Saving for your child’s college tuition can be one of the most important decisions that you make in your life. The benefits of a higher education are analysts when you consider how it affects a person’s life. The Nevada 529 college savings plan is a great way for parents to start saving money for their child’s future tuition costs. There are many different benefits that are associated with the Nevada 529 college savings plan. These benefits can save you thousands of dollars which can later be used as contributions towards your account. Here are some of the many advantages to a 529 college savings plan.
The Nevada 529 College Savings Plan Tax Benefits
In general, 529 college savings plans offer many tax benefits. These benefits include that all of the earnings that are accumulated grow tax free. This means that you do not have to pay Nevada income tax or federal tax on the earnings you have accrued. Estate tax benefits can be another major advantage. Contributions of up to $13,000 per year can be used to reduce the size of one’s estate while helping a loved one pay for college. Gift tax benefits can also be very beneficial. Family members as well as loved ones can make donations to a 529 accounts and benefit from the exemption of a gift tax. These exemptions can save people hundreds of dollars on their tax returns.
Portfolio Options with the Nevada 529 College Savings Plan
You have many different options when it comes to investing with the Nevada 529 college savings plan. Some of the portfolio options include age-based portfolios that allow you to customize your investment situation based on your child’s current age. This allows you to take a more aggressive approach to your investments. The Vanguard and Putnam groups are both part of the Nevada 529 college savings plan. They offer great customer service and counseling support to help you pick the plan that is right for your given situation. Take advantage of this service if you have any questions or are not sure on how to accomplish your financial goals. These companies have years of experience with 529 college savings plans and can give you great ideas on how to customize yours. There are three different risk levels which you will want to get familiar with. Each of these levels has five portfolios of underlying mutual funds. The contributions that you make are put in the mutual fund or portfolio of your choosing. Having total control of your account gives you the maximum benefit and flexibility.
Fees and Expenses with Nevada 529 College Plans
There are no enrollment or application fees when you create your 529 account. There is a minimal $20 annual maintenance fee on accounts below $3000. Program management fees normally add up to about .25% of the total fund expenses. There are no other hidden fees involved with the 529 plans. These minimal fees can save you hundreds of dollars a year compared to other savings programs. Saving for college tuition has never been as important as it is today. Higher education is something that is needed by young Americans who are trying to compete in today’s marketplace. Take advantage of the many benefits that are offered by the Nevada 529 college savings plan.