Tuition costs are on the rise and saving for college has never been as difficult as it is today. Most parents have the same goals and want their children to attend a college or university when they are eligible. The need for a higher education has never been more prevalent then in today’s work environment. Having a college education may mean the difference between getting a high-paying job or being unemployed. The Tennessee BEST 529 college savings plan was created to help Tennessee residents start saving money now for future tuition costs. The Baccalaureate Education System trust or BEST program was created by the Tennessee General assembly for this purpose. There are many different benefits and advantages which can help you save money faster for your child’s future college education.
How the BEST 529 College Savings Program Works
The best 529 college savings program is one of the most innovative 529 savings plans in the United States. Each year, the program will look at the average cost of a year’s tuition and mandatory fees at a public University in Tennessee. The average tuition costs will be divided by 100 units which can be purchased by individuals. The unit cost is then offered to 529 account holders. 100 units adds up to one year of college tuition. This helps parents stay on track with the rising costs of tuition by having an exact figure of where they need to get to. The cost of one unit is currently $115. 400 units add up to a four year degree at any University in the United States.
Opening up a BEST 529 College Savings Plan
If you would like to open up a 529 college savings plan in Tennessee all you have to do is fill out the enrollment application. Once the enrollment form is completed you must make a $50 minimum contribution towards the account. Subsequent payments can be made in the amounts of your liking. After the 529 account has been opened account holders will have to choose a portfolio that is right for them. These investment portfolios offer you flexible options with variety of risk. Depending on your child’s age will help you determine which portfolio may be right for you. Having option to customize your savings account gives you full control and input on how your money is invested.
Who can participate with the best 529 college savings plan?
Participation in the Tennessee 529 college savings plan is open to almost everyone. Grandparents, family members, and loved ones can make contributions to these incredible accounts. In some cases tax benefits are also offered to others who may contributions. These tax benefits are known as gift tax advantages. In many cases contributions by relatives can be deducted up to their team thousand dollars per year per beneficiary. This can be a great way for all family members and loved ones to be involved in your child’s future college education. This is the gift that keeps on giving.
The Tennessee 529 college savings plans program is one of the best programs in America. It offers parents a detailed plan that helps them stay on track with their financial goals. Opening one of these savings accounts is quite easy and should be considered by any individual who wants to start saving now for their child’s future education needs.