The Connecticut higher education trust or 529 college savings program was created to help families save money for college. The CHET program was developed by the state of Connecticut to help parents make monthly contributions into a savings plan which has many benefits. The savings plans can be used to pay for college tuition while locking in tuition costs at today’s prices.
This can be an affordable way to save money for college. This is also a great way to save money for other items that your child will probably have to pay for while attending a state university. Some of these costs can be very expensive. Books and living expenses can be very expensive for a young adult trying to focus on their studies. The CHET program allows parents to save money and takes advantage of many benefits that are included with the plan.
The cost of the CHET college plan is very minimal. In most cases they add up to about .47% of the total money that has been invested. These nominal fees are used to take care of the processing fees that are involved with the transactions. You can start a 529 plan with as little as $25. Monthly contributions can be made as well as lump sum payments. Depending on the age of your child and what your savings goals are the amount of money that is invested is up to you.
Connecticut Tax Benefits with 529 College Savings Plan
Another great benefit with the 529 plan is the tax benefits that you will receive. Connecticut offers taxpayers adjusted gross income amount for money that is been invested in these plans. $5000 single contributions can be deducted for a single return, while $10,000 can be used as tax-free income on a joint return.
CHET contributions can also reduce the taxable value of your estate. Contributions made to this program together with other gifts from the account owner to the beneficiary can qualify for an annual federal gift tax exclusion of up to $13,000 per donor. This one tax benefit can save you thousands of dollars.
Earnings Grow Tax-Deferred with Connecticut 529 Plan
Another great advantage to the Connecticut College savings plan is that earnings accumulated are tax-free. This means that your money has the opportunity to grow without any taxes associated from the state of Texas or the federal government. This makes sure that your money gives you an optimum benefit and a great way to maximize your returns.
Paying for College at Today’s Prices
One of the greatest benefits that are overlooked by many people that have 529 college savings plan is the future costs of tuition. Locking in the prices of future tuition costs may be the largest benefit that you can receive with a CHET savings plan. Many experts believe the costs of college tuition will more than double in the next five years. The 529 Plan can save you thousands of dollars by locking in tuition costs today.
Being able to afford college can be a daunting task for any student. With the help of family and friends a Connecticut 529 college plan can make saving affordable. Investing in higher education has never been more important than now. Take advantage of the many benefits that are offered by the CHET program.