Saving money for college can be a daunting task for many parents. South Dakota residents can take advantage of the new College Access 529 college savings plan. This feature-rich program offers parents a flexible and dedicated way to saving money for their children’s future college tuition costs. As tuition costs continue to rise saving for a higher education has never been more important. If you are South Dakota resident you’ll want to consider the many advantages that exist with the College Access Program.
Tax advantages with the South Dakota 529 College Savings Plans
There are many different tax benefits that exist with 529 college savings plans. Most of these benefits can help you save hundreds of dollars a year in taxes. The money saved can then be invested into your portfolio which will increase the amount of contributions that you make. Once you have made contributions all of your earnings will grow tax-deferred as long as the money is kept in your account. Withdrawals that are for qualified higher education expenses are free from federal income tax. Investments of up to $13,000 per year are also deductible as gift tax exemptions.
Flexible Benefits with the College Access South Dakota 529 College Savings Plan
The College Access 529 college savings plan offers flexible benefits that give you full control of how your money is invested. There are no income or age restrictions that are associated with the program. Low initial investments as well as $250 make savings possible for almost everyone. Once an account is open you will have a choice of 20 investment options.
These options utilize mutual funds from several leading funds which will maximize your earnings. Depending on your child’s age will greatly affect how you make your portfolio choices. The earlier you start saving money the less risk you should take. Having a variety of investment options makes it easy to stay on track with your college tuition goals. Opening a College Access 529 savings plan
Anyone over the age of 18 with a tax ID number or a so security number can open up a 529 college savings plan. It is very simple to open one of these plans. You will have to fill out a College Access application and make a minimum initial investment of $250. Once savings account has been opened minimal monthly payments or contributions can be made into the account.
Contributions can be as low as $15 per month. Grandparents and loved ones can also make contributions into your 529 college savings account. This gets the whole family involved and makes the saving process much easier. The beneficiary of the account can be changed once a year. This gives parents the option to change a beneficiary in case they do not need the funds for college.
The South Dakota 529 college savings plan was created to help parents save money for their children’s future. This program offers many advantages that are regular savings accounts do not offer. Saving for college has never been easier with the College Access plan