Having a higher education has never been more important than now. College is becoming a vital way for young Americans to get better jobs in a very competitive marketplace. For responsible parents, having a savings plan in place for your children’s college education is important. The Florida 529 college savings plan has become very popular with parents. It is a great way to make monthly contributions and hold down the price of future college tuition. This plan guarantees your child a fully funded college education for any of the colleges that are part of the program. The Florida 529 college savings plan can also include payments which help pay for living expenses that your child may incur while attending a state university.
How Much Do Florida 529 College Savings Plans Cost?
The price of the Florida prepaid College plan depends on the plan that you select. It also depends on what age your child is and the time you purchase it. The younger your child is and the sooner you start making monthly contributions the cheaper the payments will be. There is a $50 application fee which is nonrefundable and is only charged once.
What Florida College’s are Involved?
The 529 plan includes Florida’s 11 state universities as well as the 28 community colleges. You may also transfer the value of your plan to a private Florida college like the University of Miami. Private colleges tend to be more expensive than some of the state universities. You will have to make up the difference if child chooses to attend a private university.
What is Covered in The 529 Savings Plan?
There are three different plans that exist which vary the coverage that the savings plan has. You can choose one of these programs which can help you pay for the college tuition, dormitory housing, and tuition differential fees. Depending on which plan you choose you will have different items covered. If your child will be attending a Florida university and live at home you’ll want to choose the plan that only covers tuition and books.
What are the 529 College Savings Plan Tax Benefits?
One of the best benefits of the Florida 529 college savings plan is the tax exemption. The 529 plan is a tax-free college savings plan under the Florida federal tax code. This helps you reduce the amount of taxes you pay every year. There are also gift tax benefits to making donations toward the plan. This can be helpful when obtaining gifts for your children’s birthday from relatives and friends. If your child receives money as a gift you can make tax exempt payments toward your college savings plan.
If you can afford to make monthly payments to help your student pay for his or her college you are making a great investment in their future. These plans can help your child get the education that they need to succeed in today’s competitive environment. It can also ensure that when they graduate college they’re starting their new life off on the right foot. We have seen many college students graduate with unheard-of college debt. In many cases students pay back their student loans for up to 25 years while incurring higher interest rates. The irresponsible parent and consider the major benefits of a Florida 529 college savings plan.