The 529 College Savings Plan is an education savings plan that is designed to aid families when it comes to setting aside money for college. 529 Plans are typically operated by education institutions or the state.
More About 529 Plans
Just about every state in the United States offers at least one 529 Plan. However, since it’s the state’s decision to offer a 529 Plan and decide what it’ll be like, 529 Plans differ from state to state. Therefore, before you choose to invest or participate in one, you should ensure that you research all the benefits and features of your state’s 529 Plan. If possible, compare between different plans as well.
In 2014, 529 College Savings Day will take place on May 29, or 5/29. On 529 College Savings Day, states will host sweepstakes, contests, and incentives to boost interest in their 529 Plans. For example, Alabama is hosting a $529 Giveaway.
Benefits of the 529 College Savings Plan
Many people are unaware of this fact, but there are tax benefits of investing in a 529 Plan. As long as the plan you participate in meets some basic requirements, you will receive tax benefits. If you choose to invest in a 529 Plan, you may also be in a good position to receive tax incentives, but it depends on the state.
Even if a 529 Plan is run by the state, families can utilize it even if their children are planning to go to college out of state. One can use these plans to meet the costs of any qualified college in the United States. In most 529 Plans, you won’t have to pick a university that’s in the state where your savings plan is from. Believe it or not, but you can be a resident of Florida, invest in a 529 Plan from California, and choose a university in New York.
Another benefit of 529 Plans is that they are typically very low maintenance. The hard part is usually choosing a 529 Plan and completing an enrolment form. Afterwards, you just make your contribution or register for automatic deposits, and then you are completely free to forget about it. Your plan will handle investments of your account, so you won’t have to worry about it at all.
As you can see, 529 Plans have the great potential to be very beneficial. By investing in a 529 Plan, you’ll have peace of mind when it comes to paying for the aspirations of your college-bound student. Therefore, you should definitely consider taking part of 529 College Savings Day on May 29.
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