Able to Save Your $600 CARES Act Money? A 529 College Savings Plan Could Be The Perfect Investment
For Immediate Release
Contact: Joanie Griffin
505.261.4444
jgriffin@sunny505.com
2020 was a volatile year for everyone. The end of the year news that most Americans will receive a $600 CARES Act check was great news. If you are in the position to not need that money to pay for household expenses or debt, investing in a 529 college savings plan might make sense. When it comes to saving for higher education expenses, it’s hard to beat the tax benefits and flexibility of The Education Plan® –New Mexico’s 529 College Savings Plan.
2020 was a volatile year for everyone. The end of the year news that most Americans will receive a $600 CARES Act check was great news. If you are in the position to not need that money to pay for household expenses or debt, investing in a 529 college savings plan might make sense. When it comes to saving for higher education expenses, it’s hard to beat the tax benefits and flexibility of The Education Plan® –New Mexico’s 529 College Savings Plan.
The Education Plan provides tax-free growth, and tax free withdrawal as long as the funds are used to pay for qualified higher education expenses. Several states, including New Mexico, also offer state income tax deductions for New Mexico residents for contributions made to The Education Plan®. It’s a compelling and effective way to save.
Another great feature is the Plan’s flexibility. The Education Plan is easy to set up and only requires $1 to get started. Although regular contributions provide the biggest impact on account growth long-term, contributions can be made at any time and in any amount. Studies show if a child has as little as $500 saved for college, that child is three times more likely to go to college and four times more likely to graduate.
In addition, the funds can be used to pay for a wide variety of higher education expenses at schools all over the country – public and private. The expenses include tuition and fees, room and board, books and supplies and even required computer expenses. Saving in a 529 Plan is a great way to reduce the burden of student debt.
The Education Plan® also offers the flexibility of being able to transfer the account from one beneficiary to another in the event the first child doesn’t use the funds. It can even be used to fund your own education expenses.
Family members and friends can also easily gift into a 529 account. “Gifting to a child’s 529 plan account is a great way to crowdfund education and help reduce student debt,” explained Ted Miller, Executive Director of the Education Trust Board of New Mexico, the state agency that sponsors The Education Plan®. “It’s the best gift ever – the gift of a promising future.”
For more information on The Education Plan, go to theducationplan.com or call 1 (877) 337-5268
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