Today saving for college is more critical than ever before. Tuition and fees are already at all-time highs and the cost is only looking to increase in coming years. The 529 college savings plan is one of the most effective methods for parents interested in investing for their children to go to college.
529 college savings plans allow families to set aside funds for their children to go to college. Most states have at least one plan available, though each individual state offers different features and benefits to the plans they offer.
Why invest in a 529 college plan?
As long as the plan in your state follows certain federal guidelines, parents who invest in a 529 college savings plan are eligible for certain federal tax benefits. Depending on the plan you purchase and the state where you live, you may also qualify for tax benefits on the state level too.
The ultimate benefit, though, is the ability to help your child afford a college education, despite the exponentially rising costs of doing so.
Other benefits with this savings plan for college are that there are no income or age restrictions or limitations. The accounts require little maintenance activity and they are quite flexible.
Chances are good that you have questions about 529 college savings plans and whether they are the right choice for your child’s educational needs. Consult us today to learn more about your college savings options and what a 529 plan can mean for your child’s future.
If you are concerned about saving for college, call our office.
Morey and Associates is a licensed CPA Accounting Firm serving Orange County. We have offices in Newport Beach and San Clemente.