Have you started preparing for your child's college education? If not, it's time for a plan.
If you have a young child, you have almost certainly wondered how you are going to save for their college education. It is easy to believe that you have plenty of time to save for college. The truth is that saving for college tuition is a long-term goal and the best time to get started is as soon as possible.
A 529 College Savings Plan is a smart way to start saving for college expenses. Investments grow federal income tax free and earnings are free from federal income tax when withdrawn for qualified higher education expenses. The 529 plan also provides you with the ability to control the asset allocation based on your own savings goals.
Benefits of a 529 College Savings Plan:
- Some states allow contribution deductions from state income taxes
- Earnings are free from federal taxes if used for qualified higher education expenses
- You - not your child - remain in control of the funds
- Generous contribution limits exist, regardless of income level
- You choose the investment strategy that is right for you and your student
- Your child may choose any accredited college, university or vocational school
- Unused portions of the account may be transferred to another family member
- Contributions are typically excluded from your taxable estate and may not be subject to gift taxes
It is never too early to start saving for your child's education. Contact us online, or give us a call today at 973-305-4221 and let us help you get started.