The cost of college tuition has been escalating yearly. Accumulating the necessary funds that are needed to pay for a child’s college tuition has become a daunting task for many families. A good education can make a world of difference in a child’s life. The sooner that you start saving money for college the more opportunity you have to let your investments grow. The HI529 College savings plan was created to help families that live in Hawaii a better way to reduce college tuition costs.
The plan offers many great opportunities to save for future higher education expenses and to grow investment dollars at the same time. There are many different benefits that have been included with the HI259 College plan. These benefits can make a big difference in how much money you can save for future tuition costs.
Participation is Easy
You can contribute to a HI529 college savings account no matter how much money you earn in a given year. Family members can also make contributions to your account. You can open one of these college savings accounts for as low as $15. The amount of the monthly contributions that you choose to make is strictly up to you.
Investment Flexibility with Hawaii 529 College Savings Plans
When you enroll into a Hawaii 529 college savings account you have the flexibility of how your money and assets are invested. There are many different options that you have at your disposal. Your risk tolerance will help determine how you will invest your money. For higher gains there are riskier stock portfolios. Once your child is of age you want to consider low risk stocks which are mostly compromised of money market funds. The bottom line is, you have total control of the account. You can speak to an investment analyst to help you come up with the best plan for your situation.
Hawaii Tax Benefits with the 529 College Plan
There are many different tax benefits which can save you hundreds of dollars while investing in your college savings program. All earnings from your HI529 grow tax-deferred from state income tax and federal income tax. Withdrawals for qualified higher education expenses are tax free. Some of these expenses include books, living expenses, and other related tuition costs. Gift tax exemptions also are great benefits. Gift-tax exclusion lets you make a $65,000 contribution within a single year. This can also be a great benefit for relatives that want to take advantage of the tax breaks that they may receive and help their relatives get a higher education.
Once the student is of age and is ready to attend college the money can be used at almost any state University. This also includes out-of-state universities that are participating in the 529 college savings program. Thousands of state universities are participating with this federal program and those who qualify will accept money from funds associated with the HI529 college plan.
Hawaiians should take advantage of these great college funds. These funds can be used in many ways and can help your child get the education that they are looking for. Having a competitive edge in today’s workplace means having a good education.