Posted By: Sean Brown
We all want to give to our children more than we ever received as a child. The best way to do this is to provide them with an opportunity to attend a top university. Attending a top university is no slight expenditure and requires planning. Do not stress or worry because you are not alone, and the U.S. and State governments understand this, which is why they provide a plan to help American families save for college.
The 529 Plan is an education savings plan set up by state governments to help individual families save for college. This plan can work much like a IRA plan in which it will give a tax break on the money invested into the account with very few limitations. Of course this means that this money can only be used for your child’s college education fund and if a family withdraws the money sooner they will receive a penalty.
For example New York’s 529 provides such advantages as withdraws are exempt from New York State income tax, as well as tax exemptions up to $10,000 for families who file as married jointly. Other small incentives include being able to manage your account 24hours online, as well as no minimum payment is necessary. This means you can start saving with as little as $25 dollars.
With government help like this not saving for your child’s education is border line criminal.
With government help like this not saving for your child’s education is border line criminal.
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