Oregon 529 College Savings Plan
Oregon 529 Plan Explained
Oregon is a beautiful state. Among the green trees, little to no traffic, and majestic beaches, Oregon is truly a desirable place. Even more desirable about Oregon are the 529 plans. The Oregon 529 plan is a wonderful way for Oregon residents to save for future college costs and prevent their savings from getting taxed.
Oregon 529 plan Tax Advantages
The Oregon 529 plan has multiple tax incentives that are beneficial to every American family looking to save money in this state. First off, all money invested into the 529 plan will grow tax free. Also, when you take the money out, all the invested money will be able to be spent on college related expenses without incurring any additional taxes!
Another great benefit is that you may deduct your investment contributions up to an annual Oregon limit. For Oregon, this limit is $4,240 for joint filers and $2,120 for single filers. If you are considering a roll-over in Oregon, you may want to consult your tax advisor, as the Oregon law is very unclear as to what the regulations are.
Another benefit is the ability to reduce the taxable amount of your estate. In Oregon, this calculates out to a gift tax exclusion of $13,000 for each donor. This can be $26,000 for married filers. This can reduce your estate value significantly, further lessening your tax burden.
Flexible Features of the Oregon 529 plan
As long as the person is a U.S. citizen, anyone can open an Oregon 529 plan. Not even Oregon residency is required. Basically, as long as you are 18 years of age, you can open an Oregon 529 plan. Although Oregon is open to out of state residents, you may want to look into the 529 plan for your state. Always comparing fee structures and history of returns should be a common practice when considering a 529 plan.
The money within an Oregon 529 account can be used for college related expenses. Eligible college expenses include textbooks, college tuition, mandatory fees, class equipment, and even special needs expenses. In theory, if it’s college related, you’re allowed to spend the money on it.
Choosing Your Investment Portfolio
The Oregon 529 plan offers a wide range of investment options. With a choice of 15 investment options, you can choose a single portfolio or pick and choose a couple from the list. Also, the initial investment required to open a new portfolio is very low, at $25 each. An incentive for you to automatically invest through your checking is a reduction of initial investment down to $15.
Oregon has a very high contribution limit, set at $310,000. If you hit this cap, you may not contribute any more, but the interest can grow far past this limit. Also to note, there are no income limitations. It doesn’t matter how much one earns, another reason to open a 529 plan in Oregon.
Another benefit is the fact that you can transfer an Oregon 529 plan to another person in the same family. You must comply with Oregon regulations to ensure that this transfer does not constitute an added fee to your account.
Oregon 529 Plan Fee Structure
With TIAA-CREF managing the money in Oregon’s 529 plans, there is a management fee of 0.2%, one of the lowest in the industry. On top of this management fee, there are also portfolio fees and these range from 0.08% to 0.78%. It would be wise to pick funds for your Oregon 529 plan that have low fees and a history of consistent gains.
Who manages it?
The Oregon 529 plan is managed by an industry leader, TIAA-CREF Tuition Financing. With 90 years of experience, your investments are in good hands. With low fees and a history of integrity and consistent portfolio growth, Oregon has chosen a reputable company to manage their 529 plans.
Access to your Oregon 529 plan
Oregon has made it extremely easy to access your 529 plan and funds. You will receive quarterly and annual reports in the mail and you will be able to see your portfolio’s performance in real time through their online platform. You can also perform typical account activities like changing automatic investments or changing the frequency of notifications to your email.
Eligible Institutions Nationwide
The funds within the Oregon 529 plan are versatile and can be used in any college across the United States or around the world. The Oregon 529 plan is a great choice for families looking for flexibility on how they spend their money for college expenses!
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