The Florida 529 College Plan is designed to assist students, parents, and even grandparents to save for educational expenses related to college in an account that is considered to be “tax-friendly”. All of the earnings associated with the contributions of such plans are not taxed by the federal government. There is one Florida 529 plan currently available and that is the Savings Plan. This college savings plan is sold through the state and is managed by the organization known as the “Florida Prepaid College Board”. In this brief guide, you will learn important information regarding the Florida 529 College Plan and its benefits.
In order to apply for the Florida 529 College Plan, applicants must pay a one-time fee of $50.00. Each year, an annual fee that totals .0075% of the overall account balance must also be paid. That is, unless there is a money market option set into place. If so, the fee is .001%. The starting contribution of this particular college savings plan must be no less than $250.00. In order to avoid having to make this starting contribution, you may elect to sign up for automatic contributions. You must agree to at least $25.00 each month. Once the beginning contribution requirement is satisfied, there is no monetary minimum for all of the contributions that are placed in the account.
While many of the 529 college plan options available throughout various states offer tax benefits to those that contribute to the savings plan, the State of Florida does not offer any type of tax credit, tax deductions, or other types of tax-related benefits, apart from the standard tax-free federal income option that is offered on all these plans, nationwide. Additionally, zero amounts are the tax deductions are allowed by the State of Florida on tax returns, regardless of whether the tax return is a single return or a joint return.
How Contributions May Be Spent
There are a number of ways that the Florida 529 College Plan contributions may be spent. Most individuals use the monies on the account towards the tuition of the Florida educational facility that they have a desire to attend; however, the money may also be spent to play for room and board expenses, as they pertain to acquiring a postsecondary education. Furthermore, the contributions may be used to purchase textbooks, school supplies, transportation expenses, and similar expenses. As long as the money is placed towards those things and situations that pertain to acquiring a college education, it will likely be considered “approved” by the Florida 529 College Plan.
The State of Florida is an immensely popular location among those that have a desire to attend college. The top colleges and universities located in the Sunshine State include The University of Florida, Florida State University, University of Central Florida, University of South Florida, Florida International, University of Miami, New College of Florida, Florida Institute of Technology, Rollins College, Florida State College at Jacksonville, Florida Atlantic University, and Stetson University. Each of these colleges offers a wide variety of degrees and educational diplomas. If you are searching for a productive and effective means of funding your college education, the Florida 529 College Plan is for you!