Santa Fe, NM, Dec. 19, 2023 (GLOBE NEWSWIRE) -- During the giving season, consider a gift to a 529 plan rather than buying tangible holiday gifts. The Education Plan®, 529 education savings plan is a tax-advantaged savings account that can be used to pay for education expenses at accredited colleges, universities, trade schools, professional schools, and K-12 throughout the United States. Consider opening an account or making a gift contribution to an existing account with The Education Plan®. With the rising costs of higher education and the increase of student debt nationally—it is more important than ever for families to start saving early and contribute regularly.
529 plan earnings are tax-free and withdrawals for qualified expenses are also tax-free. And in some states, the contributions are deductible on state income tax. The plans also offer flexibility, allowing funds to be used for a variety of qualified education expenses including tuition, room and board, books, fees and computer equipment at eligible educational institutions nationwide and even some international schools. Funds may also be used to pay for K-12 tuition and apprenticeship expenses.
To make gifting even more convenient, The Education Plan® offers flexible contribution options. Anyone can open an account at any time and contributions can be made through a one-time gift or regular automatic contributions. While regular contributions provide a great impact on account growth long-term, any contributions that fit into your budget will make a difference. Family and friends can also give a gift contribution into your 529 account through a one-time gift or a recurring contribution. Studies have shown with as little as $500 saved for college, a child is three times as likely to go to college and four times as likely to graduate.
"We understand that every family's financial situation is unique, which is why we accommodate multiple contribution options," said Natalie Cordova, Executive Director at The Education Plan®. "Even a small gift can make a lasting impact with compound interest and the gift of education lasts a lifetime."
A 529 savings plan is an ideal education savings option, as families and students have flexibility in the way they use the funds for future education. By offering a tax-advantaged 529 savings plan, The Education Plan® aims to alleviate the financial burden of paying for future education and empowers families to invest in their children's future.
For more information about The Education Plan®, please visit www.TheEducationPlan.com.
