September 2017 Volume 15, Number 9 | |||||
Great Reasons to Offer a 529 Savings PlanA 529 college savings plan is considered one of the best ways for parents to save for their children’s’ higher education. Similar to a 401(k) savings plan or an Individual Retirement Account, contributions to the state-run plan grow tax free. In many states, participants get a tax deduction or credit for their contributions. Employers — many of whom already offer 401(k) plans — allow employees to make contributions to 529 plans through payroll deduction. And some states, such as Arkansas, Illinois and Nevada, offer employers a tax credit on matched contributions up to $500 per employee. In Nevada and Illinois, for instance, the tax credit is 25 percent. How it Works
College Board, a nonprofit agency created to expand access to higher education, estimates that a parent contributing just $100 a month beginning when their child is a newborn will have more than $38,000 by the time that child goes to college — enough to cover more than one year at an in-state college. |
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Could Direct Primary Care Control Your Health Care Benefit Costs? Opioid Addiction in the Workplace: How to Help Employees Switching to a High-Deductible Health Plan? Here’s How to Explain the Change Great Reasons to Offer a 529 Savings Plan
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