In the words of my favorite movie character, Randy Watson from Coming to America, “I believe the Children are our Future. Teach them Well and Let them Lead the Way”.
You can start saving for your children’s (or your favorite young relative’s) education now through a College 529 Plan. *You’ll receive a tax benefit on your state tax return in select states.
What is a College 529 Plan, you ask? A College 529 Plan is an investment account that offers tax benefits when used to pay for qualified education expenses for a designated beneficiary. You can use a 529 plan to pay for college, K-12 tuition, apprenticeship programs and student loan repayment
Now to the good part….for example, if you file taxes in New York, you can contribute a max of $5,000 (Individual) or $10,000 (Joint) to a 529 Plan and receive a tax benefit on your NY Tax return. Now how cool is that!
For more information on state specific rules, review Invesco’s “529 Plan Tax Benefits by State“
Or reach out to your Friendly CPA (Me- Danielle Robinson) with any questions!
