College Savings Plan
With college expenses increasing at an alarming rate, do you ever wonder how you're going to be able to afford sending your child to college? The College Savings Plan—also known as a Section 529 plan—is a federally-approved tax advantaged way to save for future college expenses. This investment plan lets you take advantage of special tax features to help you save for your child's, your own, or a family member's higher education.
Some states also offer a state income tax deduction or tax credit, but not all. Before you decide to contribute to this plan, you may want to consult with your tax advisor about your state's laws.
Money in your account can be used for any accredited, degree-granting college in any state and even some schools in other countries as follows:
- Universities
- Graduate schools
- Community colleges
- Vocational and technical schools
The federal government also allows you to withdraw up to $10,000 per year tax-free from your 529 plan to pay for K-12 tuition expenses. That can be a valuable benefit if you are paying for elementary or high-school tuition.
The 529 College Savings Plan is offered through CollegeBound 529. Administration of the plan is by Ascensus College Savings and investment management is provided by Invesco.
The CollegeBound 529 website offers a variety of educational resources and tools, such as a college savings calculator, college savings plan comparison, summary of investment options, online gifting program, frequently asked questions, and more.