Giving your child or loved one a gift of a college education may be the most important gift that you can give them in their lifetime. The rising costs of college tuition have made this gift seem almost impossible for many parents. The state of Oregon on has developed an outstanding 529 college savings plan to help their residents start saving money now. The Oregon 529 college savings plan can help you put your child’s future education needs within reach. Here are some of the many benefits that you can take advantage of with one of these outstanding plans.
Oregon 529 college savings plans tax benefits
Saving money in your taxes can be a great way to make contributions into your 529 account. The Oregon 529 plan offers some outstanding tax advantages that can help you save money every year. All contributions and any earnings used to pay for qualified higher education expenses are Oregon State income tax-free.
They are also federal income tax free. Oregon taxpayers can save up to $2090 per year with contributions made into one of these 529 college savings accounts. Parents to file jointly can deduct $4180 per year. Federal estate and gift tax benefits are also very beneficial. Contributions which are give can be made to and Oregon college savings plan in be deducted for $13,000 per year. This can be a great way for grandparents and loved ones to help in your child’s future education needs.
Choice of investment portfolios with the Vermont college savings plan
The Oregon college savings plan offers a choice of 15 different investment portfolios that account holder can choose from. Portfolios can be chosen based on the amount of risk on account holder wants to take. The minimum initial contribution is $25 per investment portfolio. Further contributions can be made with as little as $25 a month.
This makes saving possible for almost everyone that wants to be involved. This flexibility offers parents a great way to have full control of their investments. The state of Oregon has selected TIAA-CREFF tuition financing to manage their accounts. Account holders can call a TIAA-CREFF associate and develop a detailed investment strategy that is customized for their personal needs. Online access is available to your account information 24 hours a day. You can speak to a college savings expert Monday to Friday to help you with your account.
Costs of College Tuition
According to a 2009 college pricing study, the average cost of a four-year college degree at a public University is approximately $15,000 per year. Private college costs have reached more than $35,000 per year. The Oregon 529 college savings plan a great way for parents to get a jump on the rising costs of tuition. The funds that are saved with the 529 college savings plan can be used for various expenses that are related to college. These qualified expenses include books, tuition fees, room and board, and other expenses associated with attending a university.
Whether your child is and incense or a teenager, this sooner you start saving a better your chances are for reaching your goal. Right now is the best time for you to start with the Oregon 529 college savings program. Making monthly contributions and staying dedicated will make a huge difference your savings plan. The more you invest in an earlier you start the more money has the opportunity to grow for you.