The 529 plan will help you invest in your child’s college education as soon as possible.
The average cost of going to university is around $30,000 a year. So it helps you start saving for your child’s college education as soon as possible. And by opening a 529 college savings plan, you can now start investing in your child’s future. You can think of it as 401(k) for university expenses. But there’s more to it.
What is the 529 plan?
With the 529 University Savings Plan, you can invest in your child’s university education and pay for expenses such as tuition fees, books, and supplies needed for registration. It also offers clear tax benefits such as: This provides contribution revenues that expand tax-free, as long as it is used for the costs of eligible universities. Some states offer credit based on state-level tax credits or contributions. But you can open anyone you want. Plus, your child can use his funds to attend schools both inside and outside the state.
What are eligible education expenses?
You can use 529 plan funds for various costs including: rooms and boards (for at least halftime students) Registered computers and equipment needed for internet access – 12 tuition fees (up to $10,000 per beneficiary) Student loan repayment (lifetime limit per lifetime limit of $10,000)
How does the 529 plan work?
When you open a 529 plan, you usually have a variety of investment options, such as mutual funds. Many also offer age-based portfolios. These are professionally managed portfolios that aim to change asset allocation over time to become more conservative and retain savings.
