Alabama has developed an amazing savings plan for families that want to help pay for their children’s college tuition. The CollegeCounts 529 Fund was developed to help parents with a tax-free way of saving for college tuition costs. The 529 qualified tuition program helps provide flexible options designed to offer creative options and benefits while saving for a higher education.
This program is sponsored by the state of Alabama which gives its citizens benefits that other states may not offer. Some of these benefits include tax breaks on income tax withholdings as well as nominal fees associated with the savings account.
The cost of the 529 plan varies with the amount of transactions that are made. Most of these minimal fees add up to a small percentage of the total amount of money that has been invested. Studies have shown that the fees normally add up to about .48% of the total amount invested. There are no other hidden costs or monthly fees that are included with the 529 plan.
Planning Ahead for College
Everyone knows the college’s expenses. Planning ahead can be a great way for you to help your child with the money that they need to pay for higher education. The value of higher education is immeasurable. Do not wait and not take advantage of some of the major benefits of the 529 Alabama savings plan.
Tax Benefits of Alabama 529 Savings Plan
There are many different tax advantages with the CollegeCounts 529 fund. These tremendous tax advantages include tax-deferred growth and tax-free withdrawals for qualified college expenses. These expenses include books, living expenses, as well as other items associated with the cost of attending a state university. Alabama taxpayers are allowed to deduct $5000 per individual, per year, off of their state income taxes. This alone can save you hundreds of dollars a year.
Control the Money
An account owner has total control of the money that is invested in the count. Many different options exist to help the account holder invest in the various funds that are available. Depending on the preference that you desire you can invest your money in aggressive accounts as well as more moderate funds. Having the flexibility to make direct withdrawals and changing the beneficiary of the plan on a year-to-year basis can be very helpful as well.
Alabama 529 Fund and College Choices
When it is time to attend college the beneficiary has the opportunity to attend most accredited colleges and universities. Funds can also be used at trade schools and graduate schools. Most out-of-state schools are also eligible as part of the 529 program.
The option for a student to pursue a higher education can be unobtainable for those who lack the financial support that they need. The Alabama 529 college savings plan gives families the opportunity to save money for higher education. A competitive advantage like a quality education can be the difference in someone’s life. Use the many benefits that the 529 college plan offers.