The end of the school year brings the next chapter in your child’s education one step closer. Whether that next chapter is grade school, high school, or even college, it’s never too late or too early to start saving for your child’s education. The Education Plan, a 529 college savings plan, is a great way to help pay for future higher education expenses.
The costs of higher education continue to increase. A 529 college savings plan is the ideal way for families to save for education costs now so there is less student debt in the future. A 529 education savings plan can be used to pay for a traditional four-year university degree, community college, or trade school.
The Education Plan provides many tax advantages for families. Contributions grow taxfree, and future withdrawals are also tax free as long as they are used to pay for qualified expenses including tuition, room, meal plans, books, supplies, computers, and fees.
"Getting started with a 529 Plan is a simple process," said Carolyn Fittipaldi, Marketing Director for The Education Plan. "Parents, relatives, and family friends can open The Education Plan for as little as $1. You can even open one for yourself.”
Fittipaldi continues, “Plan owners have the flexibility to contribute one time, monthly, or whatever time frame fits into their budget and goals. There are even some employers who allow contributions through their payroll system. No matter how you contribute, the most important thing is to not wait.”
Another advantage offered by The Education Plan is that anyone can contribute to a beneficiary’s existing 529 account. It’s the perfect birthday, graduation or holiday gift that will help a loved one pay for future higher education expenses.
Studies show if a family has as little as $500 saved for college, a child is three times as likely to go to college and four times as likely to graduate.