North Carolina is the home of some of the greatest college universities in America. The NC 529 college savings plan was created to help parents save money for their children to attend these great schools. Like most 529 college savings accounts the NC plan has many different options that offer flexibility and other benefits that regular savings accounts do not. If you are a parent that is looking for a way to save for your child’s future college tuition needs you will want to consider this outstanding program. Here are some of the many advantages for opening up a NC 529 college savings plan.
North Carolina 529 College Savings Plan Tax Benefits
There are many different tax advantages that are associated with the 529 college savings plan. If you are a North Carolina taxpayer you’re eligible for a state income tax deduction when you contribute money towards the NC 529 program. The current state income tax deduction is $2500 for individual and $5000 for a married couple who file jointly. Account earnings in the NC 529 college savings program grow tax-free from state and federal income taxes. This money can be used as an investment qualified higher education expenses. Taking advantage of these many tax benefits can save you hundreds of dollars a year and help you fund your 529 account.
Investment Options with the North Carolina 529 Plan
As a NC 529 savings plan account holder you have full control of the money is invested in the account. You can select from a variety of investment options that cover a range of strategies. Depending on how conservative or aggressive you would like to be with your investments can make a big difference in how fast and how much your returns will be. You can choose from a mix of options to give you a wider range of possibilities. The beneficiary of each account can be changed once per year. This gives you the flexibility to do whatever you like with the money that you save.
How to open a North Carolina 529 college savings plan?
Opening a NC 529 college savings account is very easy. All you have to do is fill out an enrollment package and make your first $50 contribution. Future contributions are strictly up to you. Relatives and family members can also make contributions into your account which gets the whole family involved. Once you have made contributions into your new account you have to select the portfolio that you would like to start investing with. Making disciplined monthly contributions can help you reach your desired financial goals.
What colleges are eligible with the North Carolina 529 college savings plans?
The 529 college savings program can be used in virtually any college anywhere. Most college universities in the United States are participating with the 529 program. You can use your money for college tuition as well as other college fees which include room, board, books, and supplies that may be required for enrollment.
The NC 529 college savings program is a great way for parents to get a head start on their children’s future education needs. The enrollment process is very easy and the program offers many different benefits which can save you hundreds of dollars a year. This makes the NC college savings program one of the best in United States.