The rising costs of college tuition have become alarming for many parents trying to save money for their children’s future education needs. Studies have shown that the rising costs of college will continue to rise dramatically over the next few years. There has been no better time than the present for parents to start saving money for their children’s higher education needs. The South Carolina 529 college savings plan offers many benefits that can help you get started now. The Future Scholar 529 college savings plan was rated by Kiplinger magazine as one of the best programs in United States. Here are some of the many benefits that exist with the South Carolina 529 college savings program.
Tax Benefits of the South Carolina 529 College Savings Plans
When you open a Future Scholar 529 savings plan you get outstanding tax benefits with the contributions that you make. South Carolina taxpayers can deduct all of their contributions from their state income tax every year. This can save parents thousands of dollars on their taxes. These huge savings can add additional money for parents to invest in their future scholar account. The more money that you invest the faster you can reach your college tuition goals.
Another great advantage for opening a South Carolina 529 college savings plan is that the earnings from your account grow tax-free. Regular savings accounts that are opened do not carry these benefits. Earnings that are produced from individual savings accounts are taxed. This makes the 529 college savings program a step above other programs that exist.
Relatives and other loved ones can also make contributions that are tax deductible. Gifts and contributions can be deducted by South Carolina taxpayers off of their yearly income tax. This offers an advantage to loved ones that want to participate in a college savings program.
Portfolio Options with the South Carolina 529 College Savings Plan
The Future Scholar 529 plan offers many different portfolio options for account holders. These options are sold directly to the account holder. This helps people avoid paying sales charges that come with the 529 plans which are sold through discount brokers. One of the best ways to save money is by not spending it. Not paying needless fees can add up over time and increase the amount of contributions that you make towards your portfolio. You will have many different options when choosing your investment portfolio.
These options give parents the ultimate flexibility in control of how their money is invested. Age-based portfolios also exist with the 529 plan. These types of portfolios give parents an idea of how much they need to invest monthly into their personal plan based on their children’s current age. Making monthly, disciplined, contributions are the key elements to achieving your college savings goals.
If you are a South Carolina taxpayer you should definitely take advantage of the many benefits that are offered with the Future Scholar 529 Savings Plan. The state of South Carolina knows how important saving for college is and they’ve created an outstanding plan to help their residents meet their goals.