With school winding down here in May, it may be a good time to bring up College Savings Plans.
College costs have increased wildly over the past 30 years due to improvements in technology,
modernizing campus facilities, and demand for those who want to attend college.
There isn't much you can do to bring college costs down, however, you can certainly help defray the expense with a good savings plan. The most popular Savings Plan for college right now is the 529 plan, which allows money saved in the plan to be invested in mutual funds. The money can grow tax free, and it can be withdrawn tax free also if the account is being used for educational
expenses. Think of it as a Roth IRA for college.
In Indiana, the 529 plan by U Promise www.collegechoiceplan.com is even sweeter. You can get 20% of your contribution refunded to you in the form of a tax credit. (up to $5000 per IN resident). In other words, if you contribute $5000, you get $1000 back the following spring on your Indiana state tax return.
I am also proud to see that U Promise made the list of best 529 plans according to Business Week and Morningstar.
If you are an Indiana resident, and you would like more information on saving for your child's college education, please contact me at www.deanvoelker.com.