Many families hope to see their child graduate from college. This can be a very expensive endeavor as college tuition costs have dramatically increased. Investing in your child’s college education can bring long-lasting results. The Georgia Path2College 529 college savings plan was created to give families a great option to save money with outstanding benefits. These plans come with many flexible options for overall college funding. There are many different features that you can find to be beneficial for you as well as tax benefits which can help you save money. Here are some of the advantages of investing in a Path2College 529 college fund.
Georgia Tax Advantages on 529 College Savings Plan
There are some major tax benefits when it comes to investing in a 529 Georgia college fund. One of the major benefits is that any contribution or earnings used to pay for qualified higher education expenses are income tax-free. They are Georgia state income tax-free as well as federal. The state of Georgia has also offered taxpayers benefits of the ducting $2000 per year on behalf of any beneficiary regardless of their yearly income. These tax benefits to help you save hundreds of dollars a year as well as help you your earnings in your new Georgia 529 college savings plans.
Federal Estate Gift Tax Benefits
The Path2College 529 college plan may also help you reduce the value of your estate. Contributions made toward the plan as gifts may qualify for annual federal gift tax exclusions. In most cases $13,000 per donor are allotted per beneficiary. For married couples the exemption can add up to $26,000 per beneficiary.
Who is Allowed to Open an Account?
Almost anyone is allowed to open a Path2College 529 account. Parents, grandparents, relatives and friends who are United States citizens or legal resident aliens are allowed to open and contribute to a 529 plan. You do not need to be a Georgia state resident to open one of the savings plans. These flexible benefits let’s grandparents be part of their grandchildren’s future education. Many relatives have taken advantage of these plans and have made monthly contributions to help pay for their families education.
How can the Funds be used with the 529 College Plan?
The funds from the savings plan can be used for qualified college expenses. In most cases these expenses include tuition costs, mandatory fees, books, supplies, and other items that are required for enrollment or attendance. For 2010 computers and related equipment costs are also qualified with higher education expenses. This makes paying for college much easier. Tuition is only part of the cost that a student may incur when attending a state university. Being able to afford all the other items associated with college can be very helpful.
Paying for college can sometimes be overwhelming for a family. Good planning and dedication can be the only way to afford to pay for college these days. The Georgia 529 college savings plan helps families achieve their goals by offering an outstanding plan that has many benefits.