Santa Fe, NM, March 09, 2021 (GLOBE NEWSWIRE) -- Welcoming a new baby into the family is one of the most exciting times in a parent’s life. It’s also a time filled with planning, new concerns, and looking to the future. While new parents may not be considering the future college or career choices of their newborn, starting a 529 college savings account early in the child’s life can be one of the most beneficial planning decisions a parent can make.
“Whether you’re a new parent hoping to give your child the best opportunities in life, or you’re looking for a unique and meaningful baby shower gift, there’s no better time to start saving for education than at the beginning of a child’s life,” said Ted Miller, Executive Director of the Education Trust Board of New Mexico, the state agency that administers The Education Plan® 529 college savings plan. “The account will grow over time and benefit from tax-free growth. Saving even a small amount every month can grow to tens of thousands of dollars when your child is ready for college.”
Opening an account years before the funding will be used allows time for the investment to grow at a greater rate than opening an account closer to a child’s high school graduation. Additionally, the earlier the account is open, the more the account holder can contribute over time. This can alleviate the potential time-sensitive financial hardship on a family during the years closer to college.
Gifting to a 529 account is also easy with The Education Plan®. “Gifting to a child’s 529 plan account is a great way to crowdfund education and help reduce student debt,” explained Miller. “Family and friends can contribute to the child’s 529 account. It’s the best gift ever – the gift of education.”
The Education Plan® also offer tax benefits. Contributions are tax-deductible on some state income tax returns, and earnings grow free of state and federal taxes. Withdrawals are also tax-free when used to cover qualified education expenses. Savings plans can be opened with as little as $1 and contributions can be made whenever the account holder chooses.
“Every little bit contributed to education is a step in the right direction,” added Miller. “Making small monthly contributions—or contributions whenever your finances allow—is a great way to help your children avoid student loan debt and set them up for a bright future.”
The Education Plan® can be used to cover tuition, housing, meal plans, books, supplies, computers and fees at any school nationwide—vocational or trade schools, professional schools, colleges and universities—making it a wide-ranging option, no matter what your children’s interests may be as they grow.
To learn more about The Education Plan®, visit TheEducationPlan.com or call 1-877-337-5268.