Why Right Now is Right for a 529 College Savings Plan
By: Chad Gramling
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.
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.**
- 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.