Attending a college or university can be a great way for young people to obtain successful careers. The state of Delaware offers an amazing 529 college savings plan to help parents save for their children’s tuition costs. The Delaware College investment plan has been a successful option for many parents who have decided to start saving now. There are many different benefits to the DC college savings plan. Many of these benefits can save you hundreds of dollars a year in taxes. Here is a list of some of the detailed advantages that you can take advantage of when obtaining Delaware 529 college savings plans.
Delaware Tax Benefits for 529 College Savings Plan
There are some major tax benefits when you have a 529 college savings plan. The state of Delaware offers federal tax benefits that will help your savings account grow tax-free. These tax-free benefits will help you invest money for college tuition and obtain maximum gains. Gift tax benefits can also be great advantages when investing in a 529 college plan. Grandparents or relatives can give donations into one of these plans tax-free for up to $65,000.
Minimum and Maximum Allotted Contributions
The minimum contribution that someone can make to open a 529 Delaware savings plan is $50. Monthly payment plans of $15 can be made every month to keep the account open. The accounts have minimal processing fees which add up to normally .65% of the total amount of money that has been saved. The maximum contributions can be up to $320,000. In most cases 529 plans typically increase the contribution limit over time.
Which Investment Plan is right for you?
There are many different options you will have when it comes to investing in your 529 college fund. These options include aggressive investment strategies as well as more cautious money market strategies. Depending on your child’s age, you will have to decide which strategy is right for you. In most cases the younger your child is the more aggressive you will want to be with your investments. As your child gets older and closer to attending college you will want to secure those funds with a less aggressive portfolio. Money market funds are a great option for reducing the risk when your child is of age.
What colleges are eligible for the Delaware 529 college plan?
This is one of the most commonly asked questions when it comes to 529 funds in normally one of the most misunderstood. Just because someone purchases a 529 college savings plan and Delaware it does not mean that they are not eligible to attend other state universities that are participating in the program. Most state universities participate in this plan which makes beneficiaries eligible to attend most out-of-state colleges. This is another great advantage for anyone who decides to participate.
The cost of tuition is sure to rise as well in the near future. Getting involved in a 529 college plan can be a great way to pay for your child’s higher education. Taking advantage of the many tax benefits can also help you increase the amount of money that you invest. This outstanding plan gives you total control of your investments and helps you lock in tuition costs at today’s prices.