Saving money for your loved ones college education can be complicated. They UFund or Massachusetts 529 college savings plan is a great way for you to get started. College tuition prices have continued to increase in the past few years. There are many people that believe the costs of college tuition will more than double in the next five years. There is no better time than now to start saving for your children’s college tuition costs. The UFund offers some amazing benefits that can make your savings much more affordable and flexible than normal accounts. Here are some of the many benefits that are involved with the Massachusetts 529 college plan.
Making contributions toward your 529 college savings plan has never been easier. You can open up a UFund account with as little as $50. Minimum subsequent contributions can be made with as little as $25. There are also automatic investment options available which can help you make monthly contributions into the investment plan. These contributions can be taken directly from your bank account or from your monthly paychecks. The most you can contribute into a 529 college savings plan is $300,000 per each beneficiary. Saving for college has never been easier.
Massachusetts 529 College Savings Plans Tax Benefits
There are many different tax benefits to the UFund program. These benefits include tax-deferred growth on money that has been invested in these savings plans. Tax-deferred growth means there is more money available to invest in the account which can be very helpful for you to reach your financial goals. Massachusetts state law exempt qualified distributions from Massachusetts 529 plans via conformity to the federal tax exclusion act.
Massachusetts 529 Investment options
Another key benefit to the 529 college savings plan is the amount of flexibility that you have over your investment options. Age based options can be one of the best ways for you to customize your investment portfolio. Contributions are placed into the portfolio corresponding to the beneficiaries’ age. The portfolios will automatically shift to a more conservative investment strategy once the child gets closer to attending college. Static investment options also exist with the 529 college plan. You can select among six multi-fund portfolios which gave you a wide variety of options. This balanced portfolio makes sure that you’re investing your money wisely.
Fees and Expenses Associated with the Massachusetts 529 College Savings Plan
Unlike regular savings accounts there are no enrollment or application fees associated with the UFund savings program. There are also no unnecessary account maintenance fees. The only fees that you will have to deal with are program management fees. These fees are minimal and normally only add up to about .48% of the total account.
In today’s hard financial times saving for college can be a daunting task. Make sure that you start saving early to give your child the best advantage to obtain the funds necessary for their college tuition. The Massachusetts 529 college savings plan is a great way for you to start saving money for college on the right foot.