EDUCATION SAVINGS PLANS
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The cost of sending your children to college keeps growing, but you may be able to do something about it. If you live in a state that has a Section 529 Plan you need to look into it.. It is a tax-advantaged plan that helps with funding you child’s college costs.
The Texas plan had been closed to new applicants, but it may have been reopened, so if you’re a Texan, you need to contact the State Comptroller. Earnings on these plans accumulate tax-free.
If you aren’t in Texas, the description below will give you some idea of what a 529 plan may cover—which will vary state-by-state.
Texas Tomorrow Fund -- Guaranteed Tuition Plan (Texas)The Texas Guaranteed Tuition Plan (formerly the Texas Tomorrow Fund) is Texas's section 529 prepaid tuition plan. It lets you lock in the cost of tomorrow's college tuition and required fees at today's prices. It is available for newborn children through the 12th grade of high school. The purchaser or beneficiary must be a Texas resident. For Texas public colleges and universities, the plan covers tuition and fees required of all students. For Texas private colleges and universities and out-of-state institutions, the plan pays actual costs up to the average cost of attendance amount under the Texas Plan. The plan is guaranteed by the full faith and credit of the state of Texas. Qualified withdrawals are exempt from Federal income tax. Texas has no state income tax. For more information, contact:
To view the full web site of TAX MAN, click: http://wwwtaxman.blogspot.com which will contain additional information, better viewing and linkage to other sites..
The cost of sending your children to college keeps growing, but you may be able to do something about it. If you live in a state that has a Section 529 Plan you need to look into it.. It is a tax-advantaged plan that helps with funding you child’s college costs.
The Texas plan had been closed to new applicants, but it may have been reopened, so if you’re a Texan, you need to contact the State Comptroller. Earnings on these plans accumulate tax-free.
If you aren’t in Texas, the description below will give you some idea of what a 529 plan may cover—which will vary state-by-state.
Texas Tomorrow Fund -- Guaranteed Tuition Plan (Texas)The Texas Guaranteed Tuition Plan (formerly the Texas Tomorrow Fund) is Texas's section 529 prepaid tuition plan. It lets you lock in the cost of tomorrow's college tuition and required fees at today's prices. It is available for newborn children through the 12th grade of high school. The purchaser or beneficiary must be a Texas resident. For Texas public colleges and universities, the plan covers tuition and fees required of all students. For Texas private colleges and universities and out-of-state institutions, the plan pays actual costs up to the average cost of attendance amount under the Texas Plan. The plan is guaranteed by the full faith and credit of the state of Texas. Qualified withdrawals are exempt from Federal income tax. Texas has no state income tax. For more information, contact:
Texas Guaranteed Tuition Plan
Comptroller of Public Accounts
PO Box 13407Austin, TX 78711-3407
Phone: 1-800-445-GRAD (1-800-445-4723)
Fax: 1-512-475-0081
Email: texas.tomorrow@cpa.state.tx.usURL: www.tgtp.org or www.texastomorrowfunds.org
Also, you may wish to read from the link below:
http://www.finaid.org/savings/state529plans.phtml
Also, you may wish to read from the link below:
http://www.finaid.org/savings/state529plans.phtml
One thing to consider is the administrative costs. Vanguard and TIAA-CREF plans are among those with the lowest administrative expenses.
Since the tax rules keep changing and I have not yet received my Tax Guides for the upcoming tax season, I will not attempt to go into further details.
This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this Blog was not intended or written to be used and cannot be used for the purposes of avoiding penalties.
Since the tax rules keep changing and I have not yet received my Tax Guides for the upcoming tax season, I will not attempt to go into further details.
This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this Blog was not intended or written to be used and cannot be used for the purposes of avoiding penalties.
2 comments:
Good article. There is no need to stuck with texas plan. There are other choices. One similar I found was on website plans529.com (link below) is called college sure cd which is will index to the inflation and college cost. It is a certificate of deposit indexed to college costs and guaranteed to meet future tuition, fees, room and board.
http://www.plans529.com/Directory/tabid/145/rrcid/43/rrscid/0/rreid/21/rrpid/1/rrepp/5/Default.aspx
Thanks for the information. I had not heard about that type of CD.
That is a good alternative. If any of my clients are thinking about a 529
Plan, I'll pass on this invormation.
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