 Plan can offer peace of mind because you are planning ahead to help a child have a more successful, brighter future. If you have been thinking about a 529, but have been putting it off, now is an opportune time to get started.  

Contribute before 12/31/14 to take advantage of your tax benefit!

Take advantage of a credit of 20% of your contributions to a CollegeChoice Advisor account, up to $1,000 per year, from your 2014 state taxable income.**

Contribution deadlines:

  • Electronic Bank Transfers (EBT): Submit before 11:59 p.m. Eastern Time on 12/31/14.
  • Automatic Investment Plans (AIP): Must have debit date of no later than 12/31/14.
  • By mail: Must be RECEIVED by the plan before 12/31/14 and in good order.

Learn more about 529 Plans or request an appointment to meet with us today!

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* Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
** This credit may be subject to recapture from the account owner (not the contributor) in certain circumstances, such as a rollover to another state's 529 plan or a non-qualified withdrawal.