College is one of the best investments you can make for your child. It’s also one of the most expensive, but if you start early by developing and contributing to a comprehensive college savings program, you will be well on your way to providing your child with the educational experience of a lifetime.
The most important thing is to get started now.
You can save for your family’s higher education needs in many ways. Savings, loans, financial aid and scholarships are just a few.
State-sponsored 529 Plan: A 529 plan is an education savings plan operated by a state or an educational institution and designed to help families set aside funds for college. It is named after Section 529 of the internal revenue code, which authorized these types of tax-advantaged savings plans in 1996. Earnings on 529 plans are tax-free if used for qualified higher education expenses. (Unqualified withdrawals may be taxable as ordinary income and subject to a 10% federal tax penalty.) The Pension Protection Act of 2006 made the tax-free character of 529s a permanent part of federal law. are also a popular choice due to a variety of tax benefits. Earnings are tax-free as long as you use the account to pay tuition and required fees at an eligible school.
Every family’s situation is different, so we designed our Plan to let you choose the right approach for your child from among a range of college goals and payment plans.