5 things you must know about a 529 college savings plan
As a parent, your child is your topmost priority. You do whatever you can to ensure that your child receives the best in life. One of the best presents that any parent could give their child is the gift of education. It is the lasting investment you can make in your child’s life. However, this investment requires huge sums of money. One way you can achieve this is by starting today so that you have sufficient funds in your account tomorrow. You have the US government to thank for this amazing opportunity through which you can save money for your child’s education. It is called 529 college savings plan. Since you are interested in creating a bright future for your child, here are the 5 things that you must know about the 529 college savings plan.
The program calls for low maintenance. Therefore, when you go for this plan, then you can simply fill out a form and select which plan to go for. After you have chosen the plan of your liking, then you can simply start your monthly contribution and forget about it. Your money and plan assets will be handled by the treasury office of the state.
When you enroll in this plan, you will not have to worry about tax calls as taxes will only be counted at the end of year when you make your withdrawals. Therefore, you can simply keep the 1099 form at bay until the moment comes when you have actually put your savings to use.
You Have the Power
Instead of the beneficiary, you, the owner, is in charge of the funds. This simply means that nobody but you will permit when to withdraw and what to use the funds for. At any time, you are also allowed to reclaim your funds. Thus, the beneficiary’s name may be on the plan. However, the controller is in your hands.
No Limits Plan
The 529 college savings plan does not have any limitations. You can contribute any amount that you feel comfortable with, therefore, if you are ready to go back to college, then investing today is the way to go.
On the 529 plan, there are several states that offer tax breaks. Your state may be one of them too. Therefore, if you are interested in receiving some tax relief, research what state offers this option.
You are on the correct path since you have decided to help your child to a brighter future. Since you have chosen to give your child the rare luxury of a great education, this plan will ensure that your dream comes true. By offering you unlimited ways to achieve what you wish, you can ensure that your child gets the life that you had always dreamed of. The aforementioned benefits are only some to begin with. You can always research and find out more about them and choose which plan to go for.