There are many different ways for parents to save for their child’s college education. College tuition can be very expensive and prices are due to rise in the near future. If you are a concerned parent and want to start saving for your children’s future higher education fees you’ll want to consider the Louisiana 529 college savings plan. This innovative college savings plan was designed to help families contend with the growing costs of education for their children after they graduate high school.
The plan provides many different benefits which can help you save more money. You can invest this money into your child’s savings portfolio which will help you meet your desired goals faster than ever. Here are some of the many benefits of the Louisiana START 529 college savings plan.
What is the START College Savings Plan?
The START is an account that can be opened and saved for anyone that intends on attending college sometime in the near future. It can be in the next year or 10 years from now, it doesn’t matter. The account can be opened for any future student at any age. Money magazine ranked the start program as the number one 529 college savings plan in the United States. There are many different benefits to these accounts which include different investment options, tax benefits, and earnings enhancements.
START Saving Plan Tax Benefits
Start offers tax advantages that other savings accounts do not provide. Up to $2400 per account per beneficiary can be deducted per year by an individual. This helps Louisiana citizens save hundreds of dollars per year as long as they make contributions. The tax deduction doubles to $4800 for a couple that files jointly. Unlike regular savings account contributions are not tax-deductible. Another great advantage to the Louisiana 529 college savings plan is that earnings grow tax-free.
All the money that you accumulate in savings plan is not taxed so the money can be used to increase the size and growth of your portfolio. Withdrawals from the account are also tax free as long as they are used towards qualified college education costs. These costs include college tuition, fees, books, supplies, and room and board that are needed during your child’s college years.
Earnings Enhancements with the Louisiana 529 College Savings Plans
The earning enhancement feature of the START savings account actually offers contributions from the state into your college savings account. Depending on the relationship of the account owner to the beneficiary of the account, the state of Louisiana will make contributions of 2% percent to 14% of the annual deposits every year. The percentage of the contribution is based on the federal adjusted gross income reported for the previous year by the beneficiary’s family. The state of Louisiana has taken college savings programs to the next level. The START program has helped thousands of people save money for their children’s future college tuition expenses. There are not too many states in this country that are willing to make contributions toward your account like the state of Louisiana has. Take advantage of these benefits and make college savings a priority in your life.