5 Benefits of 529 Plan Education Savings Plan: Smart Income, Smart Future
5 Benefits of 529 Plan Education Savings Plan
Everyone needs great ideas for earning tax-free money and saving for the future. Have you looked into a 529 option for college savings? If you are an Alabama resident, consider these enticements for the long term health of your savings.
Income Tax Benefits
Consider what tax-free money in your account could mean years down the road with rates likely to go up. Tax season is only a few months away, make sure your untouchable money has a place to go before it is subject to fees.
Alabama Tax Deductions
Take advantage of the deductible amounts on your yearly taxes and keep money in the state. Residents can deduct $5,000 for single filers and $10,000 for married filers.
Full Donor Control
Contributions to the account are adjustable according to the donor’s comfort with market risk and changing income. Also, the beneficiary has no legal rights to the fund unless they use it for ‘qualified’ purposes, ensuring control over withdrawals and credits to the plan.
Like most savings accounts and retirement plans, the 529 is a set it and forget about it fund that operates on autopilot. Once you organize the plan, plan for growth.
Everyone is Eligible
This account is for anyone interested in smart savings and tax-free money. Any age or level of income has assured a piece of the tax-free pie. The best part is the sooner you start, the more exponential your growth.
Want to get in on the smart-savers option for college? See our experts for a quick look at plans built with your kids’ future in mind. They understand planning and can steer you toward a tailor-made education and savings goal.