It’s almost 5/29, a day to celebrate 529 Plan college savings! We frequently recommend 529 Plans for families saving for college, and this month, many state 529 Plans are running promotions to encourage college savings. We wanted to spread the word to give parents time to participate.
The 529 Day prizes vary from state to state. Some states are contributing money to 529 Plans for babies born May 29, 2017, while others have sweepstakes or community events. The prize money can be significant! For example, Virginia is having a $20,000 giveaway for parents who open an Invest529 account with automatic contributions by May 31.
Click your state name to see whether your state is participating in 529 Day. For those states without a specific 529 Day promotion, we have linked to the state’s 529 Plan website.
Is Your State Participating?
Remember that you do not have to be a resident to participate in a state’s 529 Plan. If your own state does not offer a tax deduction for 529 Plan contributions, or has high fees, we recommend selecting a high-rated plan from anywhere in the country. Savingforcollege.com has a good comparison tool if you would like to research features of various state plans.
How Can You Celebrate 529 Day?
- Set up a 529 Plan for your child, grandchild or other loved one
- Make a 529 Plan contribution to an existing account
- Forward this email to a friend who should know about 529 Plans
Why Use 529 Plans?
- Tax free investment growth
- Tax free distributions for qualified educational expenses
- Certain states offer a tax deduction
- Available to investors of all income levels
- Low impact on financial aid
- Can invest in any state 529 Plan, regardless of residency
- 529 accounts are removed from your taxable estate, yet you retain full control over the account including the right to take the money back or transfer to a different beneficiary