529 College Plan Savings

Are you concerned about your ability to pay for your kids’ college education? Maybe it’s time to take a look at a 529 college plan savings account. The cost of education is starting to slow down but, for how long? According to a 2007 press release from the United States Census Bureau, the cost of attending private and public institutions of higher education has doubled since 1990 and will continue to rise well into the future. What kind of effect will costs like that have on your retirement savings? Feeling the pressure, many parents are turning to Tax-advantaged alternative plans.

Do you want a help to set up a 529 college plan savings account? Contact a financial planner to get started on a 529 college plan savings account today!

Below are come of the advantages of the plan:

• The money grows state and federally income tax free
• The account holder retains ultimate control over the count
• The beneficiary may be changed to any other family member
• A large portion of states exempt income tax for education expenses
• High limits on maximum allowable contribution

With the gains of the plan being all tax free, the money accrues much faster than it would if it were in a traditional savings account. Just recently, congress passed a bill to make the tax breaks permanent. So, if for example you were to take out money for books or other qualified educational expenses the money would remain tax free. The important thing to take note on is that the expenses must be qualified as a higher education expense.

In a recent report by the US Census Bureau, the average cost for a four year college is more than $17,000.00 per year. Furthermore, recent studies by the US department of Education show that while middle income has risen by 30%, the average cost to attend a four-year public college or university rose 51% after adjusting for inflation (the increase for private schools is 36%).With prices for the soaring education costs who can’t afford to have a educational savings strategy?

Do you want help to set up a 529 college plan savings account? Contact a financial planner to get started on a 529 college plan savings account today!