The NJBEST 529 College savings plan is a great way for New Jersey families and relatives to save money for their children’s college tuition. These plans offer maximum flexibility at an affordable cost. The New Jersey 529 college savings plan also offers diverse investment portfolios to fit the needs of almost any investor. Depending on how old the child is you can pick aggressive investment plans or more conservative plans to help reach your maximum benefit.
There are some major advantages when using the NJBEST 529 savings plan. These advantages can save your family thousands of dollars in college tuition payments by locking in the price of college at today’s prices. Here are some of the other advantages that you can use to your benefit when investing in the NJBEST College program.
Attending Accredited Colleges in the United States
One of the biggest benefits of the 529 college savings plan is that your child can attend almost any accredited college in the United States. This means that they do not have to attend a university in New Jersey. Many college universities in the United States are part of this amazing investment plan. Their participation makes college selection affordable.
Contribution Benefits of the 529 plan
You can open a NJBEST savings plan for as low as $25. Low minimum contributions make this plan affordable to any person who wants to participate. High contribution limits also exist for a beneficiary in the amount of $305,000. This plan is also not limited to income restrictions and is available to anyone regardless of how much money they make.
In many cases students need financial aid. In some states financial aid depends on your financial status or qualification. One of the best benefits of the 529 plan in New Jersey is that the first $25,000 in savings is excluded from the criteria used to determine the eligibility of financial aid. This means the amount of money that has been saved will not hurt your chances to receive financial aid from the government.
New Jersey Tax Advantages with College Savings Plan
Another great advantage to the NJBEST College savings program is some of the tax benefits they you receive. One of them best tax advantages is that your investments grow tax-free from federal and state income tax. Qualified withdrawals are also not subject to federal or state income tax. There are also outstanding gift and estate tax benefits. A single beneficiary can receive up to $65,000 which would generally be excluded from estate tax purposes. This means that a relative can give a gift up to the $65,000 without having to pay tax on that amount.