A special day to remind us about the benefits of 529 plans

by Grace

Darn! I missed 529 day.

The College Savings Plans Network sponsored National 529 College Savings Day this past Wednesday, 5/29/13.  Many states sponsored promotions for their 529 plans, with some offering special incentives that are still in effect.

Florida, for instance, is waiving the $50 enrollment fee for plans opened from May 20 through June 30.

You can check out individual states’ events and promotions by clicking on this map.

20130530.COC529Day1

In general, 529 plans are college savings and investment accounts sponsored by state governments. Money deposited in the accounts grows tax free, as long as the funds are used for educational purposes when withdrawn. You don’t have to be a resident of a particular state to use its plan, although some states offer additional tax benefits to in-state plan participants.

Most 529s are designed as traditional savings-and-investment vehicles, but some states offer prepaid 529 plans, which allow savers to pay tuition at certain schools in advance at current rates.

Related:  What you may not know about 529 plans (Cost of College)

 

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One Comment to “A special day to remind us about the benefits of 529 plans”

  1. 529 College Plans are an excellent way to save for college. Keys for success include starting early and making it automatic. You can start contributing when your child has a social security number. You can apply for a SSN right after birth. The other tip is to make it automatic. Set up contributions straight from your checking account that contribute automatically the same time every month. This way you don’t have to even think about it.

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