ALBUQUERQUE, NM – As the New Year 2023 begins, consider an important New Year’s resolution that includes financial planning for a loved one’s future education with a 529 plan. The Education Plan® 529 education savings plan provides tax-advantaged savings and can help combat the rising cost of education.
The Education Plan can be opened with as little as one dollar and can be used to pay for qualified expenses, including tuition, room and board, fees, and computer equipment at colleges, universities, trade or professional schools throughout the nation– for either the account holder or a beneficiary. While investing more money into the plan allows for more long-term growth, any contributions that fit your goals and budget will make a difference.
“Putting away money now to prepare for the future is one of the best decisions anyone can make for their education or the education of a loved one. Investing money today provides an opportunity to have even more money tomorrow, and as we enter a new year, it’s the perfect time to think about the future,” said Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the organization that administers The Education Plan. “A major advantage of investing in a 529 plan is its potential for tax-free compounded growth. Everything saved now will help alleviate the financial burden of attending college.”
Contributions to a 529 account grow tax-free and there is no tax on withdrawals when funds are used for qualified expenses. Many states also offer a tax deduction on state income tax for funds invested in a 529 account if funds are used for qualified expenses.
“If you received cash for the holidays or a year-end bonus from your employer, it’s the perfect time to jumpstart that 529 Savings account in the New Year,” added Cordova. “Saving for future education costs is a positive step for you and your family. We encourage everyone to start 2023 with a renewed dedication to saving for education.”
To learn more about The Education Plan®, visit TheEducationPlan.com or call 1(877) 337-5268.