May 29th marks a day dedicated to college savings, in particular, 529 college savings plans. What you may not know is this day is more than just awareness: many states offer special promotions and giveaways. Learn more about the possible perks of starting to save this May with special 529 College Savings Day giveaways.
How to Score 529 College Savings Day Giveaways
A 529 plan, also known as a “qualified tuition plan,” is a tax-advantaged investment plan designed to encourage saving for the future higher education expenses of a designated beneficiary (typically one’s child or grandchild).
Accounts can be opened for any child at any age. You just need their social security number. You can even open one for yourself if you plan on returning to school in the future. Please note that plans can vary by state. There are two types of 529 college savings plans: prepaid plans and savings plans.
There are many benefits to this plan which include:
- Withdrawals are tax-free and investments grow tax-deferred.
- Federal and state tax benefits – some states let you deduct a portion of your contributions from your state taxes.
- The person who opens the account remains in control of the account. The beneficiary does not gain control of the money at any specific age or time.
- Automatic investment options – a specified amount of money each month can be withdrawn from your checking or savings account. Also, you can contribute as much as you want.
- If it turns out the beneficiary won’t be using the money, you can change the beneficiary or roll the funds over to a different investment. You can also transfer the money from state to state.
Luckily for us, Collegesavings.org releases an interactive map each year outlining what various offers from state to state. Since each state offers different options and promotions, it’s best to check your individual state.
529 College Savings Day Giveaways Across the US
Here is a snapshot of the 529 College Savings Day giveaways:
- Pennsylvania– 1 $529 PA Guaranteed Savings Plan contest winner, $25 match for new accounts made between May 12-31.
- California– $50 match for new accounts opened between May 24-26.
- New York– $500 sweepstakes, many promotional events, and projects.
- Nebraska– 4 winners of $5,000 NEST 529 College Savings account for winners 10 years old or younger from across the country.
- Montana– “When I Grow Up” Giveaway to award $1,529 to the winner of the selected video.
Starting a 529 plan is a great way to help your child with early student debt relief. Use this time to research and think through college funds and all the 529 college savings day giveaways before it’s too late!