College is an investment for a lifetime. A good college education can open the door to a world of great opportunity for your child or grandchild. There are many different reasons why you should invest in your child’s education. The rising cost of education has become troubling for most parents who are trying to save money for their loved ones. According to the College Board, the cost of tuition is supposed to double in the next five years.
The statistics can be deflating news to many parents. The New Hampshire 529 college savings plan was created to help parents start the savings process for their children’s higher education. There are many different benefits that you can take advantage of when you open a 529 college savings account. Here are just a few of those benefits.
New Hampshire 529 College Savings Plan Tax Advantages
There are many different tax advantages that are offered with the 529 college savings plan. All money grows federal and state income tax-free. This means all your earnings can work for you and help you increase the value of your portfolio. All withdrawals used for qualified higher education expenses are also exempt from federal income tax. Assets within the 529 college savings plan are protected from bankruptcy. Account owners can make lump-sum contributions of up to $65,000 per beneficiary as a taxable gift. This can save you thousands of dollars on your taxes
Advantages of New Hampshire 529 College Savings Plans
There are many different advantages that the state of New Hampshire has included in the 529 college savings plan. The account holder retained control of the assets within the program no matter who the beneficiary is. The beneficiary can be changed once a year if needed. The money that you save with the college program can be used at virtually any accredited college in the United States. The money can be used to pay for fees, tuition costs, room and board, and books.
In some instances equipment, like computers, can be paid by the 529 plan. The New Hampshire college savings plan can be opened with as little as $50. Low monthly contributions can be made regardless of your income level. Low minimum monthly contributions can be made for as low as $15 per month. Family members and relatives can also invest in your child’s future by making contributions to your account. This can be another great way for relatives to be involved with the future of their grandchildren or loved ones.
Most families rely on student loans to pay for college. Though low interest loans are often available for college financing they can be a burden when the child graduates. Saving money for college can reduce a family’s reliance on loans and unwanted interest rates. Saving money early can be one of the best ways for your student debt free. Take advantage of the many benefits that are offered by the New Hampshire 529 college savings plan. Saving money for your child’s higher education needs may be the best investment that you make in your lifetime.