A 529 College Savings Plan has a distinct tax advantage when compared to other college savings account options.  The earnings in a 529 College Savings Plan grow tax-free as long as withdrawals are used for qualified educational expense (withdrawals for other purposes make earnings in the account taxable, plus the earnings may be assessed with a 10% IRS penalty).

In-State vs. Out-of State.  Another unique quality about the 529 College Savings Plan is that it is sponsored at the state level.  All 50 states have their own unique 529 College Savings Plan.  Additionally, utilizing your own state 529 plan may have state income tax benefits.  But in the event that you wish to utilize a 529 plan from another state, that is permissible.  Reasons for using an out-of-state 529 plan usually hinge on the different investment choices and vendors utilized by each state.

Let’s get started.  To help you get started, complete the form and we’ll send your FREE 529 College Savings Kit.  With a small initial investment of $250 and as little as $50 per month ongoing, saving for college for your child or grandchild is more affordable than you think.  So go ahead and order your FREE College Savings Kit today.

Need to learn more first?  We understand that paying for college is a challenging step for many families.  That’s why we’ve created a online library resource to help you answer important questions.  It’s called the Library of Investor and Financial Education or LIFE Center for short.  In the LIFE Center, we have developed the Paying for College Page which we hope will answer many of your questions.  Once you finish your research, come back to this page and order your FREE 529 College Savings Kit.