Saving money for college can be one of the most important decisions that a parent makes in their lifetime. College tuition costs have skyrocketed in the past few years. Statistics have shown that the costs of college tuition will more than double in the next five years. This does not include the price increases for other items that are associated with college. The Scholar’s Edge 529 college savings plan was created to help New Mexico citizens start saving early for their children’s higher education needs. This plan offers many benefits and advantages that can be used to help save money in a flexible and affordable way.
New Mexico 529 College Savings Plans Tax Benefits
One of the best benefits that people can take advantage of is various tax advantages associated with the 529 college savings plan. Earnings in a 529 plan grow federal income tax-free for the duration of the account. All withdrawals made from these accounts are also tax-free as long as they are used for qualified education expenses. These expenses include tuition costs, books, fees, and supplies that will be used by the beneficiary while attending college. Gift and estate tax planning benefits are also very beneficial for account holders.
Contributions can be made up to $13,000 per beneficiary or up to $26,000 for married couples. This can save parents hundreds of dollars a year in taxes. Under the Scholar’s Edge New Mexico plan, residents can deduct their plan contributions from their New Mexico state taxable income. These many tax advantages help you maximize your portfolios growth. The tax savings can add up to thousands of dollars over the life of the 529 savings plan.
School Eligibility with the Scholar’s Edge New Mexico College Plan
Money from the 529 college savings account can be used to attend any accredited college. Public and private colleges are also eligible for the use of these funds. Most universities in the United States are part of the 529 college savings program. Some colleges abroad are also eligible.
Portfolio Options with the Scholar’s Edge College Plan
The scholar’s edge program offers a wide range of portfolio options designed to help you find the right savings plan for your tiny angel goals. Some of the portfolios that exist are age-based portfolios, custom choice portfolios, and other portfolios that are based on your tolerance of risk. You are the account holder so you have total control of how your money is invested. The scholar’s edge offers you many options depending on the risk that you would like to take. Age-based portfolios have become very popular as they offer customized options for your situation. Investment management expertise is offered by the OS by private investment group.
They are a subsidiary of OppenheimerFunds Inc. accounts can be opened for as little as $25. Monthly contributions can be made through automatic withdrawals from your account or through check contributions. This makes saving money easy and affordable. Saving enough money to meet the rising cost of higher education can be very challenging for many families. The New Mexico 529 college savings plan offers important tools and resources that can help you attain a college savings plan that is right for you and your family. Take advantage of the many benefits that are offered by this outstanding plan.