By Patricia Roberts, CSPN Corporate Affiliates Chair
December 12, 2017
With Christmas just around the corner and time running out to find just the right present for the young ones in your life, why not avoid the crowds, the stress and the possibility of buyer’s remorse and instead, give a gift that’s both easy to give and one you’re sure to feel good about for years to come?
This year, consider giving a gift toward financial wellness by giving those you love a contribution toward college.
Here are three easy ways to help with future college expenses:
1. Set up your own 529 college savings plan account.
- In addition to the federal tax benefits of 529 plans (including tax-free growth), you may even be able to take a state tax deduction or receive a state tax credit for contributions depending on the state in which you live.
- There are lots of great choices and opening an account usually takes only 10-15 minutes.
2. Contribute to a 529 account already established by someone else.
- Most 529 plans allow third parties to contribute and many have easy-to-use gifting tools.
- Just ask the person who established the account for an electronic invitation to contribute or a printed deposit coupon and then, simply contribute to the account online or by mailing a check
3. Buy a gift card specifically for college.
- These can be purchased online or in certain retail stores and can be used with most any 529 plan.
- Recipients can use the gift card to fund a new 529 college savings account if they don’t yet have one or to fund an existing account if they already do.
No matter what approach you take, you’ll be helping to make a child’s future as bright as the season’s brilliant holiday lights and you’ll be glad to have given such a priceless gift.
About the Author:
Patricia Roberts has been a part of the 529 industry for over 17 years, serving as an attorney, product manager, state relationship manager, and currently, as chair of the CSPN Corporate Affiliate Committee.