The Education Plan®: May 29 is 529 Day!
14 Mayo 2024 - 1:00PM
May 29 is recognized as National 529 Education Savings Plan Day, a
day devoted to raising awareness of tax-advantaged 529 plans, an
option added to the tax code in 1996 that makes investing for
future education more appealing. 529 Day encourages families to
start planning for their loved ones’ future education needs. Recent
data shows that due to rising college costs, families should save
at least $2,000 more over a five-year period as compared to
previous years. Starting to save early is key, and
education-specific savings plans like 529 education savings plans
can help families maximize their savings with tax benefits and
tailored investment options designed specifically for paying
educational expenses.
As of December 2023, over $471 billion dollars are currently
being invested for education around the country in 16.4 million
individual accounts according to the College Savings Plan
Network.
"A 529 education savings plan is a powerful tool for families
looking to save for future education," says Natalie Cordova,
Executive Director of the New Mexico Education Trust Board, the
organization that administers The Education Plan®, 529 education
savings plan. "Not only do these plans provide tax advantages, such
as tax-free growth and tax-free withdrawals for qualified expenses,
but they also offer diverse investment options tailored to
educational goals."
One of the key features of The Education Plan is its tax
benefits. Contributions to an account with The Education Plan may
be eligible for state tax deductions or credits, and earnings grow
tax-free when used for qualified educational expenses. In honor of
529 Day, The Education Plan encourages families receiving tax
refunds to consider investing the refund in a 529 education savings
plan. By leveraging tax refunds in a 529 education savings plan,
families can amplify their savings efforts and prepare effectively
for future educational expenses.
529 plans can be used to pay expenses for education at colleges
and universities, technical and community colleges, trade schools
and many other post-secondary education programs. While state tax
incentives vary, federally, money grows in a 529 account tax
deferred and can be withdrawn tax-free if used for qualified
expenses.
Research shows that with just $500 saved a child is three times
more likely to attend college and four times more likely to
graduate than those without savings. Funds invested in a 529
education savings plan can be used for a variety of qualified
education expenses including tuition, room and board, books,
supplies, and meal plans at eligible institutions nationwide. Funds
may also be used to pay for K-12 tuition, apprenticeship expenses,
and more. The Education Plan is a flexible education savings plan
that accommodates different savings styles, and there is no minimum
contribution required to get started.
"As families navigate the financial challenges of future
education costs, starting to save early with a 529 education
savings plan is a proactive step toward securing a brighter future
for our children," adds Cordova. "By leveraging the benefits of The
Education Plan, families can empower their children to pursue their
educational dreams with less financial burden."
To learn more about The Education Plan®, visit
TheEducationPlan.com.
Joanie Griffin
The Education Plan
505-261-4444
jgriffin@sunny505.com