529 College Savings Plan By State

Welcome to 529 College Savings Plan By State! We have everything you need to make your life easier as you begin your search for the best 529 College Savings Plan. State specific 529 plan details, contact information, step-by-step application process, and savings tips to help you achieve your college savings goals.

529 plan by state

Savings for College Made Simple

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Saving for College doesn’t have to feel like an uphill battle.  There are tools available to make saving for college extremely simple.  The key is this: knowing what tools are available and figuring out which one is the best fit for you and your student.

Federal programs called Qualified Tuition Programs give you the ability to save money towards college expenses while receiving a significant tax break.  Here are two qualified tuition programs that help you to maximize tax savings while you save for junior’s college bill.

college savings made simple

Coverdell ESA

The Coverdell Educational Savings Account (ESA) allows you to save up to $2,000 annually per student.  Most banks, brokerages, and financial institutions will provide these savings vehicles and opening an account can even be done online at some places.

The earnings in the account can be distributed tax free as long as it is used to pay for qualified education expenses like tuition, books, room and board, computers, vehicles, and even student housing.

There are income restriction that must be considered before you start contributing to a Coverdell ESA.  The IRS sets a phase out limit for single taxpayers earning between $95,000 and $110,000.  The phase out limit for joint filers is $190,000 and $220,000.  If you make more than the limit, you will not be able to contribute at all to a Coverdell ESA.  You would be better served with a 529 College Savings Plan (see below).  Read our full review of Coverdell ESAs for more details.

529 College Savings Plan

Each state has a 520 College Savings Plan that allows a person to invest money for a beneficiary’s future educational expenses.  Like a Coverdell ESA, the interest earned can be distributed tax free as long as it is used to pay for approved educational expenses.

A great benefit of a 529 college savings account is that your state may allow you to deduct a portion or all of your contribution from your state income tax.  Additionally, you and others can make contributions to a 529 plan without meeting income limitations.  In other words, your income level will not prevent you from contributing to a 529 college savings plan.

It is importation to realize that your state’s 529 college savings plan will have a specific limit for lifetime contribution; but the limits are very high, reaching over $300,000 in some states.

Click here to read our full review of 529 college savings plans.

Creating a Savings Strategy

Once you’ve decided on which college savings vehicle to use, you’ll need to develop a savings strategy that works for you.

Small savings made early can really add up, so it’s obvious that the earlier you save, the less playing ‘catch up’ you’ll have to do.  Incremental increases each year can help to ease the burden of making monthly contributions to a college savings account.

For example, if you decide to increase your savings each January by $20 a month, you’ll end up with close to $57,000 more in your account than if you kept the same contribution for 18 years.  (Based on 7% annual return).  The small changes can make a big difference, so implement a savings strategy early and stick with it.

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