Have you started saving for the kids’ college? Bank accounts? Investments? Piggy banks? A 529 plan? With 3 boys who will hopefully be college bound one day, this is an important topic here. And, just look…the boys already know where they want to go!
The thought of paying for our 3 boys to go to college is however a bit scary! Thankfully though, we have a great savings option here in the form of the Arizona Family College Savings Program (529 Plan).
Are you familiar with 529 plans? Basically, they are savings plans permitted under IRS code section 529 designed to encourage individuals to save for future education expenses. And, did you know that ANY person can be a beneficiary?! Here’s a a snippet from the website:
Any person interested in pursuing post high school training and educational opportunities may be designated as a beneficiary of an account. Parents can save for their children. Grandparents can save for their grandchildren. Aunts and uncles can save for their nieces and nephews. Friends can save for their friends. You can even save for yourself.
How great is that?! I had NO idea that essentially anyone could save for anyone they want. What a GREAT gift that would be for the grandkids (and their parents) to receive from Grandma & Grandpa?! Very cool! There are tax incentives too!
Earnings grow tax-free and will have no federal income taxes on withdrawals used for qualified higher education expenses. For designated beneficiaries who are Arizona residents, funds are exempt from state taxation when used to pay qualified higher education expenses of the designated beneficiary.
If you’re interested in learning more or getting started head over to the #AZ529 website and find them on Facebook! Also, AZ529 is currently having a coloring contest for kids with some scholarship money up for grabs!
Disclosure: This post is sponsored as part of the #AZ529 College Savings Month Blog Tour. However, all opinions & experiences are are entirely my own. As a parent, I think knowing options about saving for college is important!