Be Significant In The Lives Of Others
According to the US Internal Revenue Service (IRS), a section 529 plan, is a program established and maintained by a state, or an agency or instrumentality of a state, that allows a contributor either to prepay a beneficiary’s qualified higher education expenses at an eligible educational institution or to contribute to an account for paying those expenses.
What Are The Benefits to 529 College Savings Plans
Payoff Student Loans
Lifetime limit of $10,000 to repay beneficiary’s student loans and additional $10,000 to repay loans held by beneficiary’ siblings
Small Recurring Contributions
Create a nest egg that can reduce need for student loans.
Tax Deferred Growth
Contributions grow free of federal and state income taxes.
State Tax Deduction
Your state may provide a tax deduction for contributions.
Wide Availability
Plans are availability in nearly every state.
Rights of Custodianship
You can change the qualified beneficiary or make other changes at any time.
Qualified Beneficiaries
You can open an account for nearly any blood relative and others.
Qualified Institutions
Accredited institution(s) eligible to participate in federal student aid programs.
Qualified Expenses
Tuition, fees, books, room & board (if full time) and pre-college education expenses up to limits.
Roth Transferability
If open for 15 years, can roll-over $35,000 subject to contribution limits.